# Dukascash price determination

The Bank may quote Dukascash tokens against Dukascoins or fiat currencies or other Dukascash tokens.

If Dukascash is quoted against Dukascoins the Bank applies the following principle for Dukascash token intrinsic value determination: the number of Dukascoins required to buy one unit of Dukascash base fiat currency should be equal to the number of Dukascoins needed to buy one corresponding Dukascash token. The current price of the Dukascoin is taken from the Dukascoin Bulletin Board, which enables clients of the Bank to execute peer-to-peer exchanges of Dukascoins to Euro and vice versa.

The Bank considers Dukascash tokens defined by this way as softly linked to its base currencies. Detailed description of the soft-linked concept is described in the Dukascash White Paper.

The "soft" linkage is derived from the fact that the Dukascash token is linked to the base currency indirectly through the intermediation of the Dukascoin. Therefore, the Dukascash token can deviate from the base currency's value but thanks to the design, the Dukascash token in long-term is supposed to seek parity with the base fiat currency, which is the Dukascash token's intrinsic value.

In the determination of the Dukascash token price there will always be a situation when the cross rate of Dukascash tokens in different base currencies is approximately equal to the cross rate of their base currencies. This will allow exchanging Dukascash tokens with different base currencies in a way similar to fiat currency exchange, which, in turn, makes Dukascash a universal and convenient means of payment worldwide.

Clients willing to buy Dukascash tokens must apply for a quotation from the Bank. Up to a certain limit set by the Bank, it is only possible to exchange Dukascash tokens against Dukascoins. Beyond that limit, the Bank reserves the right to quote Dukascash tokens against either Dukascoins or fiat currencies. The limit is determined and may be changed by the Bank at its discretion.

### Example 1: EUR+/DUK+ exchange rate calculation

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Let's consider the example where the Coin rate against euro (DUK+/EUR) on the Dukascoin's Bulletin Board is 0.74/0.75 EUR for 1 Coin (best Bid = 0.74, best Ask = 0.75). The Bank will attempt to sell Dukascash tokens at the reverse rate of Dukascoins on the Bulletin Board at Ask: 1 / 0.74 = 1.3514. The Bank will attempt to buy Dukascash tokens at the reverse rate of Dukascoins on the Bulletin Board at Bid: 1 / 0.75 = 1.3333. Therefore, the attempted exchange rate EUR+/DUK+ will be as follows: 1.3333 / 1.3514 (Bid = 1.3333, Ask = 1.3514).
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### Example 2: USD+/DUK+ and CHF+/DUK+ exchange rate calculation

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The initial quotation for Dukascash tokens with other base currency will be based on the best bid/ask of DUK+/EUR from the Dukascoin Bulletin board and Dukascopy Bank cross rate of the corresponding fiat currency to EUR.
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Let’s consider the example where the DUK+/EUR on the Dukascoin's Bulletin Board is 0.74/0.75 EUR for 1 DUK+ (best Bid = 0.74, best Ask = 0.75) and Dukascopy Bank EUR/USD rate is 1.1299/1.1300. In this case, the quotation of USD+ against DUK+ will be equal to 1.1799/1.1960. To calculate the quotation for another Dukascash token (CHF+) with the same quotation of DUK+/EUR, one will need to have the rate EUR/CHF. Let’s assume this Dukascopy Bank EUR/CHF rate is 1.1199/1.1200. In this case the quotation of CHF+ against DUK+ will be 1.1905/1.2067.
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### Example 3: EUR+/EUR exchange rate calculation

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If a client would like to buy Dukascash against a fiat base currency they must do two subsequent transactions. The first one is to buy Dukascoin against EUR on the Dukascoin Bulletin Board. The second one is to buy EUR+ Dukascash token against Dukascoin from the Bank.
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In this case the first transaction would be done at the Ask rate of 0.75 on the Dukascoin Bulletin Board and the second transaction will be done at the Ask rate from the Bank equal to 1.3514. Thus, the cumulative rate for both mentioned transactions will be 0.75 * 1.3514 = 1.0136 EUR+/EUR.
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If a client would like to sell Dukascash against a fiat base currency, they must do two subsequent transactions. The first one is to sell EUR+ Dukascash to the Bank against Dukascoin. The second one is to sell Dukascoin against EUR on the Dukascoin Bulletin Board.
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In this case the first transaction would be done at the Bid rate of 1.3333 and the second transaction would be done at the Bid rate on the Dukascoin Bulletin Board equal to 0.74. Thus, the attempted cumulative rate for both mentioned transactions will be 1.3333 * 0.74 = 0.9866 EUR+/EUR.
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