# Introduction Let's get this $BREAD BakerDAO combines token economics, collateralized lending, leverage, and Proof-of-Liquidity into a single cohesive financial ecosystem. The `$BREAD` token features a mathematically-enforced upward price trajectory, backed by `$BERA` tokens. This is a bonzi incubated by the core teams at [Kodiak Finance](https://x.com/KodiakFi) and [Yeet](https://x.com/eatsleepyeet), and in collaboration with [OlympusDAO](https://x.com/OlympusDAO). Here's a quick explainer of Baker DAO: * Users bake `$BREAD` by depositing `$BERA` * Users can burn `$BREAD`, to redeem `$BERA` * Users can take `$BERA` loans against their `$BREAD` at `99%` LTV and access leverage * There will be whitelisted pre-deposit vaults for users to deposit `$BERA`, and mint `$BREAD` at the same price as other depositors in same vault * The baking and burning bonding curve ensures that `$BREAD` always rises against `$BERA` regardless of user behaviour * The initial supply of `$BREAD` will be determined by how much `$BERA` is deposited in the pre-deposit vaults. The initial max cap of `$BREAD` will be `6.9 million`. After that, the supply will be dynamic and the cap is adjusted each week. {% hint style="info" %} Due to the nature of the mechanism, the max loss a participant can incur in $BERA by participating is 5.38%: from the 2.69% minting and burning fees respectively. If a participant is not the last user to ever mint $BREAD their max loss is less than 5.38%. {% endhint %} # $BREAD Rises Up only There are various actions that users can undertake in the protocol. Each of them has an associated fee. 70% of baking, burning, loan, and leverage fees increase the liquid backing of each circulating `$BREAD`. * Every time someone bakes or burns `$BREAD`, the fee is added to the `$BERA` backing * Every time someone opens a loan, the loan interest fee is added to the `$BERA` backing * Loans are time based, and if someone defaults on a loan, their `$BREAD` is burned * If `$BREAD` is burned - decreasing the supply and reducing the backing - the fees from doing so are added to the backing which still increase the ratio of `$BERA` backing each circulating `$BREAD` * Even when the supply increases, more `$BREAD` cannot come into circulation without fees being added to the backing that further improve the exchange rate of `$BREAD` to `$BERA` * Please note that `$BREAD` is up-only against `$BERA`, not `$USD` {% hint style="info" %} The source of yield is sustainable because it stems from: new participants minting, burning, initiating loans, and defaulting. LP incentives come from protocol revenue, as well as other incentives from Kodiak, Yeet, and Olympus. {% endhint %} # What makes BakerDAO Unique ## Berachain-native approach * Liquidity will be seeded for `$BREAD` with `$OHM`, which will be incentivized by Olympus, Yeet, and Kodiak. LPs for `$BREAD`/`$OHM` in the Kodiak island will earn `$BERA`,`$OHM`, `$YEET`, `$xKDK`, and swap fees. * `$BGT` whitelisting will be prioritized for integration into the PoL flywheel as soon as possible * Protocol fees are used for bribing Berachain validators to earn `$BGT` instead of being used for direct LP rewards, and will benefit from co-bribes and boosts from Yeet, Olympus, and Kodiak * Fees structure is optimized in order to make backing grow more quickly * In other protocols that use a similar bonding curve mechanism, fees are used as LP rewards. Since LPing is already heavily incentivized, this is temporarily reduced to `5%` in Baker DAO, and it is set aside for exclusively making PoL bribes once the pool and single sided `$BREAD` staking are whitelisted for `$BGT` emissions. After whitelisting, this split used for bribes is increased to `15%` * In other protocols that use a similar bonding curve mechanism, after the baking (minting) cap is reached, no new baking is possible. In Baker DAO, the max cap is dynamic and adjustable by the Master Baker * The initial cap is `6.9 million` * The target cap increase is `50%` per week, subject to the monetary policy * The Master Baker can also enable baking via unique, beneficial methods, such as imposing different whitelists on baking, or enabling baking with `$BGT` * Future versions may include the ability to bake `$BREAD` directly via participation in PoL and depositing LP tokens in the Bakery * Active borrow positions pasively earning PoL rewards ## Security and User Experience * Use of whitelists and pre-deposit vaults means users cannot get frontrun by bots and receive more equitable pricing in early participation # Pre-Deposit Vaults and Whitelists This phase is complete Before the protocol goes live, there will be three seperate pre-deposit vaults in which users can deposit $BERA, which will be used to bake `$BREAD`. Each vault depositor receives the same baking price as fellow vault depositors, and each vault mints in a separate tranche, sequentially. This means that: * The first vault bakes first and gets the best price, the second and third vaults mint in their own respective order * After the pre-deposit vaults have baked, public baking becomes live * All depositors in the same vaults get the same price, and baking via a pre-deposit vault eliminates the risk of being frontrun ## Vault tiers and whitelist criteria ### Senior baker vault * Who can deposit? Addresses that meet any of the following criteria: * Own `69` `$xKDK` or more * Stake `6900` `$YEET` or more * Liquidity Trifecta Vault depositors with `69` `$TRI-YEET` or more * Is there a cap? `1690` `$BERA` per address, and `269,000` `$BERA` total ### Junior baker vault * Who can deposit? Addresses that meet any of the following criteria: * Own `0.69` $gOHM or more (any chain, and includes stakers) * Own `169,000` `$BM` or more * whitelisted partner communities * Is there a cap? `1169` `$BERA` per address, and `269,000` `$BERA` total ### Missoor vault * Who can deposit? Addresses that were whitelisted for Senior and Junior vaults but did not manage to depoit * Is there a cap? `1690` `$BERA` per address, and `69,420` `$BERA` total ### Public baker vault * Who can deposit: Anyone, this vault is public * Is there a cap? None per address, but `169,000` `$BERA` total in vault {% hint style="info" %} The BakerDAO treasury has the ability to bake a maximum of 6900 $BREAD at the initial price with no fees. This will be used to seed liquidity in the $BREAD/$OHM liquidity pool, and for future incentives {% endhint %} # Mechanics # Baking and Burning The bread and butter ## Baking **Mechanism:** Users can bake `$BREAD` by depositing `$BERA` into the protocol's smart contract. **Fee:** A `2.69%` fee is applied to each baking transaction. Fees are added to the protocol, increasing the `$BERA` backing per circulating unit of `$BREAD.` **Dynamic Baking Cap:** a baking cap is determined each week. If the cap was reached in the previous week, the baking cap increases by `50%`, allowing for new `$BREAD` baking. If the cap was not reached, then it remains unchanged. The initial supply cap is `6.9 million` `$BREAD`. **Master Baker:** The controller of the dynamic baking cap, and can impose whitelists on baking in order to benefit the protocol. This is an ongoing administrative function. ## Burning **Mechanism:** Users can redeem `$BERA` by burning `$BREAD.` **Fee:** A `2.69%` fee is applied to each redemption.
\*`2.69%` baking and burning fee incurred on each Bake and Burn. `65%` of fee increases `$BERA` backing, `35%` is directed to Protocol Treasury for bribes and OpEx. ## Example * Let's assume there are `100` `$BREAD` tokens in existence, and there is `100` `$BERA` tokens backing them in the contract. That means the exchange rate between them is 1:1, giving a price of `1` `$BERA` per `$BREAD` * There is a `2.69%` bakng fee, so to bake the next `$BREAD` token a user must pay `1.0269` `$BERA`. Of the fee collected, `65%` or `0.017485` `$BERA`, is added to the backing * There is now `101` `$BREAD` in circulation and `101.017485` `$BERA` in the backing. The new exchange ratio is now approximately `1.0001731188` `$BERA` per `$BREAD` * This exchange rate still increases in `$BREAD`'s favor if there is a burn. Let's assume a user burns `3` `$BREAD` to redeem `$BERA`. There is a `2.69%` burning fee. Of the fee collected, `65%` or `0.052455` `$BERA`, is added to the backing * There is now `98` `$BREAD` in circulation and `98.06994` `$BERA` in the backing. The new exchange ratio is now approximately `1.0007136735` `$BERA` per `$BREAD`. * The backing always increases, regardless of a Bake or Burn occurring. ``` [User Deposits 1.0269 BERA] | v +---------------------------+ | BREAD Token Smart Contract | +---------------------------+ | |---> Adds to Contract Backing: | - 1.00 BERA (Base Amount) | - 0.017485 BERA (65% of Fee) | |---> Distributes Fees: | - 0.004035 BERA (15% of fee) to PoL Bribes | - 0.00538 BERA (20% of fee) to Treasury | |---> Bakes 1 BREAD Token v [User Receives 1 BREAD Token] ``` # Loans Borrow $BERA at 99% LTV ## Borrowing * **Mechanism:** Users can borrow using `$BREAD`as collateral. * **Loan Terms:** * **Collateral Requirement:** Users can borrow up to `99%` of their `$BREAD'`s value in `$BERA` (`99%` Loan-to-Value Ratio) * **Duration:** Minimum `1` day, Maximum `365` days * **Interest:** Interest rates are calculated on a linear scale with an APR of `6.9%`. Interest is collected up front, upon initiation of a loan. * There is a minimum interest fee to ensure that the burn fees cannot be bypassed by taking a 1 day loan and defaulting * Please visit [Interest Fees](/mechanics/interest-fees)for more detail * **Liquidation:** If a loan defaults, then the `$BREAD` collateral is burned. Since loans are over-collateralized, burning the collateral causes the ratio of `$BERA` per `$BREAD` to increase. `$BREAD` collateral from liquidated positions are burned collectively, every day, at `00:00 UTC` {% hint style="info" %} **Important Note**: You can only have one active loan position at a time in BakerDAO. If you already have a Standard loan, you cannot create an automated looped position (and vice versa) until you close your existing position {% endhint %}
