Contribution percentage calculating method in investment with the capability of dynamic analysis of investment elements

Description

DescriptionTitle of Invention : Contribution Percentage Calculating Method in Investment with the Capability of Dynamic Analysis of Investment ElementsTechnical Field

[0001] The technical field of this invention is pertinent to a computerized process in the realm of economics and the financing of investment projects with financial contribution.Background Art

[0002] Application number 2935847 is filed in the Canadian patent office under the name INTERACTIVE METHODS AND SYSTEMS FOR CONTROL OF INVESTMENT DATA INCLUDING DEMOGRAPHIC RETURNS**. The summary of this invention is as follows:

[0003] A computer-implemented method, system, and apparatus for managing investment savings of individuals through an investment vehicle suitable for retirement, estate or general investment planning. The invention establishes the mechanics of the operations to create an open-end investment fund as a means for individual participants to earn both market returns on their investments and demographic returns (DR) on the actual demographic experience of the pool of investors who participate in the investment fund. Individuals can invest in the fund and make additional deposits and withdrawals at any time. Investors specify a payout schedule, and those who sell their investments, as scheduled, earn full returns, combining market returns and the DR. Investors who make unscheduled withdrawals from the fund, receive lower returns. The investment fund is customized, and administered by computer software that is available to both participants in the fund and to asset managers who offer the fund to investors.

[0004] While this invention may appear similar to the claimed invention on the surface, it differs significantly in the details of its method and the results obtained. For instance, in the claimed invention, the daily calculation method of Elements differs from the approach disclosed in this invention. This difference leads todifferent results obtained for estimating the investment value of each investor in the system output.Technical Problem

[0005] In projects where multiple investors contribute financially, especially under inflationary conditions, various issues typically arise at different stages of the project that affect the project's integrity and the investors' rights. Some of these issues include the following:• Restrictions on investors regarding the timing and amount of investment are such that, in order to equitably benefit from the project, all investors must contribute their funds simultaneously and in equal amounts to the investment process. If an investor delays in making the payment within the specified deadline, this negligence, due to the delays caused, results in the infringement of the rights of other investors.• The investors' lack of precise information about the updated amount of their investment.• The inability for an investor to enter the project at any time during its execution due to the impossibility of accurately calculating the amount of contribution.• The inability to create reasonable and financial benefits for investors who make payments earlier than others.• The absence of an accurate basis for investors to compare the investment made, with inflation indices and capital goods.• After depositing the money, it is impossible to withdraw money or take a portion of it.• The investors' lack of precise and up-to-date information about the amount of investment made and their amount of contribution in the investments.• The inability to invest with small amounts.• The inability to provide a list, outlining how much of each investor's money and for what purpose it has been spent (invested).• Issues arising from members withdrawing from further investment, such as calculating the share of the remaining investors when faced with new investors.• The inability to distinguish the real added value of the project from the inflation generated during the investment period.

[0006] This process, with the precise calculation methods and based on its algorithm, can address the issues raised so that the interests of the overall project and other investors are preserved.Solution to Problem

[0007] Calculating investors' contribution percentage in the project. If the daily expenditures of a project are categorized into units known as Elements, and these Elements are updated daily in accordance with the daily inflation rate, then if a profit or loss is discovered in the project, it can be divided among these Elements in proportion to their updated value.

[0008] At this point, if the investors' contribution percentage in each Element, based on their amount of money prior to the formation of the Element is ascertained and documented, then the sum of investors' contribution in various Elements will be equal to their contribution in the project.

[0009] This method requires a system such as a computer, computer network or other programmable devices capable of processing and storing data and the following inputs to accurately calculate the investors' contribution percentage in an investment project:• The list of deposits made by investors in the project together with their dates• The List of the expenditures incurred for the project together with their dates• The list of inflation index prices during the project's progress timeline and their dates

[0010] By providing these inputs, the system proceeds through the following steps so as to calculate and record each investor's contribution percentage made in theproject. The flowchart of performance and coordination between various units of the system and their connection in order to calculate the investors' contribution percentage is illustrated in Figure 1 .

[0011] Step 1- Expenditure Processing Unit and Element Production:

[0012] The unit receives the list of expenditures incurred for the project together with their dates from input, and puts the sum of the expenditures associated with each day into a unit referred to as the Element (E). On dates when no expenditure has been incurred, the Element is assumed to hold a value of zero.

[0013] The output of this unit is a table that includes the date, from the start of the project (initial expenditure) to the current day and the values of the Elements and is stored in the database.

[0014] An investment Element (E) represents the cumulative expenditures incurred within a specific period (e.g., one day). These expenditures are funded through the accounts of investors who contributed funds to the project prior to the establishment of the Element. These investors referred to as the owners of the Element. Investors' contribution percentage in the Element is determined based on the amount of their money relative to the total money available in the project.

