To answer this question, it's important to understand how resource sharing works in general, and then more specifically how it works with Summit Mining. If you've read the answer to the question "What is a Mining Park Token?" above, you now know that in exchange for your investment, you will receive Mining Park Token (MPT) and that an MPT corresponds to the current market value (visible on your dashboard).
When we order mining machines, part of the initial investment goes into costs such as transportation, transportation insurance costs, customs costs, machine inspection costs, installation costs. It is the same if you invest in mining without us.
Let's take a realistic simplified 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, so it could even cost you 11,000 euros or 12,000 euros. Or even more (we've already seen it!).
Keeping in mind the previous principle, we cannot buy exactly 10,000 euros worth of machines. For example, there are 8,000 euros of machines (2 machines at 4,000 euros each) and 2,000 euros of costs. So, in effect, we only bought 8,000 euros worth of machines, and the remaining 2,000 euros are "sunk" costs. That said, since you invested 10,000 euros, you get 10,000 TPM back. By the way, the 2 machines we bought are added to the mining park we manage.
On the day you wish to withdraw funds, in whole or in part, we will need to assess the value of your TPMs. The value of your TPMs 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 on the variation of the profitability of the machines in the section that answers the question "Why the profitability of mining machines is not always the same?"
Understanding the basic principle of supply and demand, it is therefore wiser 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 TPMs is as high as possible. You also understand that the funds invested initially are not guaranteed.
When you have finally made your decision, your TPMs 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 TPMs are then destroyed and removed from the fleet.
