Energy Rental Market

Why is my Energy rental order liquidated?

Please remember to manually end your rental on time. Otherwise, the liquidation mechanism will be triggered. All or part of your security deposit will be liquidated according to the Energy you actually used and distributed to liquidators as rewards.

Generally, all of your security deposit will be returned when the rental is ended. However, in the following scenarios, part of your security deposit will be deducted:

If you end your rental when the used Energy is not recovered to the original amount, your security deposit will be deducted accordingly. Security deposit deducted = (Energy used / Total Energy rented) / * Unit price for Energy rental * 0.5.

If you do not end your rental before expiration, the security deposit will be deducted based on the exceeded duration. And if your rental is liquidated, the liquidation fee will also be deducted from your security deposit.

For example, a user wants to rent 1,000,000 Energy for 3 days. Currently, 100,000 Energy costs 12 TRX every day for rental. If you choose to get 100,000 Energy by staking, 6,000 TRX will be required.

Rent = 12 TRX/Day * 1,000,000 / 100,000 * 3 Days = 360 TRX

Security deposit = 12 TRX * 1,000,000 / 100,000 + 40 TRX = 160 TRX

The following section describes common scenarios when the rental ends:

1. The user ends the rental early (no price fluctuation)

• Used Energy fully recovered: all security deposit will be returned (160 TRX)

• Used Energy recovered to 60% of the original amount: Security deposit to be returned = 160 TRX - 40% * 12 TRX * 1,000,000 / 100,000 * 0.5 = 136 TRX

2. The user ends the rental 12 hours (0.5 day) after expiration but is not liquidated (no price fluctuation)

• Used Energy fully recovered: Security deposit to be returned = 160 TRX - 12 TRX/Day * 1,000,000 / 100,000 * 0.5 Day = 100 TRX

• Used Energy recovered to 60% of the original amount: Security deposit to be returned = 160 TRX - 12 TRX/Day * 1,000,000 / 100,000 * 0.5 day - 40% * 12 TRX * 1,000,000 / 100,000 * 0.5 = 76 TRX

3. The user does not end the rental upon expiration, and the order is liquidated at that moment (no price fluctuation)

• Used Energy fully recovered: Security deposit to be returned = 160 TRX - 40 TRX - 6,000 TRX * 1,000,000 / 100,000 * 0.05% = 90 TRX

• Used Energy recovered to 60% of the original amount: Security deposit to be returned = 160 TRX - 40 TRX - 6,000 TRX * 1,000,000 / 100,000 * 0.05% - 40% * 12 TRX * 1,000,000 / 100,000 * 0.5 = 66 TRX

Therefore, you can get all your security deposit back when you end the rental early or on time and with all Energy recovered to the original amount.