[0015] The Element can also be defined for periods shorter or longer than a day, depending on the projected duration of the project and the technical capabilities for implementing the system.

[0016] It should be noted that the investors' contribution percentage in an Element is determined before the formation of the Element. Therefore, changes in the amount of investors' money during the formation of an Element do not affect their ownership of that Element. These changes will impact the ownership percentage of the subsequent Element. Therefore, the balance in this system refers to the balance before the initiation of the Element period, and any deposits made during the formation of the Element can be spent in the next Element.

[0017] In light of what has been said, the project initiation date refers to the date of the initial expenditure when money is withdrawn from investors' accounts and invested in the project. Therefore, the date of the first deposit should be at least one day prior to the initial expenditure, not on the same day.

[0018] Step 2- Fund Unit and Calculating the Investors' Contribution Percentage in the Elements:

[0019] Within this unit, a fund is established that, in addition to managing the deposits and withdrawals of investors' money, calculates the investors' contribution percentage in the Elements of each day.

[0020] To this end, the system receives the list of deposits made by investors in the project together with their dates from input and by using a dedicated module, it creates records in the database from the date of the first deposit to the current day. For each day, it calculates and records the name of each investor and the following alongside the investor's name:• The investor's fund balance (F): It is equal to the algebraic sum of all deposits and withdrawals made by the investor up to that day.• Total fund balance: It is equal to the sum of the fund balances of all investors on that day.• The investor's contribution percentage in the Element for the next day: It is obtained by dividing the investor's fund balance by the total fund balance for each day. In other words, to calculate each investor's contribution percentage for today, we must utilize the investor's fund balance and the total fund balance from yesterday.

[0021] Therefore, if the fund balances of investors on day (j-1 )th are F1 (j-1), F2Q-I) Fkg-1) Fmo-1), then:

[0022] The contribution percentage of the k-th investor in the j-th Element (Fk(j-1 )%) =Ffc(j-i) x 100S F(j-l)

[0023] Next, to update the fund balance, the expenditures, which are categorized as Elements, should be deducted from the fund.

[0024] Therefore, the table of Elements generated in the first step is retrieved from the database, and the value of each Element, in chronological order, is deducted from the investor's fund balance according to the specified contributionpercentage, and then the investor's fund balance, the total fund balance and contribution percentage are updated by the system and stored in the database.

[0025] The deduction of Element amounts from investors' fund accounts can be done simultaneously with the formation of the fund.

[0026] The output of this unit is a table that includes, for each day, the names of all investors and their contribution percentages in the Elements for the following day. These data are automatically updated and stored in the database at the end of each day, with the date changing accordingly.

[0027] Figure 2 illustrates the relation between investors' fund balances and their respective amount of contribution in the next day Element.

[0028] Step 3- Inflation Index Processing Unit and Compound Daily Growth Rate Calculation:

[0029] This unit is responsible for generating the Compound Daily Growth Rate (daily inflation rate) from the project initiation date (initial expenditure) to the current day. The Compound Daily Growth Rate is calculated based on the price changes of the inflation index over time. Investors agree on the price of goods or an item of them as an inflation index to update their capital.

[0030] This index could represent the price of a single item or a portfolio of goods utilized in the project, or even the Consumer Price Index (CPI). If multiple items are used, their impact on the portfolio can be measured based on their usage in the project to select a more accurate index for updating purposes.

[0031] Using the compound growth formula, the system determines the Compound Daily Growth Rate (CDGR) based on changes in the index price over time.

[0032] The input for this unit can be manually entered by the user or be automatically retrieved from websites that display the index prices.

[0033] To apply the impact of inflation, it is necessary to input the index price at least twice: once on the project initiation date (initial expenditure) and once on the current day. In this part of the system, it is possible to input the predicted index price changes for future days. This allows updates to be made based on the gradual growth trend towards the future price.

[0034] To allocate the impact of inflation (I), it is necessary to examine the impacts of inflation in a parallel environment that is temporally equivalent to the project. To this end, the system takes into account the changes in the index price over the time period corresponding to the project. The item used in the inflation index can be, for example, the price of a new apartment, the price of gold, the exchange rate, the Central Bank's inflation index, etc., or a combination of multiple items. Using the changes in the index, the system calculates the daily inflation growth rate and applies it to each Element through the inflation matrix.

[0035] Based on this process and the steps outlined in the next step, the system calculates the inflation for each Element. This way, the updated value of each Element is obtained by applying the impact of inflation. Additionally, the inflation value for the entire investment is calculated.

