# What is JPEGZ?

JPEGZ is an ERC20 token that tokenizes the prices of the top 10 most liquid NFT collections. In simple words, JPEGZ is an index of ten NFT collections. The price feed is aggregated by Coinbase cloud and is verified by a series of Chainlink validators and written on-chain. The JPEGZ index token is currently deployed on the Arbitrum network. The health of this chainlink oracle used by JPEGZ can be found here.

#### Index Calculation#

The Index price is calculated in the following way:

Let:
$N$ = Number of collections included in the index
$S_c$ = The total supply of collection c included in the index
$F_c$ = The ETH floor price of collection c included in the index
$U$ = The USD value of Ethereum

$NFTIndex = (\displaystyle\sum_{c=1}^N S_c F_c) * U$

The final output of this calculation is verified and written on chain by chainlink.

#### Supported Collaterals#

JPEGZ can be minted by depositing ETH or DAI as collateral in the vaults.

#### Minimum Vault Ratio#

ETH vaults have a minimum vault ratio requirement of 150 %, and the DAI vault has a minimum vault requirement of 170%. Any vaults that fail to maintain the minimum vault ratio will be liquidated.

#### Liquidation Penalty#

All JPEGZ vaults have a liquidation penalty of 20%.

#### Fees#

JPEGZ has a mint fee of 1.5 % and a burn fee of 1.5 %. The fee is charged as a percentage of the amount minted/burned in ETH. The DAO owns the revenue generated through these fees.