\*Loans can taken with a `99%` LTV. Interest is paid upon initiation of the loan, and is deducted from the total borrowed amount. `65%` of fee increases $BERA backing, `15%` is used for liquidity bribes, and `20%` is retained by the treasury {% hint style="success" %} The maximum amount that can be taken as a loan is determined by the $BERA backing of $BREAD and the ratio between both assets, it is not dependent upon secondary market value. Therefore, loans cannot be liquidated by price movement, and loss of collateral is only possible if user does not pay back loan in time {% endhint %} ## Liquidation example * Assume there is `100` `$BREAD` tokens in circulation, and there `100` `$BERA` tokens backing them on the contract. The price of `1` `$BREAD` is `1` `$BERA`. All the `$BREAD` is owned by one user * A user can take a loan that is `99%` of their `$BREAD` value. In this case, they use `100` `$BREAD` as collateral to borrow `99` `$BERA`, and specific a loan length when initiating the loan (must be between `1` and `365` days) * The user fails to repay their loan on time, leading the position to be liquidated. `99.7%` of the collateral, or `99.7` `$BREAD`, is burned and the remaining `0.3%`, or `0.3` `$BREAD` is distributed to PoL bribes and treasury * As the loan was `99%` LTV, the `1%` collateral premium as well as `65%` of interest fees are added to the `$BERA` backing of `$BREAD`, which leads to the exchange ratio between them increasing with more `$BERA` backing each circulating `$BREAD` # Looping For the degens and Yeetards *Using leverage carries risks. It is possible to lose all of your collateral if you do not pay back your loan in time.* ## Leveraged borrowing * **Advanced Feature:** Users can borrow `$BERA` against their `$BREAD`, use the borrowed `$BERA` to bake or buy more `$BREAD`, and repeat this process; i.e., *looping* * **UI Support:** A user friendly interface on the BakerDAO website facilitates looping in one transaction, making it quick and simple to open and unwind leveraged positions * **Fee Discount:** The `$BREAD` baking fee is discounted from `2.69%` to `1.42%` when opening leveraged positions * **Liquidation:** If a leverage position defaults, then the `$BREAD` collateral is burned, causing the ratio of `$BERA` per `$BREAD` to increase. `$BREAD` collateral from liquidated positions are burned collectively, every day, at `00:00 UTC` {% hint style="info" %} **Important Note**: You can only have one active loan position at a time in BakerDAO. If you already have a Standard loan, you cannot create an automated looped position (and vice versa) until you close your existing position {% endhint %}
{% hint style="info" %} Using looping allows users to create leveraged $BREAD exposure. If a position is max looped, no more liquid $BERA may be borrowed against the position due to diminishing amount of $BERA being used each loop. {% endhint %} ## One-click looping In order to facilitate easier opening of looped positions, users can open max looped positions in one click which utilize flashloans to create the position in a single transaction. This allows users to easily open and close leveraged positions, and baking fees are reduced from `2.69%` to `1.42%` for these transactions. ## Solidity implementation ``` /// @notice Calculates the leverage fee for a loan /// @param bera Amount of BERA to borrow /// @param numberOfDays Duration of the loan in days function loopCalcs(uint256 bera, uint256 numberOfDays) public view returns (uint256 bakeFee, uint256 userBorrow, uint256 overCollateralizationAmount, uint256 interest) { bakeFee = bera * leverageFeeBps / BPS_DENOMINATOR; uint256 userBera = bera - bakeFee; userBorrow = userBera * COLLATERAL_RATIO / BPS_DENOMINATOR; overCollateralizationAmount = userBera - userBorrow; interest = getInterestFee(userBorrow, numberOfDays); } ``` ## Flash Burn This functionality allows users to close a position using the `$BREAD` collateral itself without needing to acquire additional `$BERA`. To use this, select "Existing Collateral" in the repayment modal. When you choose "Existing Collateral", the following process occurs: 1. **Collateral Valuation**: The system calculates the current value of your BREAD collateral in terms of BERA based on the protocol's backing ratio. 2. **Burn Fee Application**: A 2.69% burn fee is applied to your BREAD's valuation, reducing the effective value. 3. **Debt Settlement**: The remaining value (after the fee) is used to settle your outstanding loan. 4. **Excess Value Check**: The system determines if there's any value left after repaying the loan: * If the remaining value exceeds the loan amount, the excess is returned to you as BERA. * If the remaining value is less than or equal to the loan amount, nothing is returned (the entire collateral value is consumed).
# Borrowing vs Looping 1-click looping is effectively a "flash loan" mechanism to borrowing all the `$BERA` needed to establish the position up-front. Additionally it benefits from discounted baking fees. If the fees are the exact same (i.e. bake fee = `2.69%` AND looping fee = `2.69%`), then the outcome is the same (within a small expected tolerance related to order of operations). To clarify: calling 1-click loop with 10K BERA is effectively the same thing as having 10K `$BERA` in your wallet, baking `$BREAD` with it, and borrowing at 99% LTV against it. Except 1-click loop lets you do it without having any `$BERA` in your wallet, and for a discounted bake fee! This is a mathematical property and invariant that is enforced in the code. =lease see the Solidity test written below for an example: **Test comparing looping vs normal borrow:** * bakeFee and leverageFee are both set to `2.69%` * 10K `$BERA` for `365 days` ``` function test_LoopVsBorrow() public { vm.startPrank(bread.owner()); bread.setLeverageFee(269); bread.setBakeFee(269); vm.stopPrank(); uint256 amountToLoop = 10_000 ether; uint256 daysToLeverage = 365; vm.deal(user4, amountToLoop + 1 ether); vm.startPrank(user4); { uint256 breadLastPriceBefore = bread.lastPrice(); uint256 beraBalanceBefore = user4.balance; console.log("Bread price before: ", breadLastPriceBefore); console.log("Bera balance before: ", beraBalanceBefore); console.log("Bera balance before: ", bread.balanceOf(user4)); console.log("Bread totalSupply before:", bread.totalSupply()); uint256 snapshot = vm.snapshotState(); uint256 balanceAfterLoop; uint256 breadPriceAfterLoop; uint256 collateralAfterLoop; uint256 borrowedAfterLoop; uint256 treasuryBalanceAfterLoop; { console.log("---testing loop---"); bread.loop{value: amountToLoop}(amountToLoop, daysToLeverage); (uint256 collateral, uint256 borrowed, , ,) = bread.activeLoans(user4); balanceAfterLoop = user4.balance; breadPriceAfterLoop = bread.prevPrice(); collateralAfterLoop = collateral; borrowedAfterLoop = borrowed; treasuryBalanceAfterLoop = address(breadTreasury).balance; console.log("Balance after: ", balanceAfterLoop); console.log("Collateral after: ", collateralAfterLoop); console.log("Borrowed after: ", borrowedAfterLoop); console.log("Bread balance after: ", address(bread).balance); console.log("Treasury balance after: ", treasuryBalanceAfterLoop); console.log("Bread price after: ", breadPriceAfterLoop); console.log("Bread totalSupply after:", bread.totalSupply()); } vm.revertToState(snapshot); assertEq(breadLastPriceBefore, bread.lastPrice(), "Bread price should be the same after revert"); assertEq(beraBalanceBefore, user4.balance, "Bera balance should be the same after revert"); { console.log("---testing max borrow after minting BREAD---"); bread.bake{value: amountToLoop}(user4); console.log("Bread balance after mint: ", bread.balanceOf(user4)); uint256 borrowBasedOnLoopInput = amountToLoop - amountToLoop * bread.leverageFeeBps() / bread.BPS_DENOMINATOR(); uint256 borrowBasedOnCurrentBread = bread.BREADtoBERAFloor(bread.balanceOf(user4)); uint256 collateralSaved = (borrokwBasedOnCurrentBread - borrowBasedOnLoopInput) * bread.BPS_DENOMINATOR() / bread.COLLATERAL_RATIO(); console.log("Borrow to input based on function loop: ", borrowBasedOnLoopInput); console.log("Borrow to input based on calc: ", bread.BREADtoBERAFloor(bread.balanceOf(user4))); console.log("Collateral saved from calculation difference: ", collateralSaved); bread.borrow(borrowBasedOnLoopInput, daysToLeverage); //use the same input as in loop calcs (slightly less due to old bread price) (uint256 collateral, uint256 borrowed, , ,) = bread.activeLoans(user4); console.log("Balance