[0036] To calculate the daily growth rate of inflation, the system utilizes the compound growth formula commonly used in economics, but utilizes compound daily growth rate (CDGR) formula rather than the annual one.CDGR = Compound daily growth rateBeginning value =VbeginVfinai= Final value t = time in days

[0037] Using this formula, as soon as there is a change in the index price, the system calculates the compound daily growth rate for its equivalent period and records it in the database as CDGR1 , CDGR2, ..., CDGRn for the Elements up to the current date.

[0038] The output of this unit is a table that includes dates from the start of the project (initial expenditure) to the current day and the compound daily growth rate. The system stores this table in the database so as to be used in the processing related to the inflation matrix.

[0039] Step 4- Inflation Matrix Processing Unit and Elements Update:

[0040] This unit, which is the main engine of the system, is responsible for automatically updating the values of the Elements generated in the "Expenditure Processing Unit and Element Production" based on the compound daily growth rate produced by the "Inflation Index Processing Unit."

[0041] In this unit, the system retrieves the table of Elements associated with the first step and the table of compound daily growth rate associated with the third step from the database each day to update the values of the Elements. It then creates a Lower Triangular Matrix with a rank of nxn, where n is the number of days in the project from the project initiation date (initial expenditure) to the current day. Then, it places the values of the Elements for updating in chronological order on the main diagonal of the matrix.

[0042] If E1 , E2, , En represent the investment Elements from the project initiation date (initial expenditure) to the current day, then the main diagonal arrays of the matrix are equal to the values of Elements.D11=E1 & D22=E2 & ... & Dnn=En

[0043] To calculate the remaining arrays of the matrix for each column, the value of each Element is multiplied by its corresponding compound daily growth rate received from the "Inflation Index Processing Unit" and is then added to its original value to produce the value for the next day or the lower row of the column. The calculated number serves as the basis for further calculations, and this process continues until reaching the current day. Then, calculations for the next column begin and this way, the numbers at the bottom row of the matrix represent the updated values of the Elements.

[0044] At this point, to compute the rest of the arrays in the first column of the matrix:The first Element with the impact of inflation of one day D21 = E1 + (E1 x CDGR2)The first Element with the impact of inflation of two days D31 = D21 + (D21 x CDGR3)The first Element with the impact of inflation of i days Di , 1 = D(i- 1 ),1 + (D(i- 1 ),1 x CDGRi)The first Element with the impact of inflation of n days Dn,1 = D(n-1 ),1 + (D(n-1 ),1 x CDGRn)

[0045] This process will continue for the subsequent columns of the matrix. Thus, for the j-th column of the matrix:The j-th Element with the impact of inflation of i days Di = D(i- 1 ),j+ ( D (i- 1 ),jx CDGRi)

[0046] The system computes all the matrix arrays up to the n-th column utilizing the above formula. Consequently, the bottom array of each column will represent the updated value of the corresponding Element (E').Dn,1 = E 1 & Dn,2= E 2 & ... & Dn,j= E j & ... & Dn,n= E n

[0047] The system calculates the impacts of inflation on each investment Element by forming the matrix illustrated in Figure 3.

[0048] The output of this unit is a table that includes dates from the start of the project (initial expenditure) to the current day and the updated amounts of the Elements due to inflation. The system updates this table on a daily basis and stores it in the database for further processing in the "Unit of Calculating Elements' Contribution Percentages in the Project".

[0049] Step 5- The Unit of Calculating the Elements' Contribution Percentage in the Project:

[0050] For this purpose, the system retrieves the updated table of the Elements from the database and calculates the contribution percentage of each Element in the project by dividing the updated value of each Element by the total updated value of all Elements in the project., E'i(E j%) the contribution percentage of j-th Element in the project = — x 100 E

[0051] Finally, it stores a table in the database containing the dates of the Elements and their contribution percentage in the project. This table is updated daily for use in "Step 6- Unit of Calculating the Investors' Contribution Percentage in the Project" and for allocating the contribution percentage of Elements to their respective investors who own those Elements.

[0052] Step 6- Unit of Calculating the Investors' Contribution Percentage in the Project:

[0053] The input of this unit is the table of Elements' contribution percentage in the project (output of the fifth step) and the table of investors' contribution percentage in the Elements (output of the second step) is retrieved from the database.

[0054] First, the contribution percentage of each Element in the project is allocated to the owners of each Element. For this purpose, the system multiplies each record from the "Elements' Contribution Percentage in the Project" table by all corresponding records with the previous day's date in the "Investors' Contribution Percentage in Elements" table, which was produced in the second step.

[0055] The result is then recorded alongside the investor's name for the corresponding date in a table where, for each day, the names of all investors and their contribution percentage in the project through the Element of that day are recorded. This table is stored in the database.

[0056] (The system considers the investors' contribution percentages for the previous day in the calculations since the owners of an Element are the investors who had money in the fund the day prior to the Element.)

