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The user will Venmo their hedged money to us at the beginning of the week. At the end of the week, the app will calculate how many times you went to the gym and, respectively, will give you the amount of money you should receive back into your Venmo. The consequences and rewards are set at the beginning of the week, so you will always know how much money you will be gaining or losing depending on how true you stay to your commitment.
The interest rate on your money is calculated by how committed other users on the app are. For example, if there are many users who stay true and committed to their goal more than you, you will be earning a smaller interest rate than they will. On the other hand, if you stay more committed than other users of the app, your interest will be higher.
The interest rate is variable as we pay out users based off the money is lost. During the soft launch we will guarantee payouts 7%+. Once we launch we expect our interest rate to fluctuate within a similar range.