after: ", user4.balance); console.log("Collateral after: ", collateral); console.log("Borrowed after: ", borrowed); console.log("Bread balance after: ", address(bread).balance); console.log("Treasury balance after: ", address(breadTreasury).balance); console.log("Bread price after: ", bread.lastPrice()); console.log("Bread totalSupply after:", bread.totalSupply()); assertApproxEqAbs(user4.balance, balanceAfterLoop, 1, "Bera balance after borrow should be the same as after loop"); assertApproxEqAbs(borrowed, borrowedAfterLoop, 1, "Borrowed after borrow should be the same as after loop"); assertApproxEqAbs(bread.prevPrice(), breadPriceAfterLoop, 1, "Bread price after borrow should be the same as after loop"); assertApproxEqAbs(collateral, collateralAfterLoop, borrowBasedOnCurrentBread-borrowBasedOnLoopInput, "Collateral after borrow should be same as after loop (ex collateral saved)"); } } } ``` # Interest Fees ### How Interest Fees Work Interest in Baker DAO works differently from traditional loans. Here's a comprehensive explanation of how the interest fee mechanism functions: #### Basic Interest Calculation The standard interest calculation follows this formula: ``` Interest Fee = Borrowed Amount × (INTEREST_APR_BPS / BPS_DENOMINATOR) × (Loan Duration in Days / 365) ``` Where: * `INTEREST_APR_BPS` is the annual interest rate in basis points (690 BPS = 6.9%) * `BPS_DENOMINATOR` is 10,000 (standard basis point denominator) * `Loan Duration in Days` is your selected loan term For example, if you borrow 100 BERA for 30 days: ``` Interest Fee = 100 × (690 / 10,000) × (30 / 365) = 100 × 0.069 × 0.0822 = 0.567 BERA ``` #### The Minimum Interest Fee Mechanism Baker DAO implements a minimum interest fee to ensure that the borrowing system cannot be exploited to bypass the burn fee. This is based on the smart contract function: ```solidity function getInterestFee(uint256 borrowed, uint256 numberOfDays) public view returns (uint256) { uint256 interestFee = borrowed * INTEREST_APR_BPS * numberOfDays * 1e18 / 365 / BPS_DENOMINATOR / 1e18; uint256 overCollateralizationAmount = borrowed * (BPS_DENOMINATOR - COLLATERAL_RATIO) / COLLATERAL_RATIO; uint256 burnFee = (borrowed + overCollateralizationAmount) * burnFeeBps / BPS_DENOMINATOR; if(burnFee <= overCollateralizationAmount) { return interestFee; } else if(interestFee >= burnFee - overCollateralizationAmount) { return interestFee; } else { return burnFee - overCollateralizationAmount; } } ``` Let's break down what this means: 1. The function first calculates a standard interest fee based on APR and duration 2. It then calculates the over-collateralization amount (the 1% buffer between the loan and collateral) 3. It determines what the burn fee would be if the user burned both the borrowed amount and the over-collateralization 4. Finally, it compares these values to determine the appropriate interest fee ``` // Assume you have 100 BERA worth of BREAD // Borrow 99 BERA // If I sold my BREAD, I would get 100 BERA - 2.69% burn fee = 97.31 BERA // If I borrow BERA against that same BREAD, I should receive no more than 97.31 BERA // If I borrow 99 BERA, that means there is 1 BERA overCollateralizationAmount // Interest Fee should be at least (99 - 97.31) = 1.69 BERA // Ensure that borrowing + letting yourself get liquidated isn't cheaper than burning ``` #### How the Minimum Fee Works in Practice The protocol ensures that taking a short-term loan and defaulting isn't cheaper than simply burning BREAD tokens. Here's how: 1. **Standard Case**: If the regular interest calculation (6.9% APR pro-rated for your loan duration) results in an interest fee higher than the minimum threshold, this standard interest is applied. 2. **Minimum Fee Case**: If the regular interest calculation would result in a fee lower than the minimum threshold, the fee is increased to the minimum. The minimum fee is calculated as: ``` Minimum Fee = Burn Fee - Over-collateralization Amount ``` Where: * `Burn Fee` is the cost of burning the equivalent amount of BREAD (2.69% of value) * `Over-collateralization Amount` is the 1% buffer between borrowed amount and collateral #### Fee Comparison Examples **Example 1: 1-Day Loan** * Borrow Amount: 100 BERA * Duration: 1 day * Standard Interest Calculation: 0.019 BERA (0.019%) * Minimum Fee Check: Applies * Actual Fee: Minimum fee of 1.69% (1.69 BERA) **Example 2: 365-Day Loan** * Borrow Amount: 100 BERA * Duration: 365 days * Standard Interest Calculation: 6.9 BERA * Minimum Fee Check: Standard interest exceeds minimum * Actual Fee: 6.9 BERA # Staking LPing $OHM/$BREAD and earning rewards ## Staking **Mechanism:** Users provide liquidity in the Kodiak Island, and can stake the LP token to earn rewards More information about Kodiak Islands can be found in the relevant section of the [Kodiak documentation](https://documentation.kodiak.finance/protocol/islands). After whitelisting in the Berachain gauges, LPs will earn `$BGT`.
\*The % of `$BERA` added to backing and % awarded used to mint `$BREAD` is variable, and depends upon LP token staked. `$OHM`-`$BREAD` awards users the highest % of `$BERA` rewards # stBGT The operations of the stBGT Liquid Staking Token was acquired by BakerDAO from Stride ## Mechanics ### Overview * Unlike other LSTs, `stBGT` will not have staking. Withdrawal from legacy staking will be available, but no new staking will be enabled and there will be no staking APR. * Redemptions are live. Minting and redemption fees are both `5%`. * Protocol revenue from boosting, minting, redemptions, and `BREAD` usage will be focused on placing bribes for the [stBGT-BERA Reward Vault](https://hub.berachain.com/earn/0xcf77d23cfc561e34e3b6137c736ea5cb395bcda0/), and the [BakerDAO Debt Reward Vault](https://hub.berachain.com/earn/0xbe703c50c176336602aefe48c74e9cc15426db97/). * In addition, stBGT may *only* be minted via these Reward Vaults to make it a scarce asset ### Minting stBGT may only be minted via: 1\) Having active and eligible debt on BakerDAO 2\) LPing the [stBGT-BERA Kodiak island](https://app.kodiak.finance/#/liquidity/pools/0x8b161685135e9fbc5475169e1addc0f2c4b7c343?farm=0xcf77d23cfc561e34e3b6137c736ea5cb395bcda0\&chain=berachain_mainnet), and staking on the stBGT [app](https://bgt.bakerdao.io/earn). Underlying protocol `BGT` is strategically delegated to validators to optimize Boost APR.
### Redemption `stBGT` may be redeemed at any time for the underlying `BGT`, which is burned for `BERA` and awarded to the user. Redemption carries a `5%` fee. ## Relationship with Incentivized Borrowing `BGT` awarded to eligible users with BakerDAO debt, as outlined in [stBGT-Incentivized Debt](/stbgt-incentivized-debt) will be used to mint `stBGT`, and will be delivered as such. Merkl will be used as a means of distribution fo rewards to eligible users. # stBGT-Incentivized Debt ## Passive BGT rewards Addresses with active loan or loop positions will be eligible to earn passive BGT rewards. The only eligibility criteria is that the position must be opened - or an existing position extended - after block `5623025` Rewards will be awarded to users as stBGT via [Merkl](https://merkl.xyz/). ## Reward Calculation and Distribution Snapshots will be taken at regular intervals of user positions, and the following methodology applied to calculate the weight of each eligible user's rewards: ``` timeToExpiry = if(endDate > block.timestamp) {endDate - block.timestamp} else {0} weight = borrowed * sqrt(timeToExpiry) ```
# Contract Addresses Will be updated after contracts are deployed
NameAddress
BREAD0x0003eedfdd020bf60d10cf684abac7c4534b7ead
iBREAD0x3bd4322055bbebf2a93999475f30e06b6d205beb
stBGT0x2CeC7f1ac87F5345ced3D6c74BBB61bfAE231Ffb
stBGT Engine0x0daA26Bd6c6109C632a228B9AED407A838BD885A
stBGT Manager0xDcc5E38f0207757604c5a4925A870dE9554395b4
# The Bakery The Bakery is the suite of Bread ecosystem products which have been built, but are not yet supported in the app User Interface. Support will be built as and when required. # Pooled Baking Master baker-authorized `Baker`contracts can pool deposits to bake `$BREAD` . This is the same technical mechanism that's used in the "Pre-Deposit Vaults". Pooled Baking via `Baker` contracts is the **only** way to mint new `$BREAD` after the maxBake cap has been hit. * This allows users to all get the same price * The pooled baking contract can execute the baking according to predetermined rules, such as time, target amount of `$BERA` raised, or others * Pooled baking can also implement WLs * In the future, Pooled Baking may be incentivized via various mechanisms (e.g. RFA)
# BreadBox Allows users to lock any ERC-20 token within the `$BREAD` contract for a `1%` fee that contributes to `$BREAD`'s backing. In the future, Panda Factory tokens may lock LP tokens of graduated tokens using this mechanism.
# Auto TWAP This functionality allows for any ERC-20 token to be added and contribute to the backing of `$BREAD`. A fixed bounty in `$BERA` terms is requested in order to sweep all the ERC-20 balances in the Bread contract. As balances grow, arbitrageurs pay the `$BERA` bounty in order to claim the ERC-20 tokens. Raised `$BERA` is added to the backing. This functionality enables `$BREAD` to receive rewards and revenues in the form of `$HONEY`, `$OHM` or other ERC-20 tokens to grow its backing.