[0057] Then the system calculates the investor's total contribution percentage in the project by summing up their contribution percentages through various Elements utilizing algebraic sum and it prepares a table in which the names of all investors and their contribution percentage in the project are recorded. After entering this table into the database, it displays it in the output.

[0058] The contribution percentage of investor k in the project through Element j is equal to:= (The contribution percentage of the j-th Element in the project) x (The contribution percentage of the fc-th investor in the j-th Element)= (E j%) x (Fk(j-1 )%)

[0059] By summing up an investor's contribution percentages in the project through various Elements, the investor's contribution percentage in the project is determined.(k%) The contribution percentage of the fc-th investor in the project

[0060] Figure 4 illustrates the distribution of each updated Element from the table of "Elements' contribution percentage in the project" (output of the fifth step) among the owners of those Elements in the table of "investors' contribution percentage in the Elements".

[0061] Considering time is one of the most important parameters for calculating investors' contribution in the project, the calculations related to above steps must be updated on a daily basis.

[0062] In Figure 5, the data flow diagram for calculating the investors' contribution percentage based on the Yourdon and DeMarco model is shown.

[0063] Calculating and distributing priority right among investors. One of the features of the dynamic analysis of Elements system is its ability to allocate priority right to investors. Therefore, when it is agreed upon that an amount of money (such as a portion of project profit) should be allocated as a priority right in investment to investors who entered the project earlier, the system divides this money among investors in a way that allocates a higher percentage of priority right to the owners of Elements that were formed earlier.

[0064] Figure 6 depicts a flowchart of the operation and coordination between various system units, as well as their interactions for calculating the investors' entitlement percentage of the priority right.

[0065] Step 1- Unit of Calculating the Elements' Entitlement Percentage of the Priority Right:

[0066] Since the priority right has a direct relation with the value and age of the Elements, the system in order to distribute the priority right, calculates the product of the value of each Element in its distance to the current day (age of the Element). It then divides the calculated value for each Element by the sum of theoverall calculated values to calculate the Element's entitlement percentage of priority right. For this purpose:• The system first retrieves the table of initial values of the Elements from the database.• Then, considering the current date, the system calculates the age (T) of each Element based on days and inserts it into the next field of the corresponding Element's record.• In the next field of the table, the system inserts the product of the Element's value (E) and the Element's age (T).• The system calculates and stores the total sum of the product of the Elements' values and their ages, denoted as TxE.• In the next field, for each Element, the system calculates (T x E / ^T x £") and records it as the Element's entitlement percentage of the priority right.

[0067] The output of this unit is a table containing the dates of the Elements and the Element's entitlement to the percentage of the priority right, which is then stored in the database.

[0068] Elements' priority right is divided based on the area of surfaces between them, with one side representing the Element value while the other side representing the age of the Element. These surfaces are depicted in Figure 7.

[0069] Step 2- Unit of Calculating the Investors' Entitlement Percentage of the Priority Right:

[0070] The system retrieves the "Elements' Entitlement Percentage of the Priority Right" table generated in previous step and the "Investors' Contribution Percentage in The Elements" table from the database and the system allocates the Elements' entitlement percentage of the priority right to their respective owners based on these tables. For this purpose, the system multiplies each record from the "Elements' Entitlement Percentage of the Priority Right" table with all corresponding records from the "Investors' contribution Percentage in the Elements" table for the previous day's date. It then places the result alongside theinvestor's name for their corresponding date in a table, where for each day, the names of all investors and their entitlement percentage of priority right through the Element of that day are recorded. This table is stored in the database.

[0071] The system calculates each investor's entitlement percentage of the priority right in the entire project by algebraic sum of the entitlement percentages that the investor has due to various Elements. The output of this unit is a table that lists the names of all investors and their entitlement percentage of the priority right. This table is displayed as output after being stored in the database.

[0072] Since time is one of the most important parameters for calculating the investors' entitlement percentage of the priority right in the project, its calculations must be updated daily. In Figure 8, the data flow diagram illustrates the calculation of investors' entitlement percentage of the priority right based on the Yourdon and DeMarco model.

[0073] Calculating the inflation value applied to the project and each investor's capital, as well as the overall profit and loss of the entire project and individually for each investor:

[0074] In this system, since the impacts of inflation are accurately applied point-by- point to each project Element, the outputs include the actual inflation amount for the entire project. This amount equals the sum of all updated Element values minus the total project expenditures.

[0075] In other words, the total inflation applied to the project's Elements represents the total inflation of the project, therefore:

[0076] Step 1- Calculation of the inflation value for each Element and the inflation applied to the entire project:

[0077] The system retrieves the table of initial values of the Elements and also the table of updated values of the Elements due to inflation from the database. It subtracts the initial value of each Element from the updated value of the Element and prepares a table in which the date of each Element and the value of the Element's inflation are recorded. By utilizing the algebraic sum of the values in this table, the inflation applied to the entire project is calculated.

