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Ongoing Index Maintenance

The index is maintained on a quarterly basis in two phases:

Determination Phase

The Determination Phase takes place during the third week of March, June, September, and December. It is the phase when the changes needed for the next Reconstitution Phase are determined.

  • Additions and deletions: The NFT collections being added and deleted from the index calculation are determined during the third week of the month and published before monthly reconstitution.
  • Weighting: NFT collections are weighted by their floor market cap. To avoid concentration risk a constant capping factor may be assigned to NFT collections that would otherwise dominate the index. Currently the market cap of Cryptopunks is capped by a capping factor of 0.3.

Reconstitution Phase

Following publication of the Determination Phase outcome, the index composition will change to the new weights on the first working day of the following month: Components will be added or removed, and weights adjusted.

Any implementations based on the Scalara NFT Index will be expected to execute any buy and sell transactions on or shortly after the index Reconstitution Date.

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