All rewards are earned immediately upon the performance of a qualifying action by the user. Rewards are valued in bitcoin at the time of the qualifying transaction, which differs from some rewards programs that only finalize rewards at some point in the future.
To fulfill bitcoin-denominated customer rewards, Fold maintains an amount of bitcoin in our Rewards Treasury equal to or greater than our customer rewards obligations. To do so, Fold purchases bitcoin approximately once per day in an amount that approximates the amount of rewards earned by customers on that day.
We purchase bitcoin at periodic intervals rather than for each qualifying transaction. As a result, we mitigate price risk by adding a small “spread” to the bitcoin price being used to calculate rewards. Spreads represent the difference between the current market price for an asset and the price you can buy or sell that asset for. The spread represents the difference between the highest price that a buyer is willing to pay for an asset (ask price) and the lowest price that a seller is willing to accept (bid price), and spreads change from time to time based on market conditions.
This approach allows us to immediately lock in an exchange price for your reward while mitigating price exposure, thereby allowing us to continue to offer real-time rewards more reliably.
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