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Buying Tokens Guide

RISK WARNING

Buying model tokens is highly risky and speculative. You may lose 100% of your investment.

Before proceeding:

  • ✅ Read the Investor Guide including full risk disclosures
  • ✅ Verify contract addresses independently (do NOT trust unverified sources)
  • ✅ Only invest funds you can afford to lose completely
  • ✅ Understand that Hokusai Protocol does NOT endorse any specific tokens

This is a technical guide only, not investment advice.

This guide provides step-by-step instructions for buying Hokusai model tokens using the bonding curve AMM. Whether you're participating in a launch period or buying existing tokens, this guide covers the technical process.

Prerequisites​

Before you can buy tokens, you'll need:

1. Crypto Wallet​

  • MetaMask (recommended for beginners)
  • Rabby, Rainbow, or other Web3 wallets
  • Wallet must support the network where model is deployed

2. USDC​

  • Sufficient USDC balance for your purchase
  • Plus extra for gas fees (network transaction costs)
  • USDC must be on the same network as the model token

3. Native Token for Gas​

  • Ethereum: ETH for gas
  • Polygon: MATIC for gas
  • Arbitrum: ETH for gas
  • Amount needed: $5-50 depending on network congestion

4. Model Information​

  • Model's AMM contract address
  • Current token price (check before buying)
  • Whether in launch period (Day 0-6) or post-launch

Overview of Buying Process​

1. Connect Wallet → 2. Approve USDC → 3. Get Quote → 4. Set Slippage → 5. Execute Buy

Time Required: 5-10 minutes Complexity: Beginner-friendly Gas Cost: $2-20 depending on network

Step-by-Step Guide​

Step 1: Connect Your Wallet​

Via Web Interface (if available):

1. Navigate to model's page on Hokusai platform
2. Click "Connect Wallet" button
3. Select your wallet (MetaMask, etc.)
4. Approve connection request in wallet
5. Verify correct network selected

Via Etherscan/Block Explorer:

1. Navigate to model's AMM contract address
2. Click "Contract" tab → "Write Contract"
3. Click "Connect to Web3"
4. Approve wallet connection

Step 2: Check Current Price​

Before buying, check the current spot price:

Via Web Interface:

- Price displayed on model page
- Shows price per token in USDC

Via Contract (Read functions):

// Call spotPrice() view function
const price = await amm.spotPrice();
console.log(`Current price: ${ethers.formatUnits(price, 18)} USDC per token`);

Via Block Explorer:

1. Go to AMM contract
2. Click "Read Contract"
3. Find "spotPrice" function
4. Click "Query" → See result in wei (divide by 1e18)

Step 3: Get a Quote​

Calculate how many tokens you'll receive:

Via Web Interface:

1. Enter USDC amount to spend
2. System shows: "You will receive ~X tokens"
3. Price impact percentage displayed

Via Contract:

const usdcAmount = ethers.parseUnits("1000", 6); // $1000 USDC
const tokensOut = await amm.getBuyQuote(usdcAmount);
console.log(`Quote: ${ethers.formatUnits(tokensOut, 18)} tokens`);

// Calculate average price
const avgPrice = usdcAmount / tokensOut;
console.log(`Average price: ${ethers.formatUnits(avgPrice, 6)} USDC/token`);

Important: Quote is an estimate. Actual amount may vary slightly due to:

  • Other transactions executing before yours
  • Network congestion
  • Slippage

Step 4: Approve USDC Spending​

The AMM contract needs permission to spend your USDC:

Via Web Interface:

1. Click "Approve USDC" button
2. Review approval amount in wallet popup
3. Confirm transaction
4. Wait for confirmation (~15 seconds)

Via Etherscan:

1. Go to USDC contract address
2. Click "Write Contract" → "Connect Wallet"
3. Find "approve" function
4. Enter:
   - spender: [AMM contract address]
   - amount: [USDC amount in 6 decimals]
5. Click "Write" → Confirm in wallet

Example (1000 USDC approval):

spender: 0x1234...abcd (AMM address)
amount: 1000000000 (1000 * 10^6)

Pro Tip: Approve exact amount you'll spend, or approve a large amount for multiple purchases.

