[//]:content-type-MARKDOWN-DONOT-DELETE ## Terminology |

Stake and Mint

|The process of staking certain amount of USDT to mint PreToken.| | ------------ | ------------ | | PreToken | PreToken refer to any token credential minted via staking USDT in PreMint. | | Total Staked | Total Staked = Total Minted * Staking Rate | | Forfeited Staked Assets | If PreMinters failed to deliver within the settlement period, their staked assets will be forfeited. | | PreToken spot market |PreToken spot market is a market where users can trade **PreToken** (credential of tokens yet to be officially listed openly, just liking trading a listed token).| ## 1. What is Pre-Market? Pre-Market allows for staking USDT to mint PreToken, a token credential for project listed for Pre-Market Trading, which can be traded in the PreToken spot market, but is not withdrawable or transferable. ## 2. What are the advantages of Pre-Market? Users can stake USDT to mint PreToken before the token is officially listed in spot markets and trade PreTokens in the PreToken spot market to earn returns in advance. After the token is listed and can be deposited, minters can deposit the tokens to complete delivery and unstake the staked assets. ## 3. What's the difference between the PreToken minted in Pre-Market and the one bought in Pre-Market OTC? | |Pre-Market |Pre-Market OTC | | ------------ | ------------ | ------------ | | Trading Type | Mint PreToken, deliver, and trade with any users in the PreToken spot market | OTC Trading | | Delivery| PreToken balance at snapshot does not guarantee you a full amount of real tokens received. You may receive both real tokens and forfeited assets (if some minters default on delivery). | Either real tokens or indemnity, depending on how your seller perform delivery. | | Spot Market Liquidity | PreTokens can be traded in PreToken spot market. | No spot trading until real tokens are officially listed. | ## 4. How does Pre-Market work? After a Pre-Market project starts, users can either mint PreTokens and trade them in the PreToken spot market or they can directly buy or sell those already minted in the market. Before the end of Pre-Market Trading, the entry to Pre-Market and the PreToken spot market will be closed. By the end of the Pre-Market Trading, the system will take a snapshot of the PreTokens users are holding and clear the balance. **For minters:** For minters, minters need to prepare tokens for delivery during the delivery period. After a successful delivery, the staked USDT will be returned to your spot account/Unified Account. If fail to perform delivery, your staked assets will be forfeited and distributed to PreToken traders at settlement. **For traders:** For traders, traders in the PreToken spot market can choose to sell the PreToken to earn returns before the spot market is closed, or you can buy and hold the PreToken and wait for the settlement; after the delivery completes, the system will conduct a settlement for users holding the PreToken. These holders will receive tokens delivered by minters and the remaining staked assets due to failed delivery. ## 5. What is the PreToken spot market? PreToken spot market is a platform specialized for the trading and circulation of **PreToken** (credential of tokens yet to be officially listed openly, just liking trading a listed token). Users can participate in the trading of PreToken before the token project is officially listed in spot markets. ##6. Rules of the Opening of Pre-Market and PreToken Spot Market

Event	Time	Description
Pre-Market Opens	Within 24 hours after the start of Pre-Market OTC trading	Users can stake USDT to mint PreToken and these PreTokens minted will be reflected in your Spot Account/Unified Account.
PreToken Spot Market Opens	Shortly after the Pre-Market starts	Users can trade PreTokens in the spot market, similar to trading with a regular token.
Pre-Market Closes	24 hours before the the end of Pre-Market OTC trading	Users can mint PreTokens until the closure of the Pre-Market.
PreToken Spot Market Closes	12 hours before the the end of Pre-Market OTC trading	When the market is closed,a snapshot of PreToken balances for all holders will be taken, which will be the basis for settlement. After snapshot, the PreToken balance at users account will be removed to avoid confusion.

Please refer to related announcements or notices on the Pre-Market Trading page to learn more about Pre-Market functions and the opening time of PreToken spot market. ## 7. How to complete the delivery? After the delivery starts, minters need to deposit or buy tokens via spot trading to ensure there's enough account balance for delivery. The system will deduct the tokens from the account and return the staked assets to the account. If minters fail to deliver the amount needed for delivery within the delivery period, they cannot get their staked assets back. ##8. How to complete the settlement? After the delivery completes, the system will conduct a settlement for users holding the PreToken based on the snapshots taken. PreToken holders will receive the tokens delivered by minters and a share of forfeited staked assets due to delivery failure. If all minters complete delivery, holders will receive the same amount of token as recorded in the snapshots (If it is a Point project, the token amount will be converted using the conversion ratio); however, if all minters fail to deliver, the staked assets will be divided proportionally and sent to holders.

Pre-Market Trading Procedures	Example	Details
Pre-Market Opens	Users can stake USDT to mint PreToken.	/
Minting Phases	Suppose that: User A staked 15 USDT to mint 10 PreTokens; user B staked 10 USDT to mint 5 PreTokens; user C staked 10 USDT to mint 5 PreTokens.	Total Staked: 35 USDT; Total Minted: 20 PreTokens
PreToken Spot Market Opens
PreToken Spot Market Trading	User A sold 10 PreTokens to user D.	Total Staked: 35 USDT; Total Minted: 20 PreTokens
PreToken Spot Market Closes
Clear Balance After Snapshot	Take a snapshot of PreToken balance of all holders and clear the balance to prepare for settlement.	/
Minting Order Conversion (Point Projects)	If the project is a Point project, the system will convert the points to Pretokens based on the conversion ratio (such as 10:1). Example: User B minted 5 PreToken Points and was converted to 50 PreTokens based on the conversion ratio of 10:1. User C minted 5 PreToken Points and was converted to 50 PreTokens based on the conversion ratio of 10:1.	/
Delivery Starts	Enter the delivery phase after taking the snapshot of PreToken balance	/
Delivery Process	User B and user C deposited 50 tokens, completed their delivery, and got their staked assets back. User A failed to deliver and forfeited the staked assets.	Forfeited staked assets: 15 USDT; Total Delivered: 100 tokens
Settlement	The total delivered amount (100 tokens) and forfeited staked assets (15 USDT) were divided proportionally based on the balance on snapshot. Example: User B holds 5 PreTokens, account for 5/20 of the total. The tokens B received = Total delivery amount x 5/20 = 25. The staked assets B received = Forfeited staked assets x 5/20 =3.75 USDT	/

##9. What if the token listing is delayed or canceled? If the token listing is delayed, the pre-minted orders are still valid and you need to wait for the announcement of a new delivery time. If the token listing is canceled, the system will take snapshots and conduct a settlement for users holding the PreToken and the staked assets will be divided proportionally and sent to holders.

Gate Pre-Market FAQ