Rebates

GEL-T are issued upon demand with a rebate component. If the purchaser/investor, or a secondary purchaser/possessor wants a refund on the instrument, they have rights to sell the instrument back through chateau at a guaranteed floor price (at a time-premium based discount to the sale price) provided in the smart contract for a certain length of time.

This increases assurance and liquidity to the buyer. exercising a rebate requires that the seller repurchase the instrument at an appropriate discount to the sales price. Time limited repurchase agreements indirectly provide the buyer a right to ‘put back’ collateral/underlying to the seller. this feature is a integral component of enhancing liquidity for chateau product lines. A dedicated chateau spv will act as a repository for this liquidity enhancement facility. Each series of gel-t products will be issued with similar yet bespoke terms of repurchase. These agreements self terminate if unexercised, at which chateau spv provides the seller with their full funds.