Faq

Basic Concepts

1. What are NCUs, and how do they work?

NCU (Neural Compute Unit) is a standardized unit of compute power available on the platform, similar to how electricity is measured in kilowatt-hours (kWh). NCUs represent the right to access and utilize compute power on the platform, ensuring users can efficiently manage and allocate their computational resources. Based on the computing power of different GPUs, we define the computing power generated by Nvidia A100 80G PCIe running continuously for 24 hours as one standard NCU.

2. What is the AI Computing Pool?

The AI Computing Pool is the total collection of compute resources registered and made available by AI computing power suppliers through the Supplier Portal. It represents the aggregate capacity of AI compute power that the platform can offer to consumers, ensuring a reliable and scalable source of computational resources.

3. What happens if a supplier delists their resources?

Suppliers can delist their resources at any time but must fulfill any compute power requests that have already been scheduled. Once delisted, their resources will no longer be available for new NCU sales or delivery requests, ensuring that existing commitments are honored.

4. How to measure the AI Computing Pool capacity and usage?

• Computing Pool Capacity: Measured in NCUs (Compute Units), reflecting the total compute resources available on the platform at any given time or over a specific period.
• Computing Pool Usage: Refers to how much of the registered compute power is actively being consumed or has been scheduled for future use, ensuring efficient utilization of resources.

NCU Trading

5. Why sell NCUs instead of direct resource usage?

Selling NCUs standardizes and simplifies the allocation and management of AI compute power, providing flexibility, scalability, and efficient resource management. This approach ensures that users can easily access and utilize the computational resources they need.

6. When NCUs act as tradable assets, how are they related to compute power?

NCUs are a measure of compute power and represent the right to access and utilize this power on the platform. Their value is directly tied to the compute power they represent, ensuring that users can efficiently manage their computational needs.

7. How does the platform decide the supply of NCUs for initial sale?

The platform decides the quantity of NCUs available for initial sale based on multiple factors, including total registered compute power, current NCUs in circulation, projected bookings, and market activity. This ensures a balanced supply and demand for computational resources.

8. What is the settlement process in a transaction?

The settlement process includes the final confirmation of a transaction, the exchange of funds and assets. The platform ensures that both parties receive their respective assets (funds and NCUs) and officially completes the transaction, ensuring a smooth and reliable exchange.

9. How does the platform handle disputes?

The platform has a dispute management system to address various issues arising from user interactions, transactions, and service delivery, ensuring disputes are resolved in a structured, transparent, and efficient manner.

Market and Pricing

10. What is the difference between Initial Sale, Primary Market, and Secondary Market for NCUs?

Initial Sale refers to the very first sale of NCUs directly by the platform.

Primary Market is where NCUs are sold for the first time by the platform to buyers.

Secondary Market is where NCUs that have already been purchased can be resold by the original buyers, ensuring flexibility in managing computational

11. What is the lifecycle of an NCU?

The lifecycle of an NCU includes several stages, from creation, trading, booking, to eventual consumption. Each stage is tied to the availability of compute power and the status of the NCU itself.

1. Creation/Issuance: NCUs are issued by the platform during the initial sale.
2. Trading in the Primary and Secondary Market: NCUs can be purchased from the platform or resold by existing NCU holders on the secondary market.
3. Locked (Pending Payment): When a buyer purchases NCUs but payment has not yet been completed, the NCUs become temporarily locked.
4. Reserved (Scheduled for Compute Power): Once a user schedules compute power for a future date, the required NCUs are reserved.
5. Frozen (Due to Security or Account Issues): In certain cases, NCUs may be frozen due to security concerns, account suspensions, or compliance violations.
6. Consumed (Used for Compute Power): Once the compute power is delivered and used, the NCUs are considered consumed.
7. Expired (In Certain Cases): If NCUs are not used or resold within a predefined time, they may expire.

12. What are the possible states of an NCU?

NCUs can exist in multiple states throughout their lifecycle, each representing a different phase in the use, trading, or restriction of the NCU.

1. Available NCUs: Fully tradable or ready to be used without any restrictions.
2. Locked NCUs: Temporarily unavailable due to pending payments.
3. Reserved NCUs: Allocated for future compute power usage but not yet consumed.
4. Frozen NCUs: Restricted due to security concerns or account issues.
5. Consumed NCUs: Fully used to access compute power and no longer available for trade or reuse.
6. Expired NCUs: Expired due to platform policies or time constraints.

13. How does the platform decide the supply of NCUs for initial sale?

The platform decides the quantity of NCUs available for initial sale based on multiple factors to ensure the supply of compute power meets demand while avoiding overcommitment or underutilization.

Key factors include: - Total registered compute power - Compute power availability and fluctuations - Lead time from NCU purchase to resource usage - Current NCUs in circulation - Estimated NCU bookings and usage trends - Buffer for demand fluctuations and emergencies - Compute power already booked - Secondary market activity - Platform's NCU supply strategy - Future commitments from suppliers - Technical and system constraints

14. How is NCUs in circulation calculated?

NCUs in circulation refer to the total number of NCUs that are actively tradable or available for use on the platform but have not been restricted, reserved, or consumed.

Formula:

NCUs in Circulation = Total Issued NCUs (Initial Sales) - Reserved NCUs - Locked NCUs - Frozen NCUs - Consumed NCUs - Expired NCUs

15. What is the difference between Circulated NCUs and NCUs available on the secondary market?

Circulated NCUs include all NCUs that are still in circulation, whether they are listed for sale on the secondary market or held in user accounts, excluding those that are reserved, locked, frozen, or consumed.

NCUs available on the secondary market are a subset of Circulated NCUs, referring to those NCUs that have been actively listed for sale by users.

16. How is the price of NCUs determined?

The price of NCUs is set through two mechanisms: fixed pricing for initial sales on the platform and dynamic pricing in the secondary market.

1. Fixed Pricing in the Primary Market: Based on the cost of compute power, platform fees, and demand adjustments.
2. Dynamic Pricing in the Secondary Market: Based on supply and demand, with sellers setting their prices according to market conditions, buyer interest, and personal profit goals.