To answer this question, it is important to understand how resource sharing works in general, and then more specifically, how it works with Summit Mining.
If you read the answer to the question "What is a Summit Mining distribution Key?" above, you know that in exchange for your investment, you will receive Summit Mining distribution Keys (SMKs) and that one SMK represents the current market value of the mining machines (visible on your dashboard).
When we order mining machines, a part of the initial investment goes into costs (called processing costs) such as transportation, transportation insurance costs, customs costs, machine testing costs, installation costs. You also bear these costs if you invest in mining without us.
Let's take a simplified but realistic example where you invest 10,000 euros.
If you have 10,000 euros (and not one more) at your disposal, you will be able to buy a machine outside Europe for 6,000 euros, because you will have to spend 4,000 euros (approximately) on shipping, insurance, customs, VAT, etc. If you buy the same machine in Europe, the reseller will have already impacted the price with these costs and will even have taken his margin. It could eventually cost you 11,000 euros or 12,000 euros. Or even more (we have already seen this!).
Keeping in mind the previous principle, we cannot buy machines for exactly 10,000 euros. For example, there are 7,500 euros of machines (2 machines at 3,750 euros each) and 2,500 euros of costs.
Therefore, in reality, we only bought 7,500 euros worth of machines, and the remaining 2,500 euros are "sunk" costs. That said, since you invested 10,000 euros, you get SMKs back, the number of which depends on the price of the SMK on the day you invested.
On the day you wish to withdraw funds, in whole or in part, we will need to re-assess the value of your SMKs. The value of your SMKs is based on the value of the machines that make up the mining fleet. The value of the machines that make up the mining fleet depends on the profitability of the machines. And finally, the profitability of a machine depends not only on its power but especially on the price of the cryptocurrency it mines. In concrete terms, if it brings in 50 euros in a month but costs 75 euros in electricity, it is not profitable and therefore no one will want it. So there is supply but no demand. Supply and demand oblige, its price will be low. If, on the other hand, the machine produces 125 euros per month and costs 75 euros in electricity, it is profitable and its price will be higher. You can find more details about the variation in the profitability of machines in the section that answers the question "Why is the profitability of mining machines not always the same?"
Understanding the basic principle of supply and demand, it therefore makes more sense to wait until the market price of cryptocurrencies is high rather than when it is low to recover invested funds, so that the value of your SMKs is as high as possible. You also understand that the funds initially invested are not guaranteed.
When you have finally made your decision, your SMKs are offered for sale to other customers, who may be interested in buying them back. If no one wants them, we physically sell machines for the amount we need to recover to reimburse you, and the SMKs are then destroyed and removed from the fleet.
