Buyback Program Policy
Last updated: August 30th 2025
This Buyback Program Policy (“Policy”) describes how LongBoat Digital Ltd (“LongBoat,” “we,” “us”) operates its voluntary buyback program for LongBoat NFTs (the “Program”).
The Program is designed to enhance liquidity and provide participants with additional flexibility. It is not a guarantee of returns, nor a contractual obligation, but an operational mechanism LongBoat endeavors to maintain for the benefit of its community.
Definitions
“Buyback Program”: A discretionary program operated by LongBoat to support secondary market liquidity of NFTs (“Node Licenses”).
“Execution Price”: The price at which LongBoat may repurchase an NFT under the Buyback Program.
“Performing NFT”: A Node License linked to a container lease that is consistently paid up.
“Non-Performing NFT”: A Node License linked to a container lease that is late in payment or under renegotiation.
1. Scope of the Program
The Program applies only to LongBoat NFTs (Node Licenses/Collectibles) issued by LongBoat Digital LLC.
The Program is available for NFTs classified as “Performing” (see Section 3).
The Program is discretionary and subject to the availability of the Buyback Fund (see Section 4).
2. Reference Execution Price
Under the Buyback Program, the execution price for each NFT is based on the depreciated value of the associated container.
Containers depreciate at 3% per year over 15 years.
That equals 0.25% per month.
After 15 years, the container is considered to have lost 45% of its value.
The Buyback Program offers participants 90% of this depreciated value as the execution price.
Execution Price = 0.90 * $48 (1 - 0.0025 * m)
Where m = number of months since lease start (0 ≤ m ≤ 180).
Examples:
At Month 0 (purchase date):
Depreciation = 0%
Execution Price = 43.2 × (1 – 0) = $43.20
At Month 60 (Year 5):
Depreciation = 0.25% × 60 months = 15%
Execution Price = 43.2 × (1 – 0.15) = $36.72
At Month 180 (Year 15, end of lease):
Depreciation = 0.25% × 180 = 45%
Execution Price = 43.2 × (1 – 0.45) = $23.76
3. Performing vs. Non-Performing NFTs
Performing NFTs: linked to containers under active, paying lease agreements.
Non-Performing NFTs: linked to containers where lease payments are late, interrupted, or renegotiated.
Only Performing NFTs are eligible for buyback at the reference execution price.
LongBoat will make best efforts to return Non-Performing NFTs to Performing status as soon as possible.
You can track the Performance Status of each containers in the Transparency Dashboard.
4. The Buyback Fund
LongBoat maintains a dedicated Buyback Fund, which is separate from operational expenses.
The Fund is financed as follows:
7% of every NFT sale is reserved directly into the Fund.
An additional 40% of net profit is used by LongBoat to purchase LongBoat NFTs into the Fund itself.
The NFTs held by the Fund receive network rewards each month, compounding the Fund’s growth over time.
When the Fund executes buybacks of NFTs from users, these NFTs also generate monthly rewards for the Fund, further increasing its replenishment capacity.
This structure makes the Fund self-reinforcing and designed to strengthen over time.
5. Bankrun Clause
If the Buyback Fund decreases by more than 50% in any rolling 30-day period, LongBoat reserves the right to: (i) hold a public auction to replenish the fund; (ii) adjust the Execution Price to ensure sustainability.
This mechanism exists to protect all LongBoat participants and the overall stability of the network.
6. Liquidation Priority
In the event that both LongBoat Digital LLC and LongBoat Operations Ltd are liquidated, NFT holders shall have priority claim to the net proceeds of container liquidation (after settlement of sovereign debts such as taxes).
Proceeds will be distributed pro rata to holders of valid NFTs at the time of liquidation.
7. Limitations & Disclaimers
The Buyback Program is voluntary, discretionary, and subject to treasury conditions.
LongBoat may suspend, modify, or terminate the Program at any time if required by operational, financial, or legal considerations.
Participation in the Program does not constitute a guarantee of principal protection, investment return, or profit.
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