Cooperative 1.0.0

The Core Innovation: Unlocking Your Savings

The central promise of our platform is to turn your savings into a dynamic financial tool. Instead of liquidating your assets and forfeiting future growth when you need funds, our model provides a smarter alternative.

Here's how it works for a member:

1. You Save: A member deposits ₦1,000,000 into their savings, which is set to earn a 10% annual dividend (₦100,000).
2. You Access Liquidity: The member can then take a loan for up to 100% of their savings—in this case, ₦1,000,000—while the original ₦1,000,000 remains in their account, earning dividends.
3. The Net Loan Cost: The member pays a competitive interest rate on the loan, for example, 15% (₦150,000). The actual cost to the member is the Net Loan Cost—the difference between the interest paid and the dividend earned (₦150,000 - ₦100,000 = ₦50,000).

For a small, predictable fee, the member gains immediate access to their cash without sacrificing the long-term growth of their nest egg. This provides unparalleled financial flexibility, far surpassing traditional banking products and avoiding the predatory rates of loan sharks.

The Engine Behind the Magic: The Dual Vault System

This innovative model is powered by a sophisticated and secure capital management strategy called the Dual Vault System. All member savings are pooled and strategically allocated to ensure both liquidity and growth:

• Liquid Reserve: A significant portion of the total savings pool (e.g., 33%) is held in a liquid reserve. This fund is dedicated solely to disbursing loans to members, ensuring funds are available when needed.
• Yield Engine: The majority of the capital (e.g., 67%) is invested in secure, high-return financial instruments, such as mutual funds, which are projected to generate returns (e.g., 21% annually). The profits from this yield engine are used to pay member dividends and ensure the cooperative's profitability and sustainability.

To manage simultaneous loan demand and guarantee fairness, the system incorporates;

Triple Liquidity Safeguards: a cap on total loans disbursed at any given time, a priority-based queuing system for loan applications (e.g., emergencies first), and a replenishment model fueled by loan repayments and investment returns.

Key Features and Member Benefits

• Uninterrupted Savings Growth: Earn competitive dividends on your total savings, even when you've borrowed against them.
• Instant Liquidity: Access up to 100% of your savings value to handle emergencies, invest in business, or purchase assets without disrupting your financial future.
• Zero Default Risk: Because all loans are fully collateralized by a member's own savings, the system is inherently secure, protecting the cooperative and all its members.
• Ultimate Convenience: The entire platform is managed through WhatsApp. Members can perform KYC, set contribution amounts, view balances, apply for loans, and calculate their Net Loan Cost directly from their phone.
• Transparent and Fair: The system features automated, state-based logic for everything from KYC verification to transaction processing. Members have a clear view of their financial status, with balances updated before and after every transaction for complete auditability.
• Intelligent Credit System: A built-in credit score helps prioritize loan approvals, rewarding responsible financial behavior and ensuring a fair process for all members.

In summary, Cooperative by Worx transforms savings from a static nest egg into a powerful, flexible financial resource. It is a win-win system where members gain instant liquidity at a minimal cost, and the cooperative earns returns through a secure, dual-strategy investment model. We are not just offering a savings product; we are introducing a new way to achieve financial freedom.