> For the complete documentation index, see [llms.txt](https://navofamily.gitbook.io/navo-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://navofamily.gitbook.io/navo-docs/rebound.md).

# Rebound

**A losing trade can still be part of building something bigger.**

Traders bring markets to life. Their contribution does not disappear when a position closes at a loss.

We are introducing **Rebound**: **USDC through Rebound Cash** buffers eligible losses, while **NAVO rewards through Rebound Mint** give traders a continuing stake in the protocol they help build.

These are the current design and test parameters as of November 6, 2026. Final configuration and changes will identify their effective source block.

## Two rewards from one eligible loss

Both rewards use the same eligible realized loss; traders can receive both.

| Reward       | Starting calculation for 100 USDC of eligible loss                      |
| ------------ | ----------------------------------------------------------------------- |
| Rebound Cash | 10 USDC at the initial 10% rate                                         |
| Rebound Mint | Approximately 666,666.67 NAVO-equivalent at the initial conversion rate |

Funding and remaining issuance capacity can constrain awards. A NAVO quantity is not a USDC valuation or a promise of recovery.

Rebound covers eligible trading **before and after graduation**. Supported markets and routes will be published.

## What counts as a loss?

Rebound starts with a realized sale loss, not an unrealized decline in a holding’s price.

The reference accounting approach uses weighted-average purchase cost. Multiple purchases update that average; a partial sale consumes the corresponding share of purchase principal. Trading fees and gas are excluded from eligible loss principal.

```
Realized loss = max(consumed purchase principal − gross sale proceeds, 0)
```

For HYPE-quoted markets, principal and sale proceeds are compared in HYPE before the eligible result is valued in USDC. A fall in HYPE’s dollar price alone does not create a token-trading loss.

The final accounting specification will define supported transfers, netting and valuation inputs. Untraceable tokens cannot create invented purchase costs; costs and rewards cannot be claimed twice.

## Rebound Cash

The Cash pool starts with **30,000 USDC**. At that starting balance, the compensation rate is **10% of eligible loss**: a 100 USDC eligible loss calculates to 10 USDC of Cash.

The rate decreases as the pool is used. The current test specifies these reference points:

| Pool balance | Cash rule                                                          |
| ------------ | ------------------------------------------------------------------ |
| 30,000 USDC  | Initial rate: 10%                                                  |
| 27,000 USDC  | After the initial 10% balance decline, the rate becomes 8%         |
| 10,000 USDC  | Protected balance; new Cash awards must not take the pool below it |

The intermediate rate schedule and response to replenishment remain to be specified. These points do not establish a linear curve or repeating steps.

The available pool balance excludes Cash already committed to finalized but unclaimed rewards. The 10,000 USDC protected balance must hold after allocating a block’s new rewards; waiting to claim must not make the same funds available twice.

The pool receives **10% of collected trading-fee revenue**: 1 USDC per 1,000 USDC traded at the standard 1% fee, once funds reach the pool. This funding share is separate from the trader’s compensation rate. See [Fees](https://navofamily.gitbook.io/navo-docs/launchpad/fees).

## Rebound Mint

The initial conversion is **0.00015 USDC of eligible loss per NAVO**. The rate decreases as cumulative platform volume grows.

Let:

* `L` be the trader’s eligible loss in USDC.
* `V` be cumulative verified platform trading volume in USDC through the previous finalized block.
* `n` be the number of completed 1 million USDC increments above 5 million USDC.

```
n = floor(max(V − 5,000,000, 0) / 1,000,000)
Mint reward = L / 0.00015 × 0.98^n
```

The first 5 million USDC uses the starting rate. Each **completed** additional million cuts the preceding rate by 2%; the first cut applies at 6 million. Volume counts qualifying economic trades once across eligible markets before and after graduation.

| Opening cumulative volume | Rate multiplier | NAVO-equivalent for 100 USDC eligible loss |
| ------------------------- | --------------- | ------------------------------------------ |
| Below 6 million USDC      | 1               | 666,666.67                                 |
| 6 million USDC            | 0.98            | 653,333.33                                 |
| 7 million USDC            | 0.9604          | 640,266.67                                 |

Examples are rounded; settlement uses published token precision. Lower cumulative volume preserves a higher rate. Time alone does not change it.

**Rebound Mint has a lifetime ceiling of 500 million NAVO.** Burning NAVO does not restore that capacity. The approximate first-month issuance objective is an estimate, not a deadline requiring unused tokens to be distributed.

## B-token rewards and NAVO redemption

Mint rewards are initially issued as **B-token**, redeemable **1:1 for NAVO** after the configured redemption time: 1,000 B-token redeems for 1,000 NAVO.

The exact opening time and B-token transferability remain to be specified. Redemption does not create a second reward or increase the lifetime Mint allowance.

## Distributed together, calculated block by block

Rebound rewards are distributed in batches. Inside each batch, finalized source blocks are processed in ascending height.

1. At the start of a block, use the preceding block’s closing pool balance and cumulative volume to determine that block’s coefficients.
2. All eligible trades in the same block use those same opening coefficients.
3. Record the block’s actual Cash awards, Mint rewards and verified trading volume.
4. Use the resulting closing state to calculate the next block’s coefficients.

If a block takes cumulative volume from 5.9 million to 6.1 million USDC, its trades keep the opening Mint rate. The following block uses the 0.98 multiplier. A user’s claim time does not change which source block determines the rate.

Published block records should make the calculation reproducible: eligible loss, opening balances and volume, applied coefficients, actual awards and closing state. Cash remains subject to available funds and the protected balance; Mint remains subject to its lifetime ceiling.


---

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