Step 5: Set Slippage Tolerance​

Slippage protects you from price changes during transaction:

Recommended Slippage:

  • Normal conditions: 1-2%
  • High volatility: 3-5%
  • Launch period: 2-5%
  • Large orders: 5-10%

How Slippage Works:

Quote: 1000 tokens
Slippage: 2%
Minimum tokens: 1000 × 0.98 = 980 tokens

If you receive < 980 tokens → transaction reverts
If you receive ≥ 980 tokens → transaction succeeds

Calculate minTokens:

const quote = await amm.getBuyQuote(usdcAmount);
const slippagePct = 2; // 2%
const minTokens = quote * BigInt(100 - slippagePct) / 100n;

Step 6: Set Deadline​

Deadline prevents transactions from executing at stale prices:

Recommended Deadline:

  • Normal: 5 minutes (300 seconds)
  • Patient: 10 minutes (600 seconds)
  • Urgent: 2 minutes (120 seconds)

Calculate Deadline:

const deadline = Math.floor(Date.now() / 1000) + 300; // 5 minutes from now

Why Deadlines Matter:

Scenario without deadline:
- You submit buy at price $0.50
- Transaction pending for 30 minutes
- Price increases to $0.80
- Transaction executes at much worse price
- You overpay significantly

Scenario with deadline:
- You submit buy at price $0.50
- Set 5-minute deadline
- If not executed in 5 minutes → reverts
- You can resubmit at current price

Step 7: Execute Buy​

Via Web Interface:

1. Review purchase details:
   - USDC amount spending
   - Estimated tokens receiving
   - Price impact
   - Slippage tolerance
2. Click "Buy Tokens"
3. Review transaction in wallet
4. Check gas fee is reasonable
5. Confirm transaction
6. Wait for confirmation

Via Contract (Etherscan):

1. Go to AMM contract "Write Contract"
2. Find "buy" function
3. Enter parameters:
   - minTokens: [calculated with slippage]
   - deadline: [timestamp]
   - payableAmount: [USDC amount in wei]
4. Click "Write"
5. Confirm in wallet

Via JavaScript/ethers.js:

// Complete example
const amm = await ethers.getContractAt("HokusaiAMM", ammAddress);
const usdc = await ethers.getContractAt("IERC20", usdcAddress);

// 1. Approve USDC
const usdcAmount = ethers.parseUnits("1000", 6);
await (await usdc.approve(ammAddress, usdcAmount)).wait();
console.log("USDC approved");

// 2. Get quote
const quote = await amm.getBuyQuote(usdcAmount);
console.log(`Quote: ${ethers.formatUnits(quote, 18)} tokens`);

// 3. Calculate minTokens (2% slippage)
const minTokens = quote * 98n / 100n;

// 4. Set deadline (5 minutes)
const deadline = Math.floor(Date.now() / 1000) + 300;

// 5. Execute buy
const tx = await amm.buy(minTokens, deadline);
console.log(`Transaction submitted: ${tx.hash}`);

// 6. Wait for confirmation
const receipt = await tx.wait();
console.log(`Transaction confirmed in block ${receipt.blockNumber}`);

// 7. Check balance
const balance = await token.balanceOf(wallet.address);
console.log(`New token balance: ${ethers.formatUnits(balance, 18)}`);

Step 8: Verify Transaction​

Check Transaction Success:

1. Transaction hash displayed after confirmation
2. View on block explorer (Etherscan, etc.)
3. Verify:
   - Status: Success ✓
   - USDC spent
   - Tokens received
   - Gas cost

Check Token Balance:

const balance = await token.balanceOf(yourAddress);
console.log(`Token balance: ${ethers.formatUnits(balance, 18)}`);

Common Issues & Solutions​

Issue 1: "Insufficient Allowance"​

Cause: USDC not approved or approval too low

Solution:

1. Check current allowance:
   usdc.allowance(yourAddress, ammAddress)
2. Approve sufficient amount:
   usdc.approve(ammAddress, amount)
3. Wait for approval confirmation
4. Retry buy transaction

Issue 2: "Slippage Too High"​

Cause: Price moved unfavorably, received fewer tokens than minTokens

Solutions:

  • Increase slippage tolerance (3-5%)
  • Reduce purchase amount (smaller orders have less impact)
  • Wait for lower volatility period
  • Split order into multiple smaller buys

Issue 3: "Transaction Expired"​

Cause: Transaction didn't execute before deadline

Solutions:

  • Increase deadline (10-15 minutes)
  • Use higher gas price for faster confirmation
  • Check network congestion
  • Resubmit with new deadline

Issue 4: "Insufficient USDC Balance"​

Cause: Not enough USDC in wallet

Solution:

1. Check USDC balance
2. Transfer more USDC to wallet
3. Ensure USDC is on correct network
4. Retry after USDC arrives

Issue 5: "Out of Gas"​

Cause: Estimated gas too low for transaction

Solutions:

  • Manually increase gas limit (try +50%)
  • Ensure sufficient native token (ETH, MATIC, etc.) for gas
  • Wait for lower network congestion
  • Try again with higher gas price

Issue 6: Transaction Pending Too Long​

Cause: Gas price too low, transaction stuck in mempool

Solutions:

  • Speed up transaction (replace with higher gas)
  • Cancel transaction (replace with 0-value tx)
  • Wait for network congestion to decrease
  • Use gas price estimator (ethgasstation.info)