# Baking via farming This functionality allows for users to bake $BREAD by depositing LP tokens with whitelisted Berachain Rewarrd Vaults. LP tokens are staked
# iBREAD `$iBREAD` can be created by staking `$BREAD`, and will have an elastic supply. The ratio of iBREAD/BREAD varies. It's main functionality will be within [GameFi](/the-bakery/gamefi)
# GameFi Participate in games of chance funded with `$iBREAD` liquidity. Users will be able to place bets in games with `$BERA` - if they win, new `$iBREAD` is minted to fulfill the bet, and losses are socialized among `$iBREAD` participants, decreasing the value of `$iBREAD`/`$BREAD`. If they lose, their `$BERA` is used to mint `$BREAD`, stake into `$iBREAD` and the `$iBREAD` is burned, increasing `$BREAD`/`$iBREAD`. # Audits ### BREAD {% embed url="" %} ### stBGT {% embed url="" %} {% embed url="" %} # BakerDAO Subgraph The BakerDAO subgraph indexes all activity relating to `BREAD`. It tracks loans, collateral, liquidations, and user incentive weights. If you need to query loan data, calculate user rewards, or analyze protocol metrics, this is your go-to data source. ``` https://api.goldsky.com/api/public/project_clpx84oel0al201r78jsl0r3i/subgraphs/bakerdao-subgraph/1.0.9/gn ``` ### Key Concepts #### User Weights & Incentives The protocol calculates user weights based on a simple formula: your borrowed amount multiplied by the square root of days remaining on your loan. This rewards longer-term positions more heavily than short-term ones. ``` userWeight = borrowedTimesSqrtDays / totalBorrowedTimesSqrtDays ``` Only loans created after block `5623025` are eligible for incentives. #### Snapshot System The subgraph creates automatic snapshots to preserve historical data: * **User snapshots**: Created every hour for all active users * **Global snapshots**: Created every 4 hours for protocol-wide metrics * **Real-time data**: Query main entities directly for current state These snapshots are essential for reward calculations and historical analysis. ### Core Entities #### User Tracks individual user data and loan history. ``` type User { id: ID! # User's wallet address activeLoan: Loan # Current active loan (if any) totalLoansCreated: BigInt! # Lifetime loan count totalCollateralProvided: BigInt! # Total collateral ever provided totalBorrowed: BigInt! # Total ever borrowed userWeight: BigDecimal! # Current incentive weight (0-1) lastUpdated: BigInt! # Last activity timestamp } ``` #### Loan Individual loan positions with time-based calculations. ``` type Loan { id: ID! # User's wallet address user: User! # Link to user collateral: BigInt! # Current collateral amount borrowed: BigInt! # Current borrowed amount endDate: BigInt! # When loan expires numberOfDays: BigInt! # Original loan duration isActive: Boolean! # Whether loan is still active loanType: String! # "BORROW" or "LOOP" daysRemaining: BigInt! # Days until expiration borrowedTimesSqrtDays: BigInt! # Borrowed * √(days remaining) borrowedTimesDays: BigInt! # Borrowed * days remaining isEligibleForIncentives: Boolean! } ``` #### UserLoanSnapshot Hourly snapshots of user loan data for historical analysis. ``` type UserLoanSnapshot { id: ID! # "userAddress-hourTimestamp" user: User! timestamp: BigInt! # Snapshot time period: BigInt! # timestamp / 3600 (hour number) hasActiveLoan: Boolean! # Whether user had active loan collateral: BigInt! # Collateral at snapshot time borrowed: BigInt! # Borrowed amount at snapshot time daysRemaining: BigInt! # Days remaining at snapshot time borrowedTimesSqrtDays: BigInt! # Weight calculation component borrowedTimesDays: BigInt! # Weight calculation component userWeight: BigDecimal! # Weight at snapshot time isEligibleForIncentives: Boolean! } ``` #### GlobalStats Protocol-wide statistics (single entity with ID "global\_v2"). ``` type GlobalStats { currentActiveLoans: BigInt! # Number of active loans currentTotalCollateral: BigInt! # Total collateral locked currentTotalBorrowed: BigInt! # Total amount borrowed totalBorrowedTimesSqrtDays: BigInt! # Sum of all user weights totalLiquidations: BigInt! # Lifetime liquidations incentiveEligibilityBlock: BigInt! # Block when incentives started lastToastDate: BigInt! # Last liquidation processing date lastUpdated: BigInt! # Last time stats were updated lastUserSnapshotHour: BigInt! # Tracking for hourly snapshots lastGlobalSnapshotPeriod: BigInt! # Tracking for 4-hour snapshots } ``` #### ActiveUser Tracks which users currently have active loans. ``` type ActiveUser { id: ID! # User's wallet address user: User! # Link to user entity addedAt: BigInt! # When user became active lastValidated: BigInt! # Last time status was confirmed } ``` ### Common Queries #### Get Current User Weights and Positions ``` query GetAllUserWeights($block: Int) { users( where: { userWeight_gt: "0" } block: { number: $block } first: 1000 ) { id userWeight activeLoan { collateral borrowed daysRemaining borrowedTimesSqrtDays isEligibleForIncentives } totalCollateralProvided totalBorrowed } } ``` #### Get Protocol Statistics ``` query GetProtocolStats($block: Int) { globalStats(id: "global_v2", block: { number: $block }) { currentActiveLoans currentTotalCollateral currentTotalBorrowed totalBorrowedTimesSqrtDays totalLiquidations } } ``` #### Get Active Loans ``` query GetActiveLoans($block: Int) { loans( where: { isActive: true } block: { number: $block } first: 1000 ) { id user { id userWeight } collateral borrowed daysRemaining loanType isEligibleForIncentives } } ``` #### Historical User Weight Analysis ```javascript query GetUserWeightHistory($userId: String!, $fromTime: Int!, $toTime: Int!) { userLoanSnapshots( where: { user: $userId timestamp_gte: $fromTime timestamp_lte: $toTime } orderBy: timestamp orderDirection: asc ) { timestamp userWeight borrowed collateral daysRemaining hasActiveLoan } } ``` # Using the Bake/Burn Page ## Baking and Burning $BREAD The Bake page is your gateway to acquiring $BREAD tokens and redeeming them for $BERA. Let's explore how to use this functionality effectively. #### Baking (Minting) $BREAD Baking allows you to mint new $BREAD tokens by depositing $BERA into the protocol.

Baking BREAD Interface

**Step-by-Step Process:** 1. **Enter Amount**: Input the amount of $BERA you wish to convert to $BREAD. * You can use the "HALF" and "MAX" buttons to quickly set amounts based on your available $BERA balance. 2. **Review Exchange Rate**: The interface shows the current exchange rate between $BERA and $BREAD. * This rate will only increase over time due to the bonding curve mechanism. 3. **Review Fees**: A 2.69% fee is applied to each baking transaction. 4. **Confirm Transaction**: Click "Bake BREAD" to execute your transaction. **Example:** If the exchange rate is 1 BERA ≈ 0.949 BREAD and you input 1 BERA: * You'll receive approximately 0.924 BREAD * A fee of 0.0269 BERA will be taken #### Burning $BREAD Burning allows you to redeem your $BREAD tokens for $BERA from the protocol.

Baking BREAD Interface

**Step-by-Step Process:** 1. **Enter Amount**: Input the amount of $BREAD you wish to burn and redeem for $BERA. * Similarly, you can use "HALF" and "MAX" buttons for quick selection. 2. **Review Exchange Rate**: The current exchange rate between $BREAD and $BERA is displayed. 3. **Review Fees**: A 2.69% fee is applied to each burn transaction. 4. **Confirm Transaction**: Click "Burn BREAD" to execute your transaction. {% hint style="info" %} When you burn $BREAD, the fees still contribute to increasing the backing ratio, meaning the price of $BREAD in terms of $BERA will continue to rise regardless of whether users are baking or burning. {% endhint %} ## Baking and Burning FAQ #### Q: What happens if $BREAD price drops in USD terms? A: $BREAD is designed to be "up-only" against $BERA, not USD. The $BREAD/$BERA exchange rate will continue to improve regardless of market conditions, but the USD value can fluctuate based on $BERA's price. #### Q: Is there a limit to how much $BREAD can be baked? A: Yes, the protocol has a dynamic baking cap that is adjusted weekly based on demand, set by the Master Baker. The initial cap is `6.9M BREAD` #### Q: Why is there a fee for both baking and burning? A: The fees serve multiple purposes: 1. They create a mathematical guarantee that the $BREAD/$BERA exchange rate always improves 2. They fund protocol development and growth 3. They incentivize liquidity provision through bribes #### Q: What is the benefit of holding $BREAD instead of $BERA? A: Holding $BREAD gives you: 1. Exposure to the continuously improving exchange rate against $BERA 2. Access to the protocol's borrowing functionality 3. The ability to participate in the broader BakerDAO ecosystem #### Q: Can I lose money when baking or burning $BREAD? A: If you immediately bake and then burn $BREAD, you would incur both the baking fee and the burning fee (total of 5.38%). However, if you hold $BREAD long enough for the exchange rate to improve by more than 5.38%, you can offset these fees. #### Q: How does baking or burning affect the protocol as a whole? A: Both actions contribute to the protocol's health: * Baking increases the total supply and adds to the backing * Burning decreases the supply while still adding to the backing * Both actions improve the backing ratio per $BREAD token # Borrowing with $BREAD Collateral After acquiring $BREAD tokens, you can use them as collateral to borrow $BERA without selling your $BREAD. This allows you to maintain exposure to the appreciating value of $BREAD while accessing liquidity when you need it. {% hint style="info" %} **Important Note**: You can only have one active loan position at a time in BakerDAO, per wallet. If you already have a Standard loan, you cannot create an automated looped position (and vice versa) until you close your existing position {% endhint %} ## Standard borrowing (Borrow Against Bread) Standard borrowing enables you to use your existing $BREAD tokens as collateral to borrow $BERA. BakerDAO offers a uniquely high loan-to-value ratio of 99%, meaning you can borrow up to 99% of your $BREAD's value in $BERA. #### Key Benefits of Borrowing * **Access Liquidity Without Selling**: Maintain your exposure to $BREAD's appreciation while accessing $BERA * **No Market-Based Liquidations**: Loans cannot be liquidated due to market price fluctuations, you can only lose your collateral if you do not pay back a loan in time * **High Loan-to-Value Ratio**: Borrow up to 99% of your $BREAD's value * **Fixed Interest Upfront**: No surprise fees or compounding interest #### Borrowing Mechanics When you borrow using $BREAD as collateral: 1. Your $BREAD tokens are locked in the protocol as collateral 2. You receive $BERA tokens (minus interest) in your wallet 3. The loan has a fixed duration that you select (1 to 365 days) 4. You must repay the exact borrowed amount before the expiration date 5. Upon repayment, your $BREAD collateral is returned to your wallet ## Step-by-step borrowing guide #### 1. Navigate to the Borrow Page Access the "Borrow & Loop your asset" page from the main navigation menu. #### 2. Select Standard Borrowing Mode * On the Borrow & Loop page, you'll see two tabs at the top: "Borrow Against Bread" and "1 click Loop with Bera" * Ensure "Borrow Against Bread" tab is selected for regular borrowing
3\. Enter Borrow Amount * In the "You borrow" field, enter the amount of $BERA you wish to borrow * The interface displays your current "Max borrowable" amount, calculated as 99% of your $BREAD's value in $BERA * Use the "HALF" button to set the amount to half your maximum borrowable amount * Use the "MAX" button to set the amount to your full borrowable limit
#### 4. Set Loan Duration * Use the horizontal slider to select your desired loan duration (1 to 365 days) * You can also use the "MIN" and "MAX" buttons to quickly set the shortest or longest duration
#### 5. Review Complete Loan Details Before proceeding, carefully review all loan parameters displayed below the slider: * **Expiration Date**: The exact date and time when your loan must be repaid * **Collateral Required**: The amount of $BREAD that will be locked as collateral * **Loan Amount**: The actual amount of $BERA you're borrowing * **Interest Fee**: The total interest charged for your loan (paid upfront) * **Total Received (after fee)**: The net amount of $BERA you'll actually receive after interest deduction
#### 6. Confirm and Execute Transaction * Click the "Borrow" button at the bottom of the interface * Your wallet will prompt you to confirm the transaction * After confirmation: * Your $BREAD collateral will be locked in the protocol * The borrowed $BERA (minus interest fee) will be sent to your wallet ### Understanding Loan Terms & Conditions BakerDAO's borrowing mechanism has several unique characteristics that differentiate it from other DeFi lending protocols. #### Interest Rate Structure * **Upfront Interest Payment**: All interest is collected when the loan is initiated * **Interest Calculation**: `Interest Fee = Borrowed Amount × APR × (Loan Duration in Days / 365)` * **Base APR**: 6.9% annually * **Minimum Interest Fee**: The protocol enforces a minimum interest fee equivalent to the `burnFee - overCollateralizationAmount`. See [Interest Fees](/mechanics/interest-fees)for more details #### Loan Duration and Expiration * **Fixed-Term Loans**: All loans have a fixed duration set at creation (1 to 365 days) * **No Automatic Rollover**: Loans must be explicitly repaid or extended before expiration otherwise they are liquidated * **Midnight Cutoff**: Loan expiration is processed at 00:00 UTC on the expiration day ## Managing active loans Once you have an active loan, it will be displayed prominently in the "Active Position" section of the Borrow page.

