Turn Group possible Outcomes

Normal Turn Group

1. Normal Turn Group : All contributions made on time and turn group proceeds to termination with no defaults or insufficient security deposit.

This group's cycle 1 follows the pattern where each participant deposits their ETH collateral as per the original Takaturn 1.0, however the amount of ETH deposited is different based on their beneficiary position in the turn group.

4 cycles pass and everyone has paid according to the protocol specifications and the turn group has come to the end of its term. In the Takaturn 2.0, beneficiaries are not required to pay contributions when their turn to collect the money pot comes around, thus money pots are made up of the actual contribution made by participants and the benefit to the beneficiary of not having to pay a contribution, eg. a 200 USDC money pot will actually allow a beneficiary to claim 150 USDC.

Let’s assume that each of the participants elected to remain invested for the full term and that their initial collateral proportions were 0.15, 0.14, 0.13 and 0.12 ETH = 0.54 ETH total (Takaturn 2.0 allows users to deposit more than the minimum collateral required).

Our users decided to place more collateral security than was the minimum requirement. This because YG returns on Takaturn are favorable.

Whilst the participants were contributing to the money pot over a 4 cycle 1 month period (4 months in total with each in the group contributing 3 times and receiving the money pot once) in this case, The 0.54 collateralized ETH was invested in a YG protocol and earning a monthly yield. Based on our assumption above the yield generated over the period is 4% net of fees, each of the participants will be compensated according to the proportion of the total collateral that they contributed to the pool. As follows:

Total yield generated = 0.54ETH*4% = 0.0216ETH, this ETH is divisible into the following proportions, according to the initial individual collateral deposited in proportion to the total collateral pool.

Participant						Proportion share of yield generated		ETH earned
Daniel	=	(0.15/0.54)	*	100	=	27.78%*0.0216 ETH	=	0.0060
Fatima	=	(0.14/0.54)	*	100	=	25.93%*0.0216 ETH	=	0.0056
Salta	=	(0.13/0.54)	*	100	=	24.07%*0.0216 ETH	=	0.0052
Rudy	=	(0.12/0.54)	*	100	=	22.22%*0.0216 ETH	=	0.0048
Total	=					100%

Using the information above we can deduce that each participant will receive the following amount of ETH, in addition to the ETH that they deposited as security at the beginning of the turn group:

Member	Initial security deposit		Yield on security deposit (total over 4 months)		Security deposit available for withdrawal at the end of turn group
Daniel	0.15ETH	+	0.0060ETH	=	0.1560ETH
Fatima	0.14ETH	+	0.0056ETH	=	0.1456ETH
Salat	0.13ETH	+	0.0052ETH	=	0.1352ETH
Rudy	0.12ETH	+	0.0048ETH	=	0.1248ETH

Once the collateralized ETH and the yield generated on the collateralised pool are released to the participants, this turn group comes to an end.

Under normal turn group circumstances the collateral v RCC requirement of 1.1x RCC or > holds true so the MP is never at risk of being frozen by the Takaturn 2.0 FUND smart contract.