[0078] If (I) represents the inflation for each Element:Inflation of the first Element 11 = E 1 - E1Inflation of the second Element I2 = E 2 - E2Inflation of the n-th Element In = E n - En

[0079] The total inflation allocated to the Elements accurately reflects the overall inflation rate.

[0080] The total inflation of the project I = 11 + I2 + ... + In

[0081] Step 2- Calculation of the inflation value applied to each investor's capital:

[0082] The system retrieves the table of investors' contribution percentages in the Elements from the database. By distributing the inflation value of each Element among its owners, the inflation amount for each investor through that Element is calculated. Therefore, each record from the Element inflation table is multiplied by all corresponding records with the previous day's date in the table of investors' contribution percentages in the Elements. The result is entered next to the investor's name for the corresponding date in a table that records, for each day, the names of all investors and the inflation applied through the Elements of that day.

[0083] By utilizing the algebraic sum of the inflation related to an investor through various Elements, the value of inflation applied to that investor's capital is calculated.

[0084] The system prepares a table that records the names of all investors and the inflation applied to their capital. This table is stored in the database.

[0085] Calculation of the total profit and loss of the project and investors:

[0086] The actual profit or loss of the project equals the final project price minus the sum of all updated Element values due to inflation.

[0087] For this purpose, the system calculates the total sum of updated Elements using the table of updated values of Elements due to inflation. Then it takes the project's final price from input and subtracts the calculated value obtained abovefrom it. The resulting number will be equal to the precise value of profit or loss for the project.

[0088] the total profit / loss of the project = V -S E'

[0089] By multiplying the calculated number by each investor's contribution percentage in the project, the profit or loss for each investor in the project is calculated.

[0090] The impact of inflation of each Element on the final project valuation and the total inflation is depicted in Figure 9.Advantageous Effects of Invention

[0091] The benefits of this system include the following:

[0092] - The possibility of calculating the value of investors' contribution to the project:

[0093] By multiplying the final price of the project by each investor's contribution percentage, the value of investor's contribution in the project is calculated. Consequently, any profit or loss from the project, its subsequent products or derivatives, as well as any debts and responsibilities related to the project, can be distributed among the investors accordingly.

[0094] - The possibility of accurately calculating the inflation impact on investments, as well as the overall profit and loss of the entire project and individually for each investor:

[0095] Since this system calculates each investor's precise contribution in each Element separately, the actual inflation amount and the profit or loss for each investor are also available separately.

[0096] Therefore, if an investor intends to withdraw from the project, they have access to the following information:• The value of investment made on a daily basis• The amount of inflation applied to their capital based on the investment time• Their profit or loss based on the project's daily price

[0097] - The possibility of depositing or withdrawing money for each investor at any time during the project progress:

[0098] If an investor increases or decreases their fund balance, their ratio of contribution in subsequent Elements changes. Therefore, if the balance of their fund increases, they will have a higher contribution percentage in the subsequent expenditures. Also, if an investor needs access to some of their money that is held in the fund and the money has not been spent on the project, they can have access to it. After withdrawal, they will have a smaller balance to be exposed to project expenditures. Thereby the system will reduce their contribution amount in future expenditures (and consequently the overall project).

[0099] - The ability for investors to enter and exit at any time during the project's progress and with any amount of money:

[0100] If a new investor enters the project, they will contribute in subsequent investment Elements by creating a fund balance. Since contribution in the project solely depends on the amount of money the investor has at the end of each day, analytically, this system does not differentiate between owners of investment Elements being either new or existing investors. Therefore, there are no restrictions on who can invest, how much money, and when they can invest in this system. Additionally, if an investor decides not to continue investing, they can withdraw by zeroing out their fund balance, effectively withdrawing from contribution. The system compensates for the reduction of fund balance by increasing other investors' contribution percentage in the next Elements, in return granting them a higher share.

[0101] - Creating an attractive and competitive environment for investment prioritization:

[0102] Given the system's capability to allocate priority right in investments and to accurately allocate the impacts of inflation on investments, the system enhances investors' willingness to invest and fosters a competitive environment.

[0103] - A savings method, suitable for hedging against inflation:

[0104] Accurate allocation of the impacts of inflation and precise calculation of profits and losses in this system, make investors more willing to choose this investmentsystem instead of currency savings or capital goods, and their savings enter the production cycle.

[0105] - The possibility of using the prices of multiple goods in the inflation index to reflect the impacts of inflation:

[0106] For more precise calculation of the impacts of inflation, this system has the ability to simultaneously use the prices of multiple goods in the inflation index and calculate a compound daily growth rate based on the impact of these goods.

