> For the complete documentation index, see [llms.txt](https://specter-finance.gitbook.io/specterfinance.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://specter-finance.gitbook.io/specterfinance.xyz/faq-getting-started/contractions-and-sbonds.md).

# Contractions & SBONDS

### 1. "When can I swap $SPECTER for $SBOND?"

$SBOND will only become available in the Crypt following epochs in which the Time Weighted Average Price (TWAP) of $SPECTER is under peg. This means that $SPECTER's price will have had to have been under 1 $FTM per 1 $SPECTER for the majority of the previous epoch in order to trigger the Crypt to "open".

The Crypt will always open at the very beginning of a new epoch, and remain open for the entire epoch — the Crypt can not and will never open mid-epoch — and during epochs in which the Crypt is open, $SPECTER will not be printed in the Mausoleum.

### 2. "What is the formula to calculate the redemption bonus for $SBOND?"

To encourage redemption of $SBOND for $SPECTER when $SPECTER's TWAP > 1.1, and in order to incentivize users to redeem at a higher price, $SBOND redemption will be more profitable with a higher $SPECTER TWAP value. The $SBOND to $SPECTER ratio will be 1:R, where R can be calculated in the formula as shown below:

$$
R=1+\[(SPECTER twapprice)-1)\*coeff)9)]
$$

$$
coeff = 0.7
$$

To further illustrate why the longer you hold $SBOND the more profitable it is, let's take an initial $1000 investment into consideration. In this example, say this $1000 is used to buy $SPECTER when $SPECTER TWAP is 0.95 and then swapped for $SBOND.\
\
If these $SBOND are redeemed when:\
-$SPECTER TWAP is 1.5, your investment would now be worth $1421.\
-$SPECTER TWAP is 2, your investment would now be worth $1789.\
-$SPECTER TWAP is 3, your investment would now be worth $2526.\
-$SPECTER TWAP is 5, your investment would now be worth $4000.\ <br>

### 3. "I expected $SBOND to be issued in the Crypt, but there is none. Why?"

There is a balanced state "at peg" when $SPECTER's TWAP is between 1.00 and 1.01, and this means there is neither contraction nor inflation.

### 4. "When can I swap $SBOND back to $SPECTER?"

You can swap it back again when the following two criteria are met:

1: $SPECTER TWAP is above peg and

2\. There is enough in the treasury to cover it the redemption.&#x20;

### 5. "Is $SBOND right for me?"

Like anything else in crypto, obtaining $SBOND is not risk-free. Just like in the real world, you are purchasing debt from the protocol with the expectation that you will be redeemed at a premium in the future. To date, this has occurred after all contractions, but past performance does not guarantee the same future outcomes. \
\
$SBOND is ideal for those with a medium to long-term time preference, as it incentivizes hodling in exchange for potentially extremely lucrative rewards. If you are looking for a quick flip or have short-term time preference, $SBOND may not be the right investment option for you.