IDO price guarantee: SolRazr launch standards and price guarantee terms

10 min readMar 9, 2023

The vision at SolRazr is to bring only high quality and genuine projects for its community to invest in. We have always made efforts to protect our community interest. In line with these efforts, we were the first launchpad to introduce IDO price guarantee.

SolRazr users have benefitted by claiming 100% refunds in cases where the IDO price guarantee was triggered. However, with time we have realized that more needs to be done to protect the community interest. Why? This is because we notice that despite the safeguards, community’s funds are lost on the vestings which do not fall under the IDO price guarantee period. Hence, we are changing the IDO price guarantee terms to cover a major chunk of the vesting. Find details on all the terms below:

TL, DR:

Price guarantee remains in effect until the conclusion of 48 hours after 51% of vesting has been completed.
Funds will be released to project on each vesting if guarantee is not triggered.
If guarantee triggers, ALL users get refunds on unvested portion by default.
Refunds on last vesting to be given to users if they did not move tokens and apply for refund.
Other factors that can trigger refunds: Inadequate liquidity, abandoning the project, theft/hack, SolRazr discretion.

SolRazr works with projects to offer IDO price guarantee and uphold high launch standards. This increases buyer’s confidence on SolRazr platform. For projects, it means they can comfortably fill their IDO sales pool. Hence, we require the projects to agree on the following terms.

1. IDO price guarantee:

The token should maintain at least the IDO price for 48 hours on each of the vesting including the one on TGE. This is applicable till the conclusion of 48 hours after 51% of vesting has been completed.

Conditions to trigger IDO price guarantee

If the token price goes below the IDO price, we will trigger refunds. Read more to know details.

What happens if the token price goes below the IDO price only for a few moments and trades above the IDO price for most of the time?

There can be many wicks/ weak moments during the 48 hour guarantee period for each vesting. The course-correction in such cases may take some time. Hence, we allow some flexibility for projects to do the course-correction. Therefore, the token should not trade below IDO price for more than 12 hours during the 48 hours period from distribution or listing (as applicable).

Note: SolRazr keeps the right to trigger refund if we feel that price is being artificially held above IDO price due to low/poor liquidity etc.

How will SolRazr calculate the period when the token remained below the IDO price?

SolRazr will analyze the trading chart for the 48 hours period from the vesting time/listing time (as applicable). Each hourly candle closing below the IDO price will add to the ‘period below IDO price’. If the total ‘period below IDO price’ exceeds 12 hours in the 48 hours guarantee period, SolRazr will trigger refunds.

Which trading chart/exchange data will SolRazr use if the token is listed on multiple exchanges?

SolRazr will use its own discretion to analyze which trading chart to use. Broadly speaking, we will use a trading chart from an exchange where most liquidity for the token is present. The rationale for having this position is below:

Many times, the price feed for a newly launched token does not immediately reflect on CMC or CG. This makes it difficult to analyze trading chart on CMC and CG.

Sometimes, price feed on CMC/CG is updated only from one of the Dex or Cex making the price look very volatile and difficult to reach a conclusion.

What happens if the trading chart is not at all available for the token for the 48 hours guarantee period?

In such circumstances, SolRazr will take snapshots of prevailing price at different intervals during the guarantee period. If the token price is found ‘below IDO price’ for more than 12 times during the 48 hour guarantee period, SolRazr will trigger refunds. The decision for triggering refund will be purely at the discretion of SolRazr.

What is the start time for calculation of the 48 hours guarantee period on each vesting?

Vesting-1 (i.e. the unlock on TGE): 48 hours period will be counted from the listing time

Vesting-2 (i.e. any vesting other than what is unlocked on TGE): We will distribute all vestings other than TGE/listing unlock at 12 PM UTC for all projects. Thus, 48 hours period for these vestings will be calculated from 12 pm UTC on the day of distribution.

What happens if the token price is below IDO price before the distribution of vesting-2?

This is a corner-case. The way we will handle this is as below:

If the token price is more than 20% down than the IDO price on the day of distribution of vesting-2 or vesting-3 or any other vesting other than vesting-1, SolRazr will not even distribute the token to the users and trigger refunds. The entire undistributed portion will by default be refunded to the community.

Eligibility & conditions on refunds; Transfer of funds to project

In an unfortunate situation when the IDO price guarantee triggers, we will refund the entire unvested portion to all the users. In addition, we will also provide an option to get a refund for the last vesting when the IDO price guarantee is triggered. The refunds on the last vesting will be offered to those who did not move the tokens from the time of distribution of the last vesting.

Below is an example:
Project A launches on SolRazr. The vesting schedule is:

Vesting 1: 25 % on TGE/listing

Vesting 2: 25 % end of month 1 from listing

Vesting 3: 25 % end of month 2 from listing

Vesting 4: 25 % end of month 3 from listing

Now, if the token price maintains at least the IDO price for 48 hours from listing time, SolRazr will transfer funds equivalent to the first vesting to the project.

However, on vesting-2, if the token does not maintain at least the IDO price for 48 hours from the vesting time/distribution by SolRazr, we will trigger refunds. Triggering refunds will result in following:

Unvested portion (50% in this case): Full refund to users i.e. If user XYZ participated with $100 originally, he will be eligible to get $50 on the unvested portion in this case.

