AU2018278923A1

AU2018278923A1 - Water exchange trading platform and method of connecting traders to a water exchange

Info

Publication number: AU2018278923A1
Application number: AU2018278923A
Authority: AU
Inventors: Yaacov Shirazi
Original assignee: Aqua Index Ltd
Current assignee: Aqua Index Ltd
Priority date: 2007-08-21
Filing date: 2018-12-12
Publication date: 2019-01-03
Also published as: AU2016203595A1

Abstract

A method and system for computing a stable index value of a regulated substance by computing a virtual value of the substance based on the value of a freely marketed product of the substance. Particularly the invention may be applied to develop a stable investment instrument for investing in fresh water. Also disclosed is a method of connecting traders to a water exchange so as to provide sufficient volatility for trading purposes. cn cr0 'N)4 rN

Description

Water exchange trading platform and method of connecting traders to a water exchange

FIELD AND BACKGROUND OF THE INVENTION [0001] Various methods and systems for investing in commodities are possible, and particularly, methods and systems may determine of a stable index price and permit the use of a commodity as an investment for financiers and permit the holder of the commodity to generate capital to develop the commodity.

[0002] Many investors choose to invest in commodities as a hedge against inflation. In order to make commodities investment more secure, many financiers prefer to invest in an indexed commodity. The index gives a composite representative price based on the price at multiple suppliers. This allows the investor to invest in the commodity without being exposed to local instabilities in the markets.

[0003] Particularly, fresh water, being an essential and irreplaceable commodity that is becoming scarcer, is a very desirable commodity for investment. Furthermore, investment money is also needed for building plants for acquiring, purifying and distributing water. On the other hand, the market for water is strongly affected by local factors and prices vary wildly from place to place. Also temporally, supply and demand for water may vary very wildly due to short-term events. Prices of water in the USA are from 0.16 to 1.35 usd/m3 in Germany 1.80 usd/m3, in Finland 0.50 usd/m3, and 4.00 usd/m3 for desalinated water in Saudi Arabia. Thus in order to invest safely in water an investor needs additional protection.

[0004] In many water rich areas, water is not developed and squandered because although water is a very valuable commodity, water has no market value and cannot currently be sold, exploited or used as security for loans. Therefore water holders (e.g. regional governments or landholders having water resources) often choose to develop industries that provide quick profits even when these industries destroy valuable water resources. If a world water market were developed, water resources would become a valuable asset useful as for guaranteeing loans and this would encourage improved protection of water resources. Furthermore, developing a water market would make it possible for water holders to generate investment

2018278923 12 Dec 2018 capital necessary to develop water resources.

[0005] A major problem in developing an integrated market for water is connected to the highly regulated nature of water as a commodity. The political and economic importance of water limits the potential of trade as a policy tool to mitigate water scarcity. National and local governments use exit fees, fixed taxing and progressive taxing of water on one hand, and subsidization of water on the other hand to protect local water supplies or encourage water intensive industries (like agriculture). Having a wide range of prices (e.g. 0.16-4.00 usd/m3) and exit fees (e.g. 0-70% in different provinces in Australia), and tax rates (e.g. 1050% progressive tax and 30% subsidization for agriculture in Israel), no one has been able to build a stable international market for water.

[0006] This has created a situation in which, although fresh water is recognized as a commodity by the European Court and although fresh water is an essential commodity with limited supply and increasing demand (and thus a desirable investment [for example see the article “Inventing Water's Future” published by Forbs.com 6/19/08 by William Pentland]), and although there is a great need for investment capital to develop water resources [for example see World Water Council, World Water Forum Task Force on Financing Water for All, Report 1, by Paul Van Hofwegen, 2006] no one has been able to build a stable investment instrument for water. There is no integrated world market for water as there is for publicly traded commodities like wheat, com, oil or gold. There is no investment instmment based on water price (S & P using 50 companies value). There is no public trading of a water index or water futures or water as a commodity on any major stock exchange.

[0007] There is thus a widely recognized need for, and it would be highly advantageous to have an investment instmment for water that is based on a stable free market price.

SUMMARY OF THE INVENTION [0008] Various methods and systems are possible for providing an investment instmment and method for a investing. Particularly, a system or method may facilitate investment in a substance by determining a free market price of the substance based on a virtual value of the

2018278923 12 Dec 2018 substance as the value is reflected in the price of a freely traded product.

[0009] An embodiment of an instrument for stable investment (a financial instrument may include for example a bond, a certificate, a futures, a stock, a basket) in a commodity may include a collateral having a valuable substance. The instrument may further include a virtual value of the substance calculated according to an influence of a price of the substance on the price of the product.

[0010] In an embodiment of an investment instrument the valuable substance may be regulated such that a price of the substance in trading is strongly affected by non-market factors (such as government subsidies, unusual taxes [e.g. excise taxes, fixed taxes, progressive taxes and export fees] or controls) while the product from which the virtual value is calculated may be a publicly traded commodity with a free market price.

