About Anti Derivative
The AntiDerivative Pre-token is created to raise financing for innovative fusion between crypto and modern finance. It is new collateral ensuring full payment security in the $500 trillion OTC derivative market.
- Regulatory change enacted in 2016
- Derivative holders lose their privilege position
- They are posed to loose huge amounts of money in the next financial crisis
- Self-executable new collateral
- Price stable (special mechanism to smoothen volatility)
- Transparent (all users will be identifiable)
- Regulatory compliance
- Returns derivative holders on their privileged position in a resolution (industrial use)
- Creates iron-cast certainty
- $ 500 trillion ($500’000 billion) overall size of the market (OTC derivatives)
- Need to capture 0.007% of the market to reach price of $1.00 (the ICO price is $0.01)
- Derivative holders will be certain in payment, should a financial crises occurs
Counterparties are incentivized to use it to lure lucrative clients from the fierce competition; the collateral is liquid and will stay on their books, thus not affecting the bottom line of the counterparty.
OTC derivative contracts are industrial insurances. Medium and large businesses use them to hedge risks such as volatility in interest rates, commodity prices or exchange rates. Banks usually take those risks for a fee. This market is enormous – worth $500 trillion. Derivatives used to be very secure, because if the bank were to fail the derivative holders were the first to take their money and if there was anything left after that that the depositors and the state were next in line. However in 2008 it became obvious that if major bank fails derivatives would submerge the whole system. Since 2016 this changed as new regulations kicked in. Derivative holders were moved from first to fifth place and promised that special funds would be set up to protect against counterpart failure. Funds that are nearly $4 trillion underfunded. So in a new financial crisis the derivative holders would be mandated by law to face enormous losses. The only way for them to ensure payment of the sums due is to use the Anti-Derivative token. If the bank fails to pay the tokens will move automatically move from the bank’s account to that of the derivative holder. Banks are incentivized to use the token to attract lucrative clients from the fierce competition; the collateral is liquid and will stay on their books, thus not affecting the bottom line of the bank.