Active Position Dashboard

When interacting with your active position, you have several management options: **Free Collateral** If your loan is over-collateralized (meaning you have more collateral locked than the minimum required for your loan amount), you remove some collateral, or you can increase your borrowed amount 1. Click on your active position to access management options 2. Select "Remove Collateral" option 1. Enter the amount of collateral you wish to remove 2. Confirm the transaction 3. Select "Increase Borrow" option 1. Enter the additional amount you wish to borrow 2. Confirm the transaction {% hint style="success" %} As $BREAD rises in $BERA value, more free collateral will become available to users over time {% endhint %} **Extend Loan Duration** To extend your loan's expiration date: 1. Click the "Extend" button on your active position 2. Select additional days to extend your loan 3. Review the additional interest fee required 4. Confirm the transaction to extend your loan ## Borrowing FAQ #### Q: How much can I borrow against my $BREAD? A: You can borrow up to 99% of your $BREAD's value in $BERA. For example, if your $BREAD is worth 10 $BERA, you can borrow up to 9.9 $BERA. #### Q: Can my loan be liquidated if the price of $BREAD drops? A: No. Unlike most DeFi protocols, Baker DAO loans cannot be liquidated due to price fluctuations. The only way to lose your collateral is by failing to repay your loan by the expiration date. #### Q: Can I repay my loan early? A: Yes, you can repay your loan at any time before the expiration date. However, since interest is paid upfront, there's no interest savings for early repayment. #### Q: What happens if I don't repay my loan in time? A: If you fail to repay by the expiration date, your entire $BREAD collateral will be burned during the daily toast process at midnight UTC. #### Q: Can I extend my loan if I need more time? A: Yes, you can extend your loan by clicking the "Extend" button on your active position. You'll need to pay additional interest for the extension period. #### Q: Can I have multiple loans at once? A: No, you can only have one active loan position at a time. You must close your existing loan before opening a new one. But you can add to your borrowed amount if you are still within your max borrowable. # How to use Looping Leverage, or "Looping," is an advanced feature that allows you to multiply your exposure to $BREAD using borrowed $BERA. This powerful function automates what would otherwise require multiple transactions, helping you create a significantly larger $BREAD position with minimal upfront capital. {% hint style="warning" %} You can only have one active loan position at a time. If you already have a Standard loan, you cannot create a Leverage position until you close your existing loan (and vice versa). Vault depositors that wish to start looping must use $BERA, or open a $BERA loan and send it to another address and use looping from there {% endhint %} ### Understanding the Looping Mechanism
What is Looping? Looping allows you to amplify your exposure to BREAD tokens by using a single transaction to create a leveraged position. Unlike traditional borrowing that requires you to provide collateral first, looping lets you start with just $BERA and build a leveraged $BREAD position instantly. ## How to create a looped position #### 1. Navigate to the Leverage Interface * Go to the ["Borrow & Loop your asset"](https://bakerdao.io/borrow) page from the main navigation * Select the "1 Click Loop with Bera" tab at the top of the interface (next to "Borrow against Bread")
#### 2. Enter Your Target Amount * In the input field labeled "Borrow instantly, no collateral," enter the total target amount of $BERA you want to create the leveraged (looped) position
{% hint style="info" %} Note: you are NOT entering "how much you want to spend" but rather the "target position size." This is similar to specifying "I want to be long 10,000 BERA worth of BREAD on 25-100x leverage" {% endhint %} #### 3. Set Your Desired Loan Duration * Use the horizontal slider to select your desired loan duration (1 to 365 days) * You can also use the "MIN" and "MAX" buttons to quickly set durations * The front-end shows you the Borrow APR
{% hint style="info" %} Note: since there is a minimum interest fee, it may not make sense to do loan duration shorter than 90 days {% endhint %} #### 4. Review Complete Position Details Before proceeding, carefully review all the position details displayed: * **Expiration Date**: When your leveraged position expires * **Recorded Borrow Amount**: The total amount of $BERA being borrowed * **Leverage Baking Fee**: The fee charged for using the leverage feature (typically 1.42%) * **Interest Fee**: The total interest charged on the borrowed amount * **Leveraged Position**: The total amount of $BREAD you'll receive, with effective leverage multiplier * **Total Payable**: The actual amount of $BERA you need to send in this transaction #### 5. Confirm and Execute Your Leverage Transaction * Click the "Loop" button at the bottom of the interface * Your wallet will prompt you to confirm the transaction * Once confirmed, the protocol will execute all the looping steps atomically * After processing, your leveraged position will appear in the "Active Position" section ## The technical process behind looping When you initiate a Loop transaction in BREAD Protocol, the contract performs a single mathematical calculation to create a leveraged position: 1. Takes your input `bera` amount and calculates the baking fee: * Leverage Baking fee (currently 1.42% of your $BERA) 2. Calculate `userBera` the amount of BERA usable for the leveraged position: * `userBera` = `bera` - `bakeFee` 3. Calculate `userBorrow` and `overCollateralizationAmount` based on 99% collaterization ratio: * `userBorrow` = `userBera` \* 99% * `overCollateralizationAmount` = `userBera` - `userBorrow` 4. Calculate `interest` based on loan duration and `userBorrow` * `interest` = `getInterestFee(userBorrow, numberOfDays)` 5. Under the hood, it creates a leveraged position in $BREAD as follows: * Mints $BREAD tokens with your input $BERA (minus fees) * Establishes a loan with your $BREAD tokens as collateral * All calculated and executed in a single, atomic transaction * The user needs to pay `bakeFee` + `interestFee` + `overCollaterizationAmount`
#### Example 1: Starting with 10,000 BERA (90-day duration) ``` Input: 10,000 BERA ↓ Fees: - bakeFee: 142 BERA ↓ userBera: 9,858 BERA userBorrow: 9,759.42 BERA overCollateralizationAmount: 98.58 BERA ↓ Interest rate: 6.9% * 3 / 12 = 1.725% (for 3 months) - interest: 168.35 BERA ↓ Total fees: bakeFee + interest = 310.35 BERA Total Bera Required: Total fees + overCollateralizationAmount = 408.93 BERA ↓ Total Leveraged Position (in BERA terms) = userBera = 9,858 BERA Implied Leverage (excluding fees): userBera / overCollateralizationAmount = 100x Implied Leverage (including fees): userBera / Total Bera Required = 9,858 / 403.93 = ~25x ``` The effective leverage is \~100x if you ignore fees, because it's a 99% LTV loan Inclusive of the bake fee and interest fee, the effective leverage is \~25x because your 403.93 BERA (bake fee + interest fee + overcollateralization amount) controls a BREAD position worth \~9,858 BERA. ## Looping FAQ #### Q: How much leverage can I achieve through Looping? A: The leverage before fees is always 100x (99% LTV). After fees, the leverage multiplier varies 25-30x, though this varies based on current protocol parameters and fees. The interface will show you the exact multiplier (e.g., "7.48 BREAD (24.56x)") before you confirm your transaction. #### Q: Can I extend the duration of a looped position? A: Yes, the same way you can extend a normal loan. #### Q: Is there a minimum amount required to use the Loop feature? A: No, just slightly more than dust is required. However, note that only 1 position can be active at a time, so if you open a very very small position and want to increase it via looping, you should close it first or use another wallet to take advantage of the discounted baking fee (1.42%) #### Q: Can I add more collateral to an existing leveraged position? A: No, and it does not make sense to - since $BREAD always rises relative to $BERA and interest is paid up front, there is never any need to add collateral #### Q: Can I close my leveraged position early? A: Yes, you can close your leveraged position at any time before the expiration date using either direct repayment with $BERA or the Flash Burn ("Burn Collateral" ) method. #### Q: What happens to my leveraged position if the value of $BERA drops in USD terms? A: Your position's USD value would decrease, but the $BREAD/$BERA ratio will continue to improve due to the protocol's design. Remember that Baker DAO ensures $BREAD only appreciates against $BERA, not necessarily against USD. #### Q: Is there a way to partially close a leveraged position? A: Yes, the 1-click looping method is simply a cost-efficient way to establish the position. Beyond that - it's the same as a normal borrow. #### Q: Can I have multiple leveraged positions simultaneously? A: No, you can only have one active loan position at a time, whether standard or leveraged. You must close your existing position before opening a new one. # Repaying Loans To repay your loan, click the "Close" button on your active position to open the repayment modal. There are 2 methods to repay loans: WIth $BERA, and with existing collateral. The latter option is beneficial when: * You don't have sufficient BERA in your wallet to repay the loan * You want to exit your BREAD position entirely * You prefer the simplicity of a single transaction to close your position * The current exchange rate makes it economically beneficial to convert your BREAD to BERA ## Repaying with $BERA This option allows you to repay your loan using `$BERA` tokens from your wallet.

