Getting Started: Investing in On-Chain Bonds on Amet Finance
Welcome to your journey into the world of on-chain bonds with Amet Finance. This guide is designed to make your introduction as straightforward and comprehensible as possible, especially if you are new to this form of investment. Here’s how you can start investing in on-chain bonds and what to expect during the process:
Step-by-Step Roadmap to Investing in On-Chain Bonds
Purchasing a Bond
Select a Bond: Begin by exploring the bonds available on the Explore page. Each listing will provide key details including the yield rate, secured percentage, and maturity period.
Make an Investment: Once you've chosen a bond that fits your investment criteria, you can proceed to purchase it.
Waiting for Maturity
Monitor Your Investment: After purchasing, you can monitor the performance and countdown to maturity on the Bond Page of each specific bond you've invested in.
Understanding Secured Percentage: This is a crucial metric indicating the proportion of your payout securely held in the contract. It ensures that the promised payout is locked within contract, providing reassurance that you will receive your returns upon maturity.
Redeeming the Bond
Receive Payout: When the bond reaches its maturity date, you can redeem it to receive your payout. The process is straightforward, usually involving a simple confirmation on your part within the platform.
Additional Features for Investors
NFT Ownership: Each bond purchase issues an NFT representing your ownership. This digital token not only signifies your rights but also adds an element of tradability, allowing you to sell the bond on secondary markets if you choose to exit before maturity.
Capitulation Redeem Logic: In exceptional circumstances where you need to exit the bond early, Amet Finance provides a capitulation redeem feature that allows for early withdrawal, albeit usually with a financial penalty.
Why Understanding Secured Percentage is Key
The secured percentage is perhaps the most important metric for new investors to understand. It reflects the level of security and reliability of the bond. A higher secured percentage means that a larger portion of your expected payout is locked within contract, minimizing the risk of default by the issuer.
Conclusion
Investing in on-chain bonds with Amet Finance offers a unique blend of traditional security and innovative blockchain technology. While it might seem complex at first, understanding the basic process—from purchasing to redemption—and key metrics like the secured percentage can help demystify the experience. As always, we encourage you to do your own research (DYOR) to make informed decisions.
If you ever feel unsure or need further assistance, our community on Discord is ready to help guide you through any questions you may have. Dive in and start your investment journey with confidence in the world of on-chain bonds at Amet Finance!
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