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=== '''Fixed Period, Risky Payout''' === ''Main page: [[Fixed-period BOND|Fixed-period BONDS]]'' Given a fixed pay period <math>L_B</math> the developer is given the number <math>q</math> of BOND tokens that match <math>$b</math> based on the present value. This amounts to solving the equation <math>qPVf_B^1=b</math> for <math>q</math>. Once <math>q</math> and <math>L_B</math> are fixed, the payout will be a random variable, with expected value <math>$b</math>. This solution leaves the ultimate value of a BOND token to chance, dependent on the random variables of the fee rate <math>f'</math>, the interest rate <math>r</math>, and the number <math>R</math> of other BOND tokens that will be minted during the time <math>t<L_B</math>. The actual payout will depend on how accurate your estimates of these random variables are. However, the contract itself is deterministic (i.e., fixed). It performs algorithmically as promised, though the ultimate payout is a gamble. Almost every traditional financial tool has similar risks. For example, even the instrument which seems like the most predictable contract possible, a long-term fixed-rate bond, actually carries the risk that the interest rates will grow higher than expected before the bond expires, which changes the bond’s ultimate valuation. However, there is an approach that eliminates even this risk:
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