> For the complete documentation index, see [llms.txt](https://whitepaper.nextearth.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://whitepaper.nextearth.io/chapter-ii/pillars-of-the-metaverse/nxtt/short-term-dynamics.md).
# Short-Term Dynamics
The discounted cash-flow (DCF) approach describes a fair value state at each future time point. It is not a dynamic model, i.e. it does not account for short-term price fluctuations. The NXTT token, as a traded asset, will be subject to market influences. Although DCF is expected to assess the long-term equilibrium, the short-scale behavior will deviate from mean values.
\
Here we present a dynamic approach that gives insight into what can happen in the short run. The short-term model takes the first-year NXTT Economics model (mid or realistic scenario) as input and adds exchange market dynamics to it using a Monte-Carlo simulation.
We assume a standard lognormal stochastic differential equation in the form of:
The drift term and volatilities are calibrated to historic data. This technique allows us to go beyond static modeling and have an idea of what can happen in the short term.
The simulation results underline the observation that crypto is a risky asset class for the time being. Market participants are advised to precede any investment decision with prudent analysis, to implement conscious trading strategies and to observe portfolio management best practices.
---
# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.
## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.
Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:
```
GET https://whitepaper.nextearth.io/chapter-ii/pillars-of-the-metaverse/nxtt/short-term-dynamics.md?ask=&goal=
```
`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.
Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.