[0011] In an embodiment of an investment instrument the substance of value in the collateral may be fresh water.

[0012] In an embodiment of an investment instrument the virtual value is calculated from one or more of an agricultural commodity, a manufactured commodity and a fuel (for example a biofuel).

[0013] In an embodiment of an investment instrument the virtual value of the substance may further depend on one or more of the following factors: the quantity of the substance in the product, the quantity of the substance utilized to produce the product, and the quantity of an output produced from the product (for example the quantity of energy output from combusting the product, a quantity of the substance produced as a byproduct of utilizing the product).

[0014] In an embodiment of an investment instrument the virtual value may further on a market weight of the product.

[0015] An embodiment of a method of investing may include calculating an index value of a substance. The index value may be at least partially dependent on a virtual value of the substance. The virtual value may be computed based on the influence of the value of the substance on the price of a product of the substance.

2018278923 12 Dec 2018 [0016] An embodiment of a method of investing may further include acquiring a right to a collateral containing the substance according to the index value of the substance.

[0017] In an embodiment of a method of investing, trade may be regulated in the substance for which the index price is calculated whereas the product from which the virtual price is calculated may be a publicly traded commodity.

[0018] In an embodiment of a method of investing, the substance for which an index price is calculated may be fresh water.

[0019] In an embodiment of a method of investing, the product from which the virtual price is calculated may be one or more of the following an agricultural commodity, a manufactured commodity, and a fuel.

[0020] In an embodiment of a method of investing, calculating the index value may employ one or more of evaluating a quantity of the substance contained in the product, evaluating a quantity of the substance utilized to produce the product and evaluating a quantity of an output from the product. In some versions, evaluating is physically measuring.

[0021] An embodiment of a method of trading a collateral may include determining a market value of the collateral based on an index value of a substance of the collateral. The index value may be calculated using a formula that is at least partially dependent on a virtual value of the substance in a product.

[0022] An embodiment of a method of trading a collateral may further include marketing a right to the collateral according to the market value of the collateral.

[0023] In an embodiment of a method of trading a collateral, trade in the substance of the collateral may be regulated whereas the product used for calculation of the virtual value may be a publicly traded commodity.

[0024] In an embodiment of a method of trading a collateral, the substance of the collateral may be fresh water.

[0025] In an embodiment of a method of trading a collateral, the product may include one or more of an agricultural commodity, a manufactured commodity, and a fuel.

2018278923 12 Dec 2018 [0026] In an embodiment of a method of trading a collateral, the virtual value may further depend one or more of a quantity of the substance in the product, a quantity of the substance utilized to produce the product, and a quantity of an output from the product.

[0027] An embodiment of a system to manage an investment may include a memory configured to store a virtual value of a substance, and a processor. The processor may be configured for computing the virtual value of the substance in at least one product, and calculating an index value of the collateral. The index value of the substance may be partially dependent on the virtual value of the substance.

[0028] In an embodiment of a system to manage an investment the substance may be a regulated commodity and the product may be a freely traded commodity.

[0029] In an embodiment of a system to manage an investment the substance may be fresh water.

[0030] In an embodiment of a system to manage an investment the product may include one or more of an agricultural commodity, a manufactured commodity, and a fuel.

[0031] In an embodiment of a system to manage an investment the memory may be further configured to store one or more of the quantity of the substance in the product, the quantity of the substance utilized to produce the product, and the quantity an output from the product.

[0032] In certain embodiments, the invention is a computer-implemented method of connecting traders to a water exchange by injecting a level of volatility in a water index on the water exchange so that the traders finds trading of water on the water exchange to be attractive (like other commodities) while at the same time maintaining a level of stability in the water index. This is accomplished by using technical factors (acquired using sensor(s) and using data feeds) that define the physical relationship between water and the water production of and/or water constitution in the other commodities and effectively transferring the volatility of other traded commodity or commodities into the water index using a varying parameter. Instead of being highly regulated, the water index displayed to the traders is volatile like a commodity with a free market price.

2018278923 12 Dec 2018 [0033] Similarly, in certain embodiments, the invention is a water exchange trading platform configured for injecting a level of volatility in a water index on the water exchange so that the traders finds trading of water on the water exchange to be attractive (like other commodities) while at the same time maintaining a level of stability in the water index. This is accomplished by using the aforementioned technical factors (acquired using sensor(s) and using data feeds) that define the physical relationship between water and the water production of and/or water constitution in the other commodities and effectively transferring the volatility of other traded commodity or commodities into the water index using a varying parameter. Again, instead of being highly regulated, the water index displayed to the traders by the water exchange trading platform is volatile like a commodity with a free market price.