[0107] - Transparency and the ability for all investors to monitor expenditures:

[0108] Since the daily recording of money inflows, outflows, and expenditures are inseparable essentials for the system's calculations, publishing information on web pages allows all investors to monitor the progress of the project online. Additionally, each investor, upon receiving a notification of money withdrawal (via SMS, email, etc.), can view details of expenditures, their contribution amount, the new balance, etc. online. Thus, the plan is completely transparent.

[0109] - The ability to generate individual reports for each investor:

[0110] In this system, it is possible to individually calculate and display an output report of all deposits, withdrawals, expenditures, profits and losses, the share of investor's capital from the impacts of inflation, priority right, bank interest, and project manager rights for each investor. Additionally, the system can generate charts of expenditures, display the project's growth function, and updated value of investors' capital based on the final project price, among other features.

[0111] - The possibility of calculating and withdrawing project managers' rights during investment:

[0112] When recording expenditures, a feature can be added to the system to automatically calculate the project managers' rights. Then this amount can be proportionally deducted from the investors' fund balance.

[0113] - Accurate evaluation of a project's value based on inflation indexes:

[0114] Due to its accuracy in applying the impacts of inflation to all investments made during the investment period, this system can play a significant role in the overall evaluation of the project.

[0115] - The possibility of creating a new investment system:

[0116] With coordination and collaboration from the banking network, bank deposit accounts can be used as investors' fund, establishing a new system of deposits that enables contribution in investments.

[0117] - The possibility of calculating profit and loss based on future (predicted) prices of inflation index:

[0118] In a part of the system, it is possible to enter inflation index prices as predictions for future days, allowing updates based on a gradual growth trend until reaching the future or predicted price.

[0119] - The capability to calculate and distribute priority right among investors:

[0120] With the dynamic analysis of Elements method in this system, it is possible to allocate scores based on age and size of the Elements among investors. This way, investors who enter the investment process earlier can benefit from greater advantages.

[0121] - The possibility of benefiting from bank interest on unspent funds:

[0122] In this system, each investor has a separate fund, and all transactions within fund are applied individually to each investor. Therefore, the money remaining in each investor's fund can earn daily bank interest (or as agreed upon). This feature enhances the attractiveness of depositing funds in this system for investors.

[0123] - The possibility of using reassessments in confrontation with new investors or changing the inflation index:

[0124] It is possible to create this capability in the system so that if project managers or investors decide to conduct a general assessment of the project during its execution, due to reasons such as encountering new investors, changing the inflation index, etc., to apply the evaluation effect, the system should deposit each investor's share of the evaluation amount to the investors' fund. This process will liquidate all investments accordingly.

[0125] In other words, the system makes a financial settlement with all the investors present in the project and restarts the project and re-enters everything that is in the project as an expenditure so that the investors contribute to it.

[0126] This action allows investors to decide about their capital in parts of the investment process in the project and involve it in further investment with an amount more or less than the calculated amount by the system.Brief Description of Drawings

[0127] Figure 1 : The flowchart shows the performance and coordination between various units of the system and their connection in order to calculating investors' contribution percentage in the project.

[0128] Figure 2: It illustrates the relation between investors' fund balances and their respective amount of contribution in the next day Element. In this figure:• On the first day, the fund balance of investors A, B, and C are equal, and thus their contribution in the first Element is equal.• On the second day, investor A increases their fund balance, and thus in the second Element, A's share is greater than the others.• On the third day, investor C withdraws their balance from the fund, and a new investor, D, joins the project.

[0129] Figure 3: It illustrates the inflation matrix formed by the system. The input data for the inflation matrix is retrieved from two tables: the Elements table and the compound daily growth rates table. The inflation matrix updates each Element based on the compound daily growth rates.

[0130] Figure 4: It illustrates the distribution of each record from the table of Elements' contribution percentage in the project (output of the fifth step) among its owners in the table of investors' contribution percentage in the Elements (output of the second step). The system multiplies each record from the first table with all corresponding records from the previous day in the second table, and inserts the result alongside the investor's name for its corresponding date in the third table.

[0131] Figure 5: The data flow diagram for calculating the investors' contribution percentage in the project based on the Yourdon and DeMarco model is shown. This diagram fully illustrates the relation between different processing units, system databases, and the data flow direction.

[0132] Figure 6: It depicts a flowchart of the performance and coordination between various system units, as well as their interactions for calculating the investors' entitlement percentage of the priority right in the project.

[0133] Figure 7: It illustrates the surfaces of the triangles which are the basis for receiving priority right. One side of these triangles representing the Element value and the other side representing the age of the Element. As inferred from the image, the areas of these triangles change on a daily basis relative to each other. Therefore calculations must be updated every day.