Best Practices​

Timing Your Purchase​

Good Times to Buy:

  • ✅ After major fee deposits (reserve increased)
  • ✅ During low network activity (cheaper gas)
  • ✅ After token minting events (supply dilution = lower price)
  • ✅ Early in launch period (Day 0-2)

Times to Avoid:

  • ❌ During extreme volatility
  • ❌ Right after your own large order (price impact)
  • ❌ Network congestion (high gas fees)
  • ❌ Without checking recent price action

Order Sizing​

Small Orders (< 1% of reserve):

  • Minimal price impact
  • Low slippage needed (1-2%)
  • Fast execution
  • Good for testing

Medium Orders (1-5% of reserve):

  • Moderate price impact
  • Medium slippage needed (2-5%)
  • Normal execution
  • Good for regular purchases

Large Orders (> 5% of reserve):

  • Significant price impact
  • High slippage needed (5-10%)
  • May benefit from splitting
  • Consider TWA buying

Very Large Orders (> 10% of reserve):

  • ⚠️ Very high price impact
  • Consider splitting across hours/days
  • Coordinate with team if institutional
  • Use time-weighted averaging (TWAP)

Gas Optimization​

Save on Gas Fees:

1. Buy during low network activity:
   - Early morning UTC
   - Weekends
   - Avoid Monday mornings

2. Use gas price trackers:
   - ethgasstation.info
   - gasnow.org
   - Built-in wallet estimators

3. Batch operations:
   - Approve large amount once
   - Buy multiple times without re-approving

4. Use Layer 2 networks:
   - Polygon (low fees)
   - Arbitrum (medium fees)
   - Check which network model uses

Security Tips​

Protect Yourself:

☐ Verify AMM contract address (check official sources)
☐ Start with small test purchase
☐ Never share private keys or seed phrases
☐ Double-check transaction details before confirming
☐ Use hardware wallet for large amounts
☐ Verify token contract address matches
☐ Be cautious of phishing websites
☐ Check for smart contract audits

Launch Period Buying​

Special Considerations (Days 0-6)​

During Launch:

  • ✅ Selling is disabled (buy-only period)
  • ✅ Can buy anytime during 7 days
  • ⚠️ Cannot exit until Day 7+
  • ⚠️ Price only goes up (no sells)

Strategies:

Early Entry (Day 0-1):

Pros:
- Lowest prices
- First-mover advantage
- Maximum appreciation potential

Cons:
- High risk if launch fails
- Locked for full 7 days
- Unknown demand

Dollar-Cost Averaging (Days 0-6):

Day 0: 25% of allocation
Day 2: 25% of allocation
Day 4: 25% of allocation
Day 6: 25% of allocation

Pros:
- Reduced timing risk
- Average price
- Lower regret

Cons:
- Miss some early gains
- More transactions = more gas

Late Launch (Days 5-6):

Pros:
- See actual demand
- More information
- Lower lockup time

Cons:
- Higher prices
- Less appreciation potential
- FOMO risk

After Your Purchase​

Monitor Your Investment​

Track These Metrics:

☐ Current token price
☐ Your average purchase price
☐ Unrealized profit/loss percentage
☐ Reserve balance growth
☐ API usage and fee deposits
☐ Token minting events
☐ Community activity

Tools:

// Create monitoring function
async function monitorPosition(ammAddress, yourAddress) {
    const amm = await ethers.getContractAt("HokusaiAMM", ammAddress);
    const token = await ethers.getContractAt("IERC20", await amm.token());

    // Get your balance
    const balance = await token.balanceOf(yourAddress);

    // Get current price
    const price = await amm.spotPrice();

    // Calculate position value
    const value = balance * price / BigInt(1e18);

    console.log(`Balance: ${ethers.formatUnits(balance, 18)} tokens`);
    console.log(`Price: ${ethers.formatUnits(price, 18)} USDC`);
    console.log(`Value: ${ethers.formatUnits(value, 6)} USDC`);
}

Set Up Alerts​

Price Alerts:

  • Set target sell price
  • Alert when price increases X%
  • Alert when price decreases Y%

Event Alerts:

  • Monitor FeesDeposited events
  • Track large buy/sell transactions
  • Watch minting events

Next Steps After Buying​

  1. Record Transaction

    • Save transaction hash
    • Note purchase price
    • Track for tax purposes

  2. Join Community

    • Follow model updates
    • Monitor announcements
    • Engage with developers

  3. Plan Exit Strategy

    • Set price targets
    • Define holding period
    • Determine stop-loss

  4. Consider Selling (Post-Launch Only)

    • Review Selling Guide
    • Plan profit-taking strategy
    • Understand tax implications

Need Help?​

Good luck with your purchase!

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