> For the complete documentation index, see [llms.txt](https://docs.bemo.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bemo.fi/welcome-to-bemo/bmgram/bmgram-explained.md).

# bmGRAM explained

The smart contract determines the price of bmGRAM to GRAM after each validation round. It is calculated by adding the total GRAMs deposited and staking rewards, subtracting fees, and then dividing this result by the minted bmGRAMs. This formula eliminates the need for oracles since the underlying asset and staking rewards are denominated in GRAMs.

Every bmGRAM holder can unstake their tokens at any time, following a cooldown period of 36 to 72 hours. They will receive their GRAMs and the accumulated rewards.

**bmGRAM is fully backed by the bemo stake pool, ensuring there is no possibility of a fundamental depeg within the app.**

The smart contract defines the Fundamental price, representing the intrinsic value of bmGRAM. The market price is driven by supply and demand dynamics on exchanges where bmGRAM is traded. Any Market price depeg creates an arbitrage opportunity as the unstaking option is always available on the bemo application.

<figure><img src="/files/kdthZYENPnABygOIm6Xe" alt=""><figcaption></figcaption></figure>

## Example

You deposit 100 TONs into bemo finance, receiving 100 bmTONs in return. The exchange rate is 1 stTON to 1 TON at the time of this deposit. TON Pool now consists of 100 TONs.

Over time, bemo accumulates a staking reward of 5%. This reward is added to the TON pool, increasing its total value by 5 TONs. As a result, the TON pool now contains 105 TONs.

However, despite the growth of the TON pool, your bmTON balance remains unchanged at 100 bmTONs. What does change is the value of each stTON. The value of 1 bmTON increases by 5% to 1.05 TONs.