> For the complete documentation index, see [llms.txt](https://docs.mydiscocats.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.mydiscocats.com/product/liquid-launch/guide.md).

# Participation Guide: Liquid Launch

**Step 1: Participate in the Sale**

* Users contribute funds to a **fixed-price sale** in exchange for an NFT-backed tier based allocation.
* The funds are locked within the vault until TGE.

#### **Step 2: Trade Your Allocation (Optional)**

* Users can **list their allocation NFT** on marketplaces within selling period and sell it to others who want exposure.
* The allocation price may increase if demand rises before TGE, allowing traders to **profit from pre-market hype**.

#### **Step 3: Exit Anytime (With Penalty)**

* Users can withdraw their funds before TGE by paying a penalty.
* The penalty fees are **used to buy back project tokens**, benefiting those who remain in the sale.

#### **Step 4: Claim Tokens at TGE**

* Once the project’s TGE occurs, users redeem their **allocation NFT** for the corresponding tokens.
* The allocation NFT is **burned upon claiming**.

## Why Use Liquid Launchpad?

### **For Projects:**

* **Better Price Discovery**: See how the market values your token before you go live.
* **Instant Liquidity**: Receive capital immediately with no sell pressure at TGE.
* **Universal Access**: Accept liquidity from any token or chain using Zapper v3 routing.
* **Reduces Sell Pressure:** Strengthens backing ratios by reinvesting fees into token buybacks and premarket trading ensures allocation goes into good hands.
* **Innovative Fundraising Model:** Provides a dynamic and liquid approach to raising funds with increased investor confidence.
* **Free Marketing & Hype**: Built-in speculation and trading generate buzz.
* **Extra Revenue Streams**:
  * **NFT Royalties** on allocation trades
  * **Early exit fees** go into protocol reserves or buybacks
  * **Dynamic Bribe Integration** to incentivize staying or staking

Liquid Launchpad revolutionizes IDOs by bringing liquidity, flexibility, and strategic trading opportunities to both users and projects. No more waiting for months—embrace the future of token launches with a system that works for everyone.

### Benefits to Users

* **Early Access to Promising Projects:** Get allocation before the general public — without needing to compete in FCFS chaos or gas wars and you never miss out on promising projects.
* **Tradable Allocations (Liquid from Day 0):** Your allocation is minted as an NFT, making it tradable immediately. No need to wait for TGE — exit or flip anytime on secondary markets.
* **Flexible Exit Option:** Changed your mind? Withdraw early with a small fee — no lock-ins. Exit strategy built-in.
* **Reduced Risk Exposure:** Allocation NFTs are backed, and all the fees go toward buybacks — strengthening your position so you always get more tokens then you buy.
* **Time-Based Borrowing:** Instead of selling, borrow against your allocation NFT and further loop.&#x20;
* **Borrowing Interest & Liquidation Penalty Goes to You:** Interest and liquidation fees are used to buy back more tokens. That means even passive holders benefit from increased backing.
* **Cross-Chain, Cross-Token Participation:** Use Zapper v3 routing to deposit into sales using any token from any chain — seamless and frictionless.
* **Speculation + Participation:** Speculate on allocation value before the token even launches, or just trade the hype — all within a safe, transparent system.


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