[0134] Figure 8: The data flow diagram for calculating the investors' entitlement percentage of priority right based on the Yourdon and DeMarco model is illustrated in this figure. In this diagram, the complete relation between different processing units, system databases, and the direction of data flow is fully illustrated.

[0135] Figure 9: It illustrates the impact of inflation of each Element on final project price and the overall inflation. Applying the impact of inflation on all Elements leads to the calculation of the project's total inflation. The project's total inflation plays an important role in its evaluation and in calculating the project's actual profit and loss. The figure represents a scenario where the inflation rate is positive and profit has been recognized in the project.Examples

[0136] This system can be utilized in all projects involving financial contribution, whether they are construction-related or non-construction-related, industrial, cooperative housing companies, investment funds, factories, procurement, assembly, management contracts, etc. By employing this system, the amount of investment and project contribution can be clearly determined and decisions can then be made based on the results derived from it.Industrial Applicability

[0137] The method of calculating contribution percentage in investment with the capability of dynamic analysis of investment Elements is designed to finance projects, facilitate contribution, and address the existing challenges in a way that allows anyone to invest in the project at any time and with any amount of money.

Claims

Claims

1. A method for calculating contribution percentage in investment with the help of a computer system comprising: a) A system such as computer, computer network or other programmable devices capable of processing and storing data; b) The list of deposits made by investors in the project together with their dates; c) The List of the expenditures incurred for the project, together with their dates; d) The list of inflation index prices during the project's progress timeline and their dates;The system takes the information of the above lists from the input and processes them using the dynamic analysis method of investment Elements according to the following steps, and the output records the investor's contribution percentage in the project, which includes the following steps:Step 1, Expenditure Processing Unit and Element Production: a) The system receives the list of expenditures incurred for the project together with their dates from the input; b) Puts the sum of expenditures associated with each day into a unit referred to as the Element of that day; c) Assumes the value of the Element to be zero, on dates when no expenditure has been incurred;The output of this unit is a table that includes the date, from the start of the project to the current day and the values of the Elements and is stored in the database;Step 2, Fund Unit and Calculating the Investors' Contribution Percentage in the Elements: a) The system receives the list of deposits made by investors in the project together with their dates from the input; b) Creates records in the database from the date of the first deposit to the current day for each day, by the number of all investors; c) Calculates and inserts the investor's fund balance and the total fund balance on that date, in each record, alongside each investor's name; d) Calculates and inserts the investor's contribution percentage in the Element of the following day by dividing the investor's fund balance by the total fund balance on that date, in each record;e) Receives the table of Elements generated in the first step from the database, sorts them in chronological order and repeats the following two steps from the first Element to the last Element;1) Multiplies the Element based on its date by the investors' contribution percentage from the previous day, and subtracts the resulting amount from each investor's fund balance on the date of the Element;2) Updates the investor's fund balance, the total fund balance and the investors' contribution percentage on that date and subsequent dates of the table;The output of this unit is a table that includes, for each day, the names of all investors and their contribution percentage in the Element of the following day, and is stored in the database;Step 3, Inflation Index Processing Unit and Compound Daily Growth Rate Calculation:This unit is responsible for generating the Compound Daily Growth Rate from the project initiation date (initial expenditure) to the current day; investors agree on the price of goods or an item of them as the inflation index to update their capital; the daily inflation rate is calculated based on changes in the inflation index price over time; a) The system takes the list of inflation index prices during the project's progress timeline and their dates from the input; b) Based on changes in the inflation index prices over time, it calculates the Compound Daily Growth Rate using the compound growth formula;The output of this unit is a table that includes the date from the start of the project (initial expenditure) to the current day, and the Compound Daily Growth Rate, which is stored in the database;Step 4, Inflation Matrix Processing Unit and Elements Update:This unit updates the generated Elements (output of the first step) based on the Compound Daily Growth Rate (output of step three) as follows; a) The system retrieves the table of generated Elements from step one and the table of Compound Daily Growth Rate from the third step from the database; b) Creates a Lower Triangular Matrix with a rank of nxn, where n is the number of days in the project, meaning from the project initiation date (initial expenditure) to the current day; c) Places the values of the Elements in chronological order on the main diagonal of the matrix;d) To calculate the remaining arrays of the matrix, for each column, the value of the Element is multiplied by its Compound Daily Growth Rate corresponding to the date of Element and is then added to its original value to produce the value for the next day or lower row of the column; e) The calculated number serves as the basis for calculating the lower row in the same column, and this process continues until it reaches the current day; f) Then, calculations for the next column begin, continuing until the last column and this way, the numbers in the bottom row of the matrix represent the updated prices of the Elements;The output of this stage is a table that includes the date, from the start of the project (initial expenditure) to the current day and the updated values of the Elements due to inflation, which is stored in the database;Step 5, The Unit of Calculating the Elements' Contribution Percentage in the Project: a) The system retrieves the updated table of Elements from the fourth step from the database; b) Calculates the total updated value of the Elements by summing the updated values of all the Elements; c) Calculates each Element's contribution percentage in the project by dividing the updated value of that Element by the total updated value of all the Elements;The output of this unit is a table that includes the dates of the Elements and each Element's contribution percentage in the project, which is stored in the database;Step 6, The Unit of Calculating the Investors' Contribution Percentage in the Project: a) The input of this unit is the Elements' contribution percentage in the project table (the fifth step) and the investors' contribution percentage in the Elements (the second step) is retrieved from the database; b) Each Element's contribution percentage in the project is allocated to its owners and for this purpose, the system multiplies each record from the "Elements' contribution percentage in the project" table by all corresponding records with the previous day's date in the "Investors' contribution percentage in the Elements" table and the result is entered alongside the investor's name for the corresponding date in a table that, for each day, the names of all investors and their contribution percentage in the project through the Element of that day is recorded; c) The system calculates an investor's contribution percentage in the entire project by algebraic sum of that investor's contribution percentages through various Elements;The output of this unit is a table in which the names of all investors and their contribution percentages in the project is recorded, which is stored in the database and displayed in the output;Since time is one of the most important parameters in calculating investors' contribution percentage in the project, the calculations related to this claim must be updated daily.

