These are operating costs paid before any revenue is counted. A high-cost cycle reduces everything downstream. Equipment failures spike this number unpredictably.
02
Processing Cost
What it costs to convert raw ore into sellable output
We sell at spot price minus a small buyer discount (standard in commodity markets). We do not set the price. A 10% drop in gold price = 10% drop in gross revenue regardless of extraction volume.
04
Profit Margin Logic
What's left after costs — and how it's split
Gross revenue (from sale)+$45,080
− Extraction cost−$4,300
− Processing cost−$3,200
− Platform operational fee−$1,800 (4%)
= Distributable amount$35,780
Participant shareProportional to stake in cycle
Example: $35,780 distributable ÷ 1,000 total stake units = $35.78 per unit
The distributable amount is split across all participants proportional to their stake. If distributable = $0 (costs exceeded revenue), distribution = $0. There is no minimum distribution guarantee.
What Makes the Math Go Negative
Gold price drops 15%
Gross revenue drops 15%. Costs stay the same. Margin compresses or disappears.
Ore grade lower than expected
Less gold extracted per tonne. Processing cost per gram of output rises. Net yield drops.
Same processing cost, 37% less output to sell. Effective cost-per-gram nearly doubles.
All of the above in the same cycle
Costs exceed revenue. Distributable amount = $0. No distribution that cycle.
Plain summary
→Revenue = Sale price × yield. Both variables fluctuate.
→Costs are deducted first. They are relatively fixed regardless of revenue.
→When revenue < costs: distribution = zero. This can happen.
→No one can tell you in advance what a cycle will return. Anyone who does is guessing or lying.
→The only honest answer to "what will I earn?" is: depends on commodity prices and extraction yield at that time.
All numbers on this page are illustrative examples only. Actual extraction rates, processing costs, and sale prices vary per cycle and are not published in advance. Do not use these figures to estimate returns.