# Business Model

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**1. Acquisition of Derivative Contracts:** Our journey begins with the acquisition of derivative contracts of vital minerals such as lithium, cobalt, nickel, and rhodium. These contracts enable us to establish a direct link to the commodities market, giving investors exposure to these essential resources.

**2. Investment Capital Allocation:** To secure these derivative contracts, we deploy a strategic capital allocation strategy. We commit only 10% of the total value of the derivative contract as an initial investment. Additionally, we allocate an extra 5% as a buffer, mitigating the risk of potential margin calls and ensuring the stability of our positions.

**3. Revenue Generation:** With the majority of our capital not directly tied to the derivative contracts, we leverage our financial acumen to invest the remaining 85% in a diversified portfolio of triple-A bonds and secure investments. This intelligent diversification generates consistent revenue and profit streams for the company. These earnings not only contribute to BlockLit's operational sustainability but also enhance the value of our projects and tokens.

**4. Ensuring Stability and Growth:** Our prudent investment strategy, backed by safe and established assets, safeguards against potential market volatility. By diversifying our investments and focusing on stable instruments, we ensure that we maintain a healthy financial position, even in challenging economic conditions.

**5. Synergy and Sustainable Expansion:** The synergy between our commodity-backed tokens and our financial investments creates a self-sustaining loop of growth. As our tokens gain traction and value, our financial investments yield profits, which, in turn, bolster our commodities holdings. This dynamic cycle enhances our overall financial strength and underpins our ability to innovate and expand further.

*By combining blockchain technology, commodities investment, and prudent financial strategies, we establish a robust ecosystem that benefits our investors and our company alike. This approach empowers us to drive positive change in both the investment landscape and the sustainable future we all envision.*