2. The method for calculating and distributing priority right among investors, according to claim 1 , where if it is agreed upon that an amount of money as a priority right in investment should be allocated to the investors who entered the project earlier, the system divides this money among investors in a way that allocates a higher percentage of priority right to the owners of Elements that were formed earlier; this method includes the following steps:Step 1, Unit of Calculating the Elements' Entitlement Percentage of the Priority Right: a) The system first retrieves the table of Elements produced in the first step of the first claim from the database; b) Then, considering the current date, the system calculates the age (T) of each Element based on days and inserts it into the next field of the corresponding Element's record; c) In the next field of the table, the system inserts the product of the Element's value (E) and the Element's age (T); d) The system calculates and stores the total sum of the product of the Elements' values and their ages, denoted as £TxE; e) In the next field, for each Element, the system calculates (T x E / ^T x £") and records it as the Element's entitlement percentage of the priority right;The output of this unit is a table containing the dates of the Elements and the Element's entitlement percentage of the priority right, which is then stored in the database;Step 2, Unit of Calculating the Investors' Entitlement Percentage of the Priority Right: a) The system retrieves the "Elements' entitlement percentage of the priority right" table and the "investors' contribution percentage in the Elements" table generated in the second step of the first claim from the database; b) The system allocates the Elements' entitlement percentage of the priority right to their respective owners and for this purpose, multiplies each record from the " Elements' entitlement percentage of the priority right" table with all corresponding records from the "investors' contribution percentage inthe Elements" table for the previous day's date and then places the result alongside the investor's name for their corresponding date in a table, where for each day, the names of all investors and their entitlement percentage of priority right through the Element of that day are recorded; c) Calculates each investor's entitlement percentage of the priority right in the entire project by algebraic sum of the entitlement percentages that the investor has due to various Elements;A table is prepared that records the names of all investors and their entitlement percentage of the priority right; this table is stored in the database and displayed as output; Since time is one of the most important parameters in calculating investors' entitlement percentage of the priority right in the project, the calculations related to this claim must be updated daily.

3. The method for calculating the inflation value applied to the project and each investor's capital, according to claim one, wherein in step four, the impacts of inflation have been applied to all project Elements, their sum represents the total inflation of the project, therefore;Step 1, Calculation of the inflation value for each Element and the inflation applied to the entire project: a) The system retrieves the table of initial values of the Elements that was produced in the first step of the first claim and also the table of updated values of the Elements due to inflation that was produced in the fourth step of first claim from the database; b) Subtracts the initial value of each Element from the updated value of the Element and prepares a table in which the date of each Element and the value of the Element's inflation are recorded; c) By utilizing the algebraic sum of the values in this table, the inflation applied to the entire project is calculated;Step 2, Calculation of the inflation value applied to each investor's capital: a) The system retrieves the table of Elements' inflation produced in the previous step and the table of investors' contribution percentages in the Elements produced in the second step of the first claim from the database; b) Each record from the Elements' inflation table is multiplied by all corresponding records with the previous day's date in the table of investors' contribution percentages in the Elements and the result is entered next to the investor's name for the corresponding date in a table that records, for each day, the names of all investors and the inflation applied through the Element of that day;c) By algebraic sum of the inflations related to an investor through various Elements, the value of inflation applied to that investor's capital is calculated;A table is prepared and stored in the database that records the names of all investors and the inflation applied to their capital.

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