Vested portion (50% in this case): SolRazr will open the option of refund to users on the vesting-2 received by them. This option is open only for those who did not move the last vesting i.e. vesting-2 in this case. Thus, if user XYZ has not moved his vesting-2 from his wallet, he is eligible to get another $25 refund if he wants (apart from $50 which SolRazr will refund by default due to triggering of IDO price guarantee)

Release of Funds to projects

SolRazr will release funds with each vesting. The funds for any vesting will be released if the token price maintains at least the IDO price for 48 hours after distribution by SolRazr.

2. Ensuring adequate liquidity

SolRazr requires the projects to provide adequate amount of liquidity to the token. This will differ from project to project. SolRazr will communicate the expected amount of liquidity to the project. Broadly, adequate liquidity means following:

a. Liquidity amount should be equivalent to 50% of all the tokens unlocked at any point.

b. Minimum 80% of the liquidity should be in the +/- 5% price range of the current market price.

In case, liquidity is found to be lower than what is dictated by SolRazr or it breaks the principles indicated above, SolRazr will trigger refunds based on its discretion.

3. Some corner cases that may cause triggering of Refunds

While SolRazr partners only quality projects with trustworthy teams building genuine products, there could potentially be some scenarios where SolRazr has little control. For example, a scenario where a project is abandoned by the team.

Similarly, sometimes quality projects with strong community, robust business plan and reputed backers on their investor list, approach us at MVP/closed-alpha stage to raise funds. Judging the security of their smart contracts and the level of preparation to avoid thefts/hacks is hard at this point.

SolRazr does not have much control over such scenarios. The least we can do is to ensure that our community funds stay safe to the maximum possible extent. Hence, any sign of abandoning of project by the team, a theft/hack will form basis to trigger refunds to SolRazr community. The decision to trigger refunds in such cases will be at the discretion of SolRazr.

4. Token transfer

SolRazr requires the project to transfer all tokens (equivalent to what is raised on SolRazr) at least 48 hours before the listing time. Non-compliance to this may cause cancellation of sale.

5. No more than 4 weeks gap between IDO and listing

We require projects working with SolRazr to clearly plan for the listing. Hence, no more than 4 weeks gap is allowed between the IDO date and the listing date.

There can be exceptions to this. But the same is to be approved by SolRazr on a case-to-case basis.

Why are exceptions allowed? Often, projects are talking to different exchanges and there are no clear dates for listing. Also, top-tier exchange listings may be time consuming.

6. SolRazr reserves the right to trigger refunds to users or cancel the sale at any point. SolRazr decision will be final in this regard.

7. SolRazr reserves the right to adjust the launch standards and price guarantee terms as it may deem fit.

FAQ:

Let’s understand cases with a sample project, say Project A.

Project A’s vesting schedule is as below:

Vesting 1: 25 % on TGE/listing

Vesting 2: 25 % end of month 1 from listing

Vesting 3: 25 % end of month 2 from listing

Vesting 4: 25 % end of month 3 from listing

What happens if the guarantee is not triggered till 48 hours from listing time?

SolRazr will transfer funds to the project equivalent to the 1st vesting.

2. What happens if guarantee is not triggered till 48 hours from distribution of vesting-2?

SolRazr will transfer funds to the project equivalent to the 2nd vesting.

3. What happens if guarantee is not triggered till 48 hours from distribution of vesting-3?

As more than 51% of vesting is finished, SolRazr will transfer all remaining funds to the project.

5. What happens if the token price is below IDO price before the distribution of vesting-2?

This is bit of corner case. The way we will handle this is as below:

6. What happens if the token price goes below the IDO price on any of the vestings (including vesting-1)?

There can be many wicks/ weak moments during the 48 hour guarantee period. The course correction in such cases may take some time. Hence, we allow some flexibility for projects to do the course-correction. Therefore, we expect the token should not be below IDO price for more than 12 hours during the 48 hours period from distribution or listing (as applicable).

7. How will SolRazr calculate the period when the token remained below the IDO price?

8. Which trading chart/exchange data will SolRazr use if the token is listed on multiple exchanges?

Many times, the price feed for a newly launched token does not immediately reflect on CMC or CG. This makes it difficult to analyze trading chart on CMC and CG.

Sometimes, price feed on CMC/CG is updated only from one of the Dex or Cex making the price look very volatile and difficult to reach a conclusion.

9. What happens if the trading chart is not at all available for the token for the 48 hours guarantee period?

10. What is the start time for calculation of the 48 hours guarantee period on each vesting?

Vesting-1 (i.e. the unlock on TGE): 48 hours period will be counted from the listing time

11. What happens if the token is above price on vesting-1 but goes way below immediately after completion of 48 hours from vesting-1 (or for that matter on any of the vestings like vesting-2, vesting-3, vesting 4 etc.)?

This is another corner case. SolRazr will wait until the next vesting is due. It could potentially be displeasing to watch the token price below IDO price for most of the period between the two vestings. However, we will take a call only on the due vesting day as per details on FAQ no. 4.

The community funds will be safe with SolRazr.

Thanks for reading! We know the information could have been overwhelming. In case you have any questions, drop a message on our Telegram or Discord.