Repay with BERA

**Step-by-Step Process:** 1. **Open Repayment Modal** * Click the "Close" button on your active position * The repayment modal will open with "Repay Bera" tab selected by default 2. **Verify Loan Details** * At the top of the modal, you'll see your current borrowed amount and expiration date 3. **Enter Repayment Amount** * In the "Amount" field, enter how much `$BERA` you wish to repay * You can choose to repay a partial amount or the full loan * Click the "FULL" button to automatically set the repayment to the entire borrowed amount 4. **Partial vs. Full Repayment** * **Partial Repayment**: Reduces your loan balance but doesn't recover your collateral * **Full Repayment**: Completely closes your loan position and returns all collateral 5. **Execute Repayment** * Click the "Repay" button at the bottom of the modal * Confirm the transaction in your wallet * Once processed, your loan balance will update (or position will close if fully repaid) ## Repaying with Existing Collateral (Flash Burn) This option allows you to repay your loan using your locked $BREAD collateral, without needing additional $BERA.

Repay with Collateral

**Step-by-Step Process:** 1. **Open Repayment Modal** * Click the "Close" button on your active position * Switch to the "Existing Collateral" tab in the repayment modal 2. **Review Collateral Details** * The interface displays your current collateral amount and its equivalent value in `$BERA` 3. **Understand the Flash Burn Mechanism** * Your $BREAD collateral will be burned (converted to $BERA) * A burn fee (2.69%) is deducted from the conversion * The resulting $BERA is used to repay your loan * Any excess value is returned to you as $BERA 4. **Confirm Repayment** * Click the "Repay" button at the bottom of the modal * Confirm the transaction in your wallet * Once processed, your loan will be closed and any excess value sent to your wallet {% hint style="danger" %} **Risk Warning**: Failure to repay your loan by the expiration date will result in the complete loss of all your collateral. There is no grace period or appeal process. Always monitor your loan expiration dates carefully. {% endhint %} ### Flash Burn Example ``` // Assume BREAD/BERA = 1.10 // I own 90.90 BREAD = 100 BERA worth of BREAD // I max borrow against it for 1 year // Max borrow possible is 99 BERA // Interest fee = 99 * 6.9% APR // Thus, borrow amount = 99 BERA and bera received = 92.169 BERA // Collateral = 100 BERA (worth of) BREAD = 90.90 BREAD // Assume BREAD/BERA rises to 1.20, and now I want to close my position // Option 1: close the loan normally. // I flash borrow (elsewhere, assume for 0 cost) and pay back 99 BERA // I receive 90.90 BREAD // I burn the BREAD for 90.90 * 1.20 = 109.08 BERA - 2.69% burn fee // I receive 106.145 BERA and pay back by flash borrow, I netted 106.145 - 99 BERA = 7.145 BERA // Option 2: I call flashBurn() // My entire BREAD collateral (90.90 BREAD) is burned // My collateral was worth 90.90 * 1.20 = 109.08 BERA // The fee is 109.08 * burnFee = 109.08 * 2.69% = 2.93 BERA // Remaining collateral in BERA after fee = 109.08 - 2.934 = 106.145 BERA // 106.145 BERA must be worth more than the borrowed amount (99 BERA) -> which it is // I get back collateral value - borrowed - fee = 106.145 BERA - 99 BERA = 7.145 BERA // Note this is the exact same outcome as Option 1 ``` # Terms and Conditions Sourdough Ventures IBC These Terms of Use, together with any documents and additional terms they expressly incorporate (collectively, these "Terms"), are entered into between Baker DAO ("Baker", "we", "our" or "us") and the person making use of Baker's services, including, but not limited to, the use of this website and smart contracts (hereinafter referred to as the "User", "you" or "your"). These Terms constitute a binding legal agreement between Baker and the User following such User's acceptance of such Terms. Within these Terms, words of any gender shall be held and construed to include any other gender, and words in the singular number shall be held and construed to include the plural unless the context otherwise requires. These Terms govern your access to and use of Baker's Protocol and Services. You must read the Terms carefully. By accessing, browsing or otherwise using Baker's Protocol or Services, or by acknowledging agreement to the Terms, you agree that you have read, understood and accepted all of the Terms and our Privacy Policy (the "Privacy Policy"), which is incorporated by reference into the Terms. By accessing or using Baker's Protocol or Services, the User accepts and agrees to be bound by and comply with these Terms, including the mandatory arbitration provision in Section 18. If the User does not agree to these Terms, such User should not access or use Baker's Protocol or Services. The User must be able to form a legally binding contract online either as an individual or on behalf of a company, as outlined in Section 2. Baker appeals to the User to carefully review the disclosures and disclaimers set forth in Section 14 in their entirety before using any software developed by Baker. Section 14 provides important details about the legal obligations associated with the User's use of the Baker open-source software. By accessing or using Baker's Protocol or Services, the User agrees that Baker does not provide execution or clearing services of any kind and is not responsible for executing or clearing transactions automated through the Baker open-source software. 1. KEY DEFINITIONS For the purpose of these Terms, the following capitalized terms shall have the following meanings: "Affiliate" means, with respect to a party to these Terms, any legal entity that, directly or indirectly controls, is controlled by, or is under common control with Baker. "Applicable Law" means any domestic or foreign law, rule, statute, regulation, by-law, order, protocol, code, decree, or other directive, requirement or guideline, published or in force which applies to or is otherwise intended to govern or regulate any person, property, transaction, activity, event or other matter, including any rule, order, judgment, directive or other requirement or guideline issued by any Governmental Authority having jurisdiction over Baker, the User, the Protocol or the Services, or as otherwise duly enacted, enforceable by law, the common law or equity. "BREAD" means the token of the Baker DAO Protocol that may be used for the following purposes: i) baking and burning; ii) borrowing BERA Tokens by providing BREAD as collateral; iii) leverage; and iv) staking purposes to receive rewards. "HONEY" means the USD-pegged stablecoin used within the Protocol. “OHM” means the algorithmic stablecoin used within the Protocol. "Protocol" means the Baker website, smart contracts, and associated services that enable the creation, burning, borrowing, leveraging, and staking. "Services" means the Products offered by Baker as accessible through the Protocol. "Product" means any product offered through the Services and available in or through the Protocol, including but not limited to Baker Vaults and liquidity pools. 1. PROTOCOL OVERVIEW The Protocol enables: * Minting and burning of BREAD; * Borrowing BERA Tokens by using BREAD as collateral; * Use the borrowed BERA Tokens to mint or purchase more BREAD; * Repeat the process outlined in point (iii), referred to as Looping; * Open one-click leverage positions; * Liquidity Provision in the Kodiak Island, by staking the LP Token to earn rewards; * Earn farming rewards by staking the LP Token into Kodiak Sweetened Island; * Auto TWAP functionality that enables any ERC-20 token to be added and contribute to the backing of BREAD; * Minting iBREAD Token by staking BREAD; * Pooling of deposited assets to mint BREAD; * Allows users to lock any ERC-20 token within the BREAD contract for a pre-determined fee of 1% that contributes to the backing of BREAD. The Protocol operates through smart contracts deployed on the blockchain and requires no permission or authorization from Baker DAO to use. 1. ELIGIBILITY The following are conditions of access to the Portal, and each time you access the Portal, the User represents and warrants to us that: * The User is an individual that is 18 years of age or older, capable of forming a binding contract with us, and under no legal impediment or incapability; * If the User is acting on behalf of or through a company; the User is an authorised representative of the company and has the authority from that company to access the Portal and form a binding agreement with us on behalf of that company; * The User is not identified as a "Specially Designated National" by the US Office of Foreign Assets Control or otherwise subject to any sanctions or restrictions which may affect our ability to provide the User with our Services; * The User has the full power and authority to agree to these Terms and to use any Service offered by Baker through the Portal; * The User has read these Terms prior to using any Service, and that you are solely responsible for your trading or non-trading actions and have had the opportunity to take any legal, financial, accounting or other advice that you deem appropriate prior to accessing the Portal or using any of the Services; * The User will only utilise legally obtained digital assets that belong to the User, and that the User has full legal and beneficial title to any such assets at the time the User utilises them; * The User is not located in, or a resident of, any Restricted Territory (as defined below) and has not used any technical means (including a VPN) to misrepresent its geographical location to access the Portal from any Restricted Territory; and * The User is acting for its own account as principal and not as trustee, agent or otherwise on behalf of any other persons. *Your access to the Portal and any Services may be restricted based on your jurisdiction or geographical location. You must not use the Product or the Portal if you are located in or a citizen or resident of any state, country, territory, or other jurisdiction in which use of the Portal or the Services would be illegal or otherwise violate any applicable law (a “Restricted Territory”).* *The fact that the Portal is accessible in a Restricted Territory or that the Portal allows the use of the official language of a Restricted Territory, or a language commonly used in a Restricted Territory must not be construed as a license to use the Portal in such a Restricted Territory.* *We unconditionally reserve the right to restrict access to any Restricted Territory and may implement technical controls to prevent access to the Portal or any Services from any Restricted Territory. No services are offered to persons or entities who reside in, are citizens of, are located in, are incorporated in, or have a registered office in any Restricted Territory, which include, without limitation the following: (a) Belarus, Cuba, Democratic People’s Republic of Korea (DPRK), Democratic Republic of Congo, Iran, Lebanon, Libya, Mali, Myanmar, Nicaragua, Russia, Somalia, South Sudan, Sudan, Syria, the following regions of Ukraine: Crimea, Donetsk and Luhansk, or any other country or region that is the subject of comprehensive country-wide or region-wide or economic sanctions by the Financial Action Task Force, United Nations, United States of America, the European Union or the United Kingdom; and (b) United States of America, the United Kingdom, Canada, and the People’s Republic of China.* *If you are a resident or citizen of or otherwise are located or incorporated in, or have a registered office in any Restricted Territory, do not use Baker’s Portal or Services or attempt to use a virtual private network (VPN) or other technology to circumvent the restrictions set forth herein. Use of a VPN to access Baker’s Portal or Services is expressly prohibited.