🌱Ceiling price

How will the ceiling price be calculated?

On MagicEden the floor price is calculated based on the lowest selling order. Likewise, the ceiling price will be calculated based on the highest buying order. Let's assume there are 5 active buy orders for the Degods collection on 260, 275, 295, 310 and 335 SOL respectively. Here, the highest buying order is at 335 SOL. Therefore, the ceiling price will be 335 SOL and if the 335 SOL order is fulfilled, then the ceiling will be 310 SOL as the 310 SOL order is the highest order after the 335 SOL. The entire process will be automated.

How are we going to display it on our platform?

As of now, the ceiling price will only be displayed on the CABOZ platform and the integration with other platforms isn't planned. Furthermore, the Ceiling Price can also be filtered by rarity.

Will it be above the floor price or below the floor price?

It is likely that a user will be willing to pay more if he selects a higher rarity. Therefore, the Ceiling Price will be higher or lower than the floor price, depending on the situation.

How can we avoid it by being manipulated?

A system of escrow provides us with the greatest advantage in avoiding manipulation. It is necessary for a buyer to lock in the amount in the smart contract if he would like to purchase an NFT for 300 SOL. The users are therefore unlikely to lock the liquidity solely for the purpose of manipulating the ceiling price. In addition, users are only permitted to place one order per collection. There are two things that can be done to prevent the manipulation of the ceiling price.

What's the difference between the Bid price and the Ceiling price?

The bid price can be placed for a particular NFT, but the ceiling price will be set for a particular collection. In addition, users can sell any NFT from the collection that meets the buyers' minimum requirement at the ceiling price.

Benefits of the Ceiling Price:

Useful during panic selling:

During market downturns, sellers want to get out of the market as soon as possible, so they keep listing at lower prices, resulting in floor collapse. But in our case, if you want to sell immediately and the price you're getting is favorable to you, you can sell at the ceiling price.

Useful to find support:

A feature of our platform allows users to see in which area buyers are interested in purchasing a particular collection. Basically, it is a feature of analyzing the liquidity area. Suppose there are 10 active orders between 300 and 320 SOL, There is no doubt that between 300 and 320 SOL there is a strong support level, and based on this information, users can analyze the support and trade accordingly.

Useful for sellers:

CABOZ offers a market section where users can check each and every active limit order. Let us assume that the floor price for Degods NFT is 320 SOL, and there is an active limit order for 300 SOL. Here, an owner of Degods NFT is interested in selling his Degods as soon as possible, he is not concerned about the FP, he just wants instant liquidity. Now, the CABOZ comes into play. For a quick trade, He'll go to Caboz and search for the order that is at 300 SOL. As soon as he clicks on the trade option and approves the transaction, his Degods have been sold and the buyer has received the Degods.

Low fees:

As we previously stated, we will charge 1% of the total trade amount from the non-Inkwork Labs holders. For example, A seller would like to sell his NFT to a buyer who has an active order on the CABOZ platform. The fee we will charge if he sells his NFT on CABOZ will be 1% of the trade amount (keeping royalties aside), as opposed to marketplaces like Magiceden and Solanart charging between 2-3%. As a result, it is a win-win situation for the seller, as he is able to save 1% by trading on CABOZ while at the same time obtaining instant liquidity.