Pending Approval
SecureMint (SMT)
Financial Feasibility Report — February 2026
Total Startup
$1.05M
One-time costs
Monthly Burn
$144.9K
Operating costs
Funding Raised
$2.0M
Seed + Series A
Year 2 ROI
30.0%
Base case
Funding Required
$3.35M
Gap: $1.35M
Break-Even TVL
$120.8M
At current fee structure
Ops Profitable
Month 16
Revenue > monthly costs
CAUTION: Current funding of $2.0M falls $1.35M short of the recommended $3.35M minimum. Review Section 8 for paths to viability before proceeding to implementation.
02 / 08

Token & Collateral Structure

Token Parameters
Name / SymbolSecureMint Token / SMT
Peg Target$1.00 USD
Total Supply100,000,000
Circulating45,000,000 (45%)
Treasury Held55,000,000 (55%)
Backing Ratio105%
Epoch Mint Cap5,000,000 / 24h
Redemption Fee10 bps (0.1%)
Insurance Fund$2,500,000
Collateral Allocation — $105,000,000
$105M
Total Backing
USDC60% — $63.0M
US Treasury Bonds25% — $26.3M
ETH10% — $10.5M
Liquid Reserves5% — $5.3M
DEX Liquidity
$15.0M
Uniswap V3 + Curve
CEX Liquidity
$8.0M
Binance, Coinbase, Kraken
Daily Volume
$3.2M
Average daily trading
03 / 08

Startup Costs — $1,052,250

One-time investment required before mainnet launch
Security
$285,000
Deployment
$210,000
Development
$175,000
Legal
$160,000
Contingency
$137,250
Marketing
$85,000
Security Allocation
27.1%
Largest spend area: audits ($120K), formal verification ($50K), bug bounty ($100K)
Deployment Cost
$210K
2 chains (Ethereum + Polygon) with $100K liquidity seeding each
Contingency Buffer
15%
$137,250 reserved for unexpected costs and timeline overruns
04 / 08

Monthly Operating Costs — $144,900/mo

Annual operating burn: $1,738,800  |  Pre-revenue runway: 13 months
Cost Breakdown by Category
Team (9 FTE)
$98,000
Other
$30,000
Services
$9,500
Infrastructure
$7,400
Team Detail — $98,000/mo (67.6%)
RoleFTEMonthly
Developers3$36,000
Security1$15,000
Operations2$16,000
Marketing2$16,000
Legal1$15,000
Runway Indicator
13 months pre-revenue burn rate
0 13 mo 24 mo
05 / 08

Revenue Projections — 24 Month Forecast

Monthly Revenue vs Operating Costs
$0 $100K $200K $300K M1 M6 M12 M16 M20 M24 $144.9K Break-Even $300K
Revenue Streams
Mint Fees (0.1%)~33%
Burn Fees (0.1%)~33%
Yield Share (30%)~33%
Year 1 Revenue
$335,000
TVL ramp $0 to $20M
Year 2 Revenue
$2,335,000
TVL ramp $20M to $100M
06 / 08

Profit & Loss — Cumulative View

Cumulative Net Income — 24 Month Projection
$0 -$1.0M -$2.0M -$2.6M M0 M6 M12 M16 M21 M24 -$2.56M -$1.86M -$1.05M
Year 1 Net
-$2.46M
Year 2 Net
+$596K
Break-Even TVL
$120.8M
Funding Gap
$1.35M
Inflection at Month 16: Monthly revenue ($146,667) first exceeds costs ($144,900). The cumulative deficit peaks at -$2.56M then begins recovering, but does not reach $0 within 24 months at current funding level.
07 / 08

Stress Tests & Risk Analysis

Monte Carlo simulation: 10,000 iterations, 95% confidence interval
S1: Bank Run Pass w/ Warning
50% redemption in 24h
Peg Nadir$0.970
Min Backing101.2%
Recovery402 min
S2: Oracle Attack Pass
30% deviation target
Max Deviation2.1%
Attack Cost$47M
Recovery12 min
S3: Whale Dump Warning
28M SMT (80% of top 10)
Peg Nadir$0.937
>5% Dev Time132 min
Recovery258 min
S4: Death Spiral Pass
60% ETH crash ($3500 to $1400)
Peg Nadir$0.958
Insurance Used75.6%
Min Backing100.1%
S5: Flash Loan Pass
$100M flash loan attack
Extractable$0
Attacker P&L-$89,657
Max Deviation0.1%
S6: Liquidity Crisis Warning
100% DEX liquidity removal
Peg Nadir$0.948
Spread Peak210 bps
Recovery415 min
Core Invariants — All Hold Across All Scenarios
INV-1Supply ≤ Backing
INV-2Oracle verified pre-mint
INV-3Rate limits enforced
INV-4No bypass path
08 / 08

Investment & Path Forward

Funding Rounds
RoundAmountValuation
Seed$500,000$5,000,000
Series A$1,500,000$15,000,000
Total$2,000,000
ROI Projections (Year 2)
Conservative 15.0%
Base Case 30.0%
Optimistic 45.0%
Go / No-Go Criteria
Funding ≥ $3.35M Fail
Break-even < 24 months Review
ROI > 0% (Year 2) Pass
Contingency > 10% Pass
Recommended: Option D — Hybrid Approach
Additional raise+$500K
Dynamic fees0.1%-0.5%
Phased hiring7 FTE to 9
Defer MSB license-$50K
Est. break-evenMonth 18-20
Required TVL~$85M
Next Step: Secure additional $500K funding and implement dynamic fee structure (REC-05) to achieve break-even by Month 18-20 with $85M TVL target.
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