* *You acknowledge and agree that you will not use a VPN or similar technology to access or use Baker’s Portal or Services in any way. We reserve the right to restrict or discontinue your access to and use of the Portal and Services if we know or have reason to suspect you are using a VPN for such access or use.* 1. MODIFICATIONS TO THESE TERMS In our sole discretion, we reserve the right to modify these Terms from time to time. If modifications are made, Baker will provide the User with notice of such changes by providing a notice through our Services or updating the date at the top of these Terms. Unless we say otherwise in our notice, all such modifications are effective immediately, and your continued use of our Services after we provide such notice will be construed as a consensual confirmation of the notified changes. Where the User does not agree with the modified Terms, such User is to cease from using Baker’s Services at once. 1. SERVICES Protocol Overview Baker DAO is a decentralized, permissionless protocol that combines token economics, collateralized lending, leverage, and Proof-of-Liquidity into a single cohesive financial ecosystem. The Protocol operates through smart contracts deployed on the blockchain and requires no authorization from Baker DAO for use. The User acknowledges that Baker does not custody, control, or have access to User funds at any time. Minting and Burning Services The Protocol enables Users to mint and burn BREAD Token(s) through the smart contract under the following conditions: * Minting Process (referred to as ‘Baking’) * Users may mint BREAD by depositing BERA stablecoins into the protocol’s smart contract * A fee of 2.69% is applied to each minting transaction, increasing the BERA backing per circulating unit of BREAD * A baking cap is determined each week. If the cap was reached in the previous week, the baking cap increases by 50%, allowing for new BREAD minting. If the cap was not reached, then it remains unchanged * Users receive BREAD minus fees * The quantity of tokens received is determined by a 2.69% underlying fee * Burning Process: * Users may burn BREAD to redeem BERA at any time * A fee of 2.69% is applied to each redemption * The fees are distributed to the BERA backing, PoL bribes, and treasury in the same ratio as baking fees Trading Services The Protocol provides Loans, Leverage and Staking functionalities: * Loans: * Users can borrow up to 99% of their BREAD’s value in BERA * Interest rates are calculated on a linear scale with an origination fee of 0.1%, and an APR of 6.8%. Interest is collected up front, upon initiation of a loan * If a loan defaults, then the BREAD collateral is burned * Since loans are over-collateralised, burning the collateral causes the ratio of BERA per BREAD to increase * BREAD collateral from liquidated positions are burned collectively, every day, at 00:00 UTC * Leverage: * Users can borrow BERA against their BREAD, use the borrowed BERA to mint or buy more BREAD, and repeat this process called looping * Baker DAO interface facilitates looping in one transaction, making it quick and simple to open and unwind leveraged positions * The BREAD minting fee is discounted from 2.69% to 1.25% when opening leveraged positions * If a leverage position defaults, then the BREAD collateral is burned, causing the ratio of BERA per BREAD to increase. BREAD collateral from liquidated positions are burned collectively, every day, at 00:00 UTC. * Liquidity providers receive LP tokens representing their share of the pool * LP tokens entitle holders to a proportional share of trading fees * Liquidity can be withdrawn by burning LP tokens * Staking: * Users provide liquidity in the Kodiak Island, and can stake the LP token to earn rewards * Kodiak Islands are ERC-20 wrapped Kodiak V3 positions that enable simplified liquidity provision through a fungible token interface * When users add liquidity to an Island, they receive Kodiak Island tokens representing their proportional ownership of the underlying Kodiak V3 position Secondary Services The Protocol enables various functionalities through the following mechanisms: * Auto TWAP: * Allows for any ERC-20 token to be added and contribute to the backing of BREAD * A fixed bounty in BERA terms is requested in order to sweep all the ERC-20 balances in the Bread contract * As balances grow, arbitrageurs sweep the balances and pay BREAD with BERA, which is added to the backing * This functionality enables BREAD to receive rewards and revenues in the form of HONEY, OHM, or other ERC-20 tokens to grow its backing * iBREAD * Allows for the creation of iBREAD Token by staking BREAD * iBREAD has an elastic supply; * Main functionality of iBREAD rests within GameFi * Pooled Baking * Allows for master baker-authorised contracts can pool deposits to mint BREAD * Enables all users to get the same price * Can be used as a fundraising mechanism * Token Locker * Allows users to lock any ERC-20 token within the BREAD contract for a 1% fee that contributes to BREAD’s backing * In the future, Panda Factory tokens may lock LP tokens of graduated tokens using this mechanism Gas Fees and Transaction Costs Users are responsible for all blockchain transaction fees required to interact with the Protocol. Baker DAO has no control over and does not receive any portion of these network fees. Protocol Restrictions Baker DAO reserves the right to restrict access to the Protocol interface in certain jurisdictions. However, as an open-source protocol, the underlying smart contracts remain accessible and permissionless. Conditions and Restrictions Baker DAO may, at any time and in its sole discretion, restrict access to the Protocol interface or impose conditions upon its use, with or without prior notice. The Protocol smart contracts, being immutable and decentralized, will continue to function regardless of interface availability. No Broker, Legal or Fiduciary Relationship Baker DAO is not your broker, lawyer, intermediary, agent, or advisor and has no fiduciary relationship or obligation to you regarding any decisions or activities that you effect when using the Protocol. No communication or information provided by Baker DAO is intended as, or should be construed as, advice. 1. PROTOCOL RISKS * Smart Contract Risk * The Protocol smart contracts may contain bugs or vulnerabilities * Smart contracts are immutable once deployed * You acknowledge and accept all risks associated with smart contract usage * Financial Risk * Asset prices are volatile and subject to market conditions * No guarantee of profit or return on investment PROTOCOL CONSTRAINTS Transaction Ordering All protocol operations execute in the order they are confirmed on the blockchain. Users acknowledge that transaction timing and network conditions may affect execution outcomes. Price Limitations The Protocol enforces the dynamic baking cap and master baker. Users acknowledge that attempting transactions that would in certain instances not fall under imposed whitelists by the master baker will fail. Technical Requirements Users must maintain sufficient blockchain network tokens to cover transaction fees and must interact with the Protocol through properly formatted transaction calls. Users acknowledge that incorrect transaction formatting may result in failure or unintended outcomes. 1. CYBERSECURITY RISKS * SMART CONTRACT SECURITY The Protocol's smart contracts may contain vulnerabilities, bugs, or other issues despite security audits and testing. Users acknowledge that such issues could result in the loss of functionality, assets, or other value. Smart contracts are immutable once deployed, and Baker DAO cannot modify or update them. * PRIVATE KEY SECURITY Users are solely responsible for securing the private keys associated with their blockchain addresses. Loss or compromise of private keys will permanently and irreversibly deny access to a User's assets and positions within the Protocol. Baker DAO cannot restore access to or recover any assets controlled by lost private keys. * NETWORK SECURITY The Protocol operates on Berachain that may be subject to various attacks, including but not limited to: * Network congestion or denial of service conditions * Consensus failures or chain reorganizations * Block producer collusion or malicious behavior * Network forks or other technical changes Users acknowledge that such events may affect transaction execution, asset prices, or Protocol functionality. * ORACLE SECURITY The Protocol may rely on external data sources and oracle systems for asset price information and other critical data. These systems may experience technical failures, manipulation, or other issues that could affect Protocol operations. Users acknowledge that oracle malfunctions could result in incorrect asset valuations or Protocol actions. * INTERFACE SECURITY While Baker DAO implements security measures in its user interface, Users acknowledge that: * No internet-based system is entirely secure * Communications may be intercepted or modified * Malicious actors may attempt to trick Users into approving harmful transactions * Frontend interfaces may experience technical issues or downtime TRANSACTION SECURITY Users acknowledge that blockchain transactions are: * Irreversible once confirmed * Public and visible to all network participants * Subject to potential front-running or manipulation * Dependent on network conditions for confirmation time and fees 1. DIGITAL ASSET RISKS * VALUE VOLATILITY Digital assets, including BREAD, and LP tokens, may experience significant price volatility. Users acknowledge that asset values can change rapidly and substantially, potentially resulting in partial or total loss of value. Past performance does not indicate future results. * LIQUIDITY RISKS Users acknowledge that digital asset markets may experience: * Insufficient trading volume or liquidity * Wide bid-ask spreads * Significant price impact from large trades * Temporary or permanent loss of liquidity * Inability to exit positions at desired prices TECHNICAL RISKS Digital assets are subject to technical risks including: * Smart contract bugs or vulnerabilities * Blockchain network failures or congestion * Oracle malfunctions or manipulations * Protocol parameter changes through governance * Integration failures with external systems REGULATORY RISKS The regulatory status of digital assets is evolving and uncertain. Users acknowledge that regulatory changes may: * Affect the legality or permissibility of certain assets * Impact the ability to trade or transfer assets * Require identity verification or reporting * Result in Protocol modifications or restrictions * Lead to the termination of certain Protocol features MARKET OPERATION RISKS Users acknowledge that digital asset markets may be subject to: * Market manipulation or abuse * Insider trading or information asymmetry * Coordinated trading behavior * Technical trading issues or errors * Sudden changes in market conditions SYSTEMIC RISKS The interconnected nature of digital asset protocols creates systemic risks: * Cascading failures across protocols * Contagion from external market events * Dependencies on third-party services * Network-wide technical issues * Market-wide liquidity crises Users acknowledge that the risks described in Sections 5 and 6 are not exhaustive, and additional risks may exist or emerge. Users should carefully evaluate their financial situation and risk tolerance before using the Protocol. 