What is the difference between a Participating Members Principal Balance and their Rewards Balance?

Gray Fund Principal Balance:

  • The term “Principal Balance” as defined by Gray Digital: Principal Balance refers to funds added to the Gray Fund by a Participating Member. These are funds that have been sent directly from the Participating Member to the Gray Digital. This balance does not include rewards. The Rewards balance is treated separately than the Principal Balance. There is no levy applied to a withdrawal of principal funds.

Gray Fund Rewards Balance:

  • The term “Rewards” as defined by Gray Digital:

    Rewards are defined as a collection of “compensations”, “profits” or “premiums” that are collected by Gray Fund investments. These rewards are collected and provided back to Participating Members as a reward. This reward is variable and is dependent on market activity and trends.

    This collection of rewards will be identified as a Participating Members (Reward Balance). The percentage of monthly rewards collected by the Gray Fund are applied to each individual Participating Members Reward account balance. The dollar value of rewards are determined by the Participating Members existing Principal balance and Reward balance at the time of application.

Participating Member's Total Account Balance:

  • A Participating Members "Total Account Balance" is a combination of their Gray Fund Principal Balance and the Gray Fund Rewards Balance.

  • The Total Account Balance earns monthly rewards. This balance is also used to calculate monthly rewards.

  • If Rewards are not claimed, they will be included in the Total Account Balance calculation for the next reward cycle.

  • Monthly rewards are added to the Participating Members Gray Fund Rewards Balance.

The following diagram is a visual aid to help describe the Gray Fund Balances and how they function. This diagram is for educational purposes only. This example does not account for the 15% withdrawal fee*

In this example, the Participating Member started with a $5,000.00 deposit. This is the Participating Members Principal Balance. Unless the member adds more funds to the Principal Balance, this number will not increase. Gray Fund Rewards will increase on a monthly basis as rewards are added. The Diagram shows an increase of 10% in rewards each month to the Total Account Balance, with a 5% withdrawal of the Total Account Balance each month.

In the second visual, you will see that the Principal Balance (blue) does not change, but the Reward Balance (orange) increases over time, the withdrawal amount (red) withdraws more funds over time, and the Total Account Balance also increases over time.

Upon a withdrawal, the reward balance is converted into a single, common cryptocurrency stablecoin and distributed to Participating Members based on Gray Digital platform guidelines. Currently, rewards are available to be claimed in USDT and USDC on seven (7) Networks: Ethereum (ETH), Binance Chain (BNB), Polygon(MATIC), Avalanche (AVAX), Optimism (OP), Arbitrum (ARB) and Base. When a Participating Member withdrawals rewards, a fee of 15% is applied to the collected reward funds. For further details see Gray Fund Withdrawals.

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