> For the complete documentation index, see [llms.txt](https://docs.wandfi.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.wandfi.io/products/collateral-vault/discount-offer.md).

# Discount Offer

**'Discount offer' is a mechanism that is only activated in Adjustment Mode.** In this mechanism, users can purchase margin tokens like ETHx using USB, and when AAR is lower than AART, the discount for purchases gradually increases over time. It is a Dutch auction-based exchange.

<figure><img src="/files/YNtA0iX4tmzjRCg8Wcm6" alt=""><figcaption></figcaption></figure>

***

**For the V-Vault, let's take the ETHx discount offer as an example:**

* In the Adjustment Mode,  when AAR is between 101% and AART, the formula for trading ETHx with USB is:

$$\Delta ETHx = \frac{\Delta USB \times M\_{ETHx}}{M\_{ETH} \times P\_{eth} - M\_{USB-ETH}} \times (1 + r)$$

Where ( r ) is the compensation coefficient, which gradually increases over time.&#x20;

{% hint style="warning" %}
Additionally, to prevent extreme volatility risks, when the AAR falls below 110%, the 'Discount offer' will be paused for half an hour, and it will resume after one hour.
{% endhint %}

* When AAR falls below 101%, the formula for trading ETHx with USB changes to:

$$\Delta ETHx = \frac{\Delta USB \times M\_{ETHx} \times 100}{M\_{USB-ETH}}$$

* When AAR rises over AART, it enters Stability Mode, and the discount offer ends.

***

**For the S-Vault, let's take the USDBx discount offer as an example:**

* When AAR falls below AARS, the formula for trading USDBx with USB is:

$$\Delta USDBx = \frac{\Delta USB \times M\_{USDBx}}{M\_{USDB} \times P\_{usdb} - M\_{USB-USDB}} \times (1 + r)$$

Where ( r ) is the compensation coefficient, which gradually increases over time.&#x20;

* When AAR falls below 101%, the formula for trading USDBx with USB changes to:

$$\Delta USDBx = \frac{\Delta USB \times M\_{USDBx} \times 100}{M\_{USB-USDB}}$$

* When AAR rises over AARS, it enters Stability Mode, and the discount offer ends.