1. LIMITATION OF LIABILITY * MAXIMUM LIABILITY LIMIT To the maximum extent permitted by applicable law, in no event shall Baker DAO, its affiliates, or any of their respective officers, directors, agents, employees, or representatives (collectively, the "Indemnified Parties") be liable for any indirect, punitive, incidental, special, consequential, or exemplary damages, including without limitation: * Loss of profits, revenue, data, use, goodwill, or other intangible losses * Damages relating to any loss of access to or use of the Protocol * Damages relating to any conduct or content of any third party using the Protocol * Damages relating to any communication failures or unauthorized access to user accounts * Damages relating to any bugs, viruses, or other malicious code that may be transmitted through the Protocol * Damages relating to any modification, suspension, or discontinuation of the Protocol * Damages relating to the accuracy, reliability, or completeness of any Protocol data or information This limitation applies regardless of the legal theory of liability, whether based on contract, tort, negligence, strict liability, or any other basis, and even if the Indemnified Parties have been advised of the possibility of such damages. \ PROTOCOL-SPECIFIC LIMITATIONS The Indemnified Parties shall not be liable for any damages or losses resulting from: * Smart contract vulnerabilities, bugs, or technical failures * Oracle malfunctions or price feed inaccuracies * Governance decisions or protocol parameter changes * Market conditions or trading activity * Regulatory changes or compliance requirements * Network congestion or transaction failures * Loss or compromise of private keys * Actions of other Protocol users or market participants AGGREGATE LIABILITY CAP In jurisdictions where the exclusion or limitation of liability for consequential or incidental damages is not permitted, the Indemnified Parties' liability shall be limited to the maximum extent permitted by law, and under no circumstances shall exceed the amount paid by you to Baker DAO in the past twelve months, if any. ESSENTIAL PURPOSE You acknowledge that this limitation of liability is an essential element of the agreement between you and Baker DAO and that the Protocol would not be provided without such limitations. 1. GOVERNING LAW These Terms shall be governed by and construed in accordance with the laws of the Republic of Panama, without regard to its conflict of law provisions. * INITIAL DISPUTE RESOLUTION Prior to initiating any formal dispute resolution process, Users agree to first contact Baker DAO directly to seek an informal resolution. Users must send a written notice describing the dispute to and allow thirty (30) days for Baker DAO to respond before proceeding with further dispute resolution measures. * BINDING ARBITRATION If a dispute cannot be resolved informally, all disputes arising out of or relating to these Terms or the use of the Protocol shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce by one or more arbitrators appointed in accordance with said Rules. The arbitration proceedings shall be conducted in English. * ARBITRATION PROCEDURES The arbitration shall be conducted: * By a single arbitrator, unless the amount in controversy exceeds $1,000,000 * In English language * In Panama City, Panama, unless otherwise agreed by both parties * In accordance with the ICC Rules of Arbitration * On a confidential basis CLASS ACTION WAIVER To the maximum extent permitted by applicable law, you hereby waive any right to participate in class action lawsuits or class-wide arbitration of any claims against Baker DAO. * INDIVIDUAL CAPACITY Any proceedings to resolve or litigate any dispute in any forum will be conducted solely on an individual basis. Neither you nor Baker DAO will seek to have any dispute heard as a class action or in any other proceeding in which either party acts or proposes to act in a representative capacity. * INJUNCTIVE RELIEF Notwithstanding the foregoing, Baker DAO may seek injunctive relief or other urgent legal remedies in any jurisdiction to enforce intellectual property rights or prevent imminent harm to the Protocol or its users. * TIME LIMITATION Any claim or dispute under these Terms must be filed within one (1) year after such claim or dispute arose, or the claim shall be forever barred. * COSTS OF ARBITRATION The costs of arbitration, including administrative and arbitrator fees, shall be shared equally by the parties, unless the arbitration award provides otherwise. Each party shall bear the cost of its own legal fees unless the arbitrator determines that one party shall bear the legal fees of both parties. * SEVERABILITY If any portion of this dispute resolution section is found to be unenforceable or unlawful, such portion shall be severed from these Terms, and the remainder of this section shall continue to be fully valid and enforceable. 1. ELECTRONIC NOTICES The User consents to receive all communications, agreements, documents, receipts, notices, and disclosures electronically (collectively, our "Communications") that Baker provides in connection with these Terms or any Services. The User agrees that Baker may provide Communications to him by posting them on the Portal or by emailing them to the User at the email address provided in connection with the User's use of the Services if any. The User should maintain copies of Baker’s Communications by printing a paper copy or saving an electronic copy. 1. CONTACT US Please send your feedback, comments, or requests for technical support to # Privacy Policy Sourdough Ventures IBC At Baker DAO (hereinafter ("Baker", "we", "our" or "us"), protecting the privacy of our users is a top priority. This Privacy Policy explains how we collect, use, and share information when you use our product, Baker DAO, accessible via our website and application (collectively referred to as the “Interface”). This privacy policy is intended to inform you about the processing of your personal data when you access and/or use our Interface (the “Privacy Policy”, the “Policy”). Therefore, it applies to all your interactions with us via our Interface. We advise you to read this Policy carefully to understand how we collect and process data and for which purpose. This Privacy Policy does not apply to any processing of data collected via channels other than the Interface (including any other services or applications provided by third parties). For those, we advise you to consult the corresponding and applicable privacy policies. We advise you to read this Policy carefully to understand our practices regarding your personal data and how we treat it. 1. Identity of the Data Controller We, Baker DAO, act as the data controller of your personal data. This means we decide “why” and “how” your personal data is processed in connection with the Interface and in line with this Policy. 1. Categories of Data We Process When you use the Interface, the only category of data we collect is limited to the following: * Blockchain Wallet Address: We collect your blockchain wallet address to facilitate the functionality of our Interface. 1. How and Why We Use Your Personal Data We process your personal data for the following purposes and on the following legal bases:
PurposeLegal BasisCategories of Data Concerned
To provide the Interface and perform maintenance workLegitimate interest to optimize our tools and ensure user satisfactionBlockchain wallet address
To communicate with you and answer your queries, and provide supportLegitimate interest to ensure proper communicationBlockchain wallet address
To maintain a secure environment and ensure securityLegitimate interest to ensure compliance with applicable laws and securityBlockchain wallet address
1. Transfer of Personal Data We do not transfer your personal data outside the jurisdictions where we operate except as otherwise provided for in this Policy. All data processing is conducted within our secure systems. 1. Data Retention Period We retain your personal data only for as long as necessary for the purposes specified in this Policy and in accordance with applicable laws. This means the retention periods may vary depending on the purpose of the processing. When determining the appropriate retention period, we consider the category and amount of personal data, potential risks and harm, specific processing purposes, availability of alternative means, and applicable legal requirements. 1. Your Rights In accordance with applicable personal data protection regulations, including the GDPR, you have the following rights: access, rectification, deletion, objection, restriction of processing, and data portability of your personal data. Please note that some of these rights are subject to specific conditions. If your situation does not meet these conditions, we may not be able to respond to your request. We will inform you of the reasons for any refusal. * Right of access: You may request access to your personal data at any time. * Right of rectification: You have the right to ask us to rectify any inaccurate or incomplete personal data. * Right to erasure / to be forgotten: You can ask us to delete your personal data if it is no longer necessary for the processing. * Right to restriction of processing: You may request that we restrict the processing of your personal data on grounds relating to your particular situation. * Right to data portability: You may request portability of the personal data you have provided us with. * Right to object: You may object at any time to our processing of your personal data. * Right to withdraw consent: You have the right to withdraw consent at any time for processing based on consent. Residents of the EEA (European Economic Area) If you are a resident of the European Economic Area (“EEA”), you have certain rights and protections under the law regarding the processing of your personal data. 1. Legal Basis for Processing If you are a resident of the EEA, when we process your personal data we will only do so in the following situations: We need to use your personal data to perform our responsibilities under our contract with you. We have a legitimate interest in processing your personal data. For example, we may process your personal data to send you marketing communications, to communicate with you about changes to our Services, and to provide, secure, and improve our Services. You have consented to the processing of your personal data for one or more specific purposes. Data Subject Requests If you are a resident of the EEA, you have the right to access personal data we hold about you and to ask that your personal data be corrected, erased, or transferred. You may also have the right to object to, or request that we restrict, certain processing. If you would like to exercise any of these rights, you can contact us as indicated below. Questions or Complaints If you are a resident of the EEA and have a concern about our processing of personal data that we are not able to resolve, you have the right to lodge a complaint with the data privacy authority where you reside. For contact details of your local Data Protection Authority, please see: . Contact Us If you have any questions regarding the processing of your personal data under this Policy, including exercising your rights, contact us by email at Changes to this Privacy Policy We periodically review this Policy to ensure compliance with applicable data protection regulations. Updates will be posted on this page. We encourage you to review this Policy regularly. Any modifications will take effect when posted or on the specified effective date. Your continued access and use of the Interface indicate your acknowledgment and acceptance of the updated Privacy Policy.