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description: Simple, Seamless, Dominant
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# Guaranteed Allocations

The Launchpad process can be complex and difficult to navigate, especially for new users. To address this issue, we have developed a new, simpler system, one that reduces complexity and cuts onboarding time for users by 90%. This new process only consists of completing KYC, staking a minimum of 50000 $IPAD, and making a deposit. When contributions open, users will receive an automated email notification, and can make their contribution immediately. The maximum amount that an individual user can contribute is determined by staked IPAD. The more IPAD tokens you stake, the higher your guaranteed allocation and maximum deposit amount will be. In the case of an under-subscribed sale, all users who made a contribution will receive the same allocation as the amount of BUSD they deposited. If the total deposits exceed the total raise, the sale is considered over-subscribed. In this case, the smart contract calculates the allocation of user and refunds the remaining amount within a few minutes after contributions are closed

### In Depth Explanation

Maximum contribution formula is determined as :

<figure><img src="https://miro.medium.com/v2/resize:fit:875/1*BD0Ce-fYoLJsf89cpQ9wcw.png" alt=""><figcaption></figcaption></figure>

_Each sale can be oversubscribed up to approximately 400%_

Let’s say that a user stakes 100,000 $IPAD and the total raise of the sale is $50,000. Let’s assume that on an average 20M $IPAD is registered for sale. So, his personal maximum deposit amount will be calculated using above formula is $1000

The user personal maximum deposit amount will therefore be $1000

Now, let’s say that the sale is 2x oversubscribed i.e. Users contributed $100,000. So, when the sale ends, the smart contract calculates guaranteed allocations for each individual user with this formulation:

<figure><img src="https://miro.medium.com/v2/resize:fit:875/1*AQpKX5WtHsvTyKdH757b5Q.png" alt=""><figcaption></figcaption></figure>

So, in our case, the user will get $250 allocation. Now, let’s see two scenarios :

**User contributes less than his allocation** : If a user contributed less than or equal to his guaranteed allocation, he will get the exact amount he has deposited. Example: The user with 100,000 iPower deposited $200. He will get the allocation for this amount because it’s less than his calculated personal guaranteed allocation size.

**User deposits more than the his personal allocation** : If a user deposited more than that, the smart contract calculates the additional allocation of user (on top of the guaranteed allocation) with this equation:

<figure><img src="https://miro.medium.com/v2/resize:fit:875/1*fjdcZAN_Oksa5unXok_YBA.png" alt=""><figcaption></figcaption></figure>

The user with 100,000 iPower deposited $1000. This is more than his calculated personal guaranteed allocation. First, the smart contract calculates the excessive deposit of this user :\
Excessive deposit = $1000 — $250 = $750

Second, the additional allocation will be calculated. For this example, we assume the total guaranteed allocations (summation of all (adjusted) guaranteed allocations of the users) are $45,000).

Additional allocation calculated using above formula comes out as 75$. It means his final allocation is guaranteed allocation + additional allocation = $250 + $75 = $325

## Conclusion <a href="#id-5bad" id="id-5bad"></a>

We are thrilled about the new guaranteed allocation system as it will greatly improve the overall experience for both users and the team. It streamlines the process, reducing complexity and onboarding time by 90%.

The new system will also benefit smaller holders while having minimal effect on larger ones. No more waiting for results to contribute. Users can participate and wait for distribution.