TERMINOLOGY [0034] The following terms are used in this application in accordance with their plain meanings, which are understood to be known to those of skill in the pertinent art(s). However, for the sake of further clarification in view of the subject matter of this application, the following explanations, elaborations and exemplifications are given as to how these terms may be used or applied herein. It is to be understood that the below explanations, elaborations and exemplifications are to be taken as exemplary or representative and are not to be taken as exclusive or limiting. Rather, the terms discussed below are to be construed as broadly as possible, consistent with their ordinary meanings and the below discussion.

o Acquiring a right to a collateral means receiving entitlement to derive a benefit from the collateral.

o Marketing a right to a collateral means conveying entitlement to benefit from the collateral in return for some payment or benefit.

o A product of a substance is an item or material, associated with the utilization of the substance (for example the substance may be utilized in production of the product or in order to bring the item to market). (As a result, the cost of the product may be influenced by the cost of the substance. A substance may also be considered a product

2018278923 12 Dec 2018 of itself).

o The substance of a collateral is something of general value that can be derived from the collateral.

o A virtual value of a substance is a value of the substance obtained by calculating the influence of the value of the substance on the cost of a product of the substance or the influence of the cost of the substance on the cost of a product that is a substitute for a commodity.

2018278923 12 Dec 2018

BRIEF DESCRIPTION OF THE DRAWINGS [0035] Various embodiments of a method and system for investment are herein described, by way of example only, with reference to the accompanying drawings, where:

[0036] FIG. 1 is an illustration of an embodiment of an investment instrument;

[0037] FIG. 2 is a generalized flowchart of a method of marketing a commodity;

[0038] FIG. 3 is an illustration of a computation of a price index;

[0039] FIG. 4 is a generalized flowchart of a method of investing; and [0040] FIG. 5 is a computer system in accordance with one embodiment of the present invention.

DESCRIPTION OF THE PREFERRED EMBODIMENTS [0041] The principles and operation of a method and system for investment according to various embodiments may be better understood with reference to the drawings and the accompanying description.

[0042] Referring now to the drawings, Figure 1 is an illustration of a financial instrument for investing in fresh water. Collateral 101 is a large body of fresh water owned by a municipality 102 (for example municipality 102 may be the state of Michigan and collateral 101a lake). The substance of value in collateral 101 is fresh water. It will be understood to one skilled in the art, that although the water in collateral 101 has significant value and is easily available, nevertheless municipality 102 cannot be sell outright the water in collateral 101 due to legal limitations and limitations to pumping rates and the like. Nevertheless, Municipality 102 needs revenue and capital for development projects (including projects to protect or promote use of collateral 101 for example sewage treatment plants or building a marina or building a pumping station). Therefore municipality 102 markets water rights via a broker 120 and receives a commission as well as credits that can be used as security for loans.

2018278923 12 Dec 2018 [0043] The value of water in collateral 101 is difficult to evaluate because water trade is regulated by government legislation, licensing, official monopolies, taxes and subsidies. Therefore water is not freely marketable and has no consistent price. Therefore, broker 120 employs a standardized index 130, which is used to compute an index value 104 of water (for example $1.07/m3 as illustrated in the figure). In order to compute such a value broker 120 bases computations on the value of water in various localities as well as the virtual value of water in freely marketable products that contain water or utilize water in their production (examples are described herein below). Index values are stored in a memory of a desktop computer and calculated by the processor of the computer. Data for determining market shares and prices of products comes for statistics available over the Internet (for example statistics may be acquired from web sites associated with commodities markets, futures markets, stock exchanges [for example at N.Y., London, Tokyo]) and therefore can be updated easily in real time. Alternatively, statistics may be updated from periodically from published statistics or from statistics released from a government agency.

[0044] Broker 120 issues a certificate 106 (alternatively another financial instrument can be used for example a bond, a share, a stock, a future) for the water of collateral 101 and sells certificates 106 according to index value 104. In the example of Figure 1, since index value 104 is $1.07/m3 the broker 120 sells certificate 106 for 1000 m3 for $1070 plus a 2% commission. An Investor 108 (who bought certificate 106) may redeem certificate 106 by requesting that municipality 102 deliver 1000 m3 of water to investor 108 (investor 108 being responsible for transportation and handling cost), or investor 108 may hold onto certificate 106 assuming that index value 104 will rise and then investor 108 will sell certificate 106 to another investor (possibly via broker 120) and collect a profit (minus any brokerage charges).

[0045] Figure 2 is a generalized flow chart of a method marketing a commodity. A broker searches for a resource that is under capitalized. For example there is a large quantity of fresh water available in the world and a need for the water but not enough capital to develop or even protect this resource. Therefore the broker chooses (block 211) to market fresh water. The broker must now locate (box 213) fresh water rights that can be acquired as collateral. In the example of Figure 2 the broker finds that in Brazil there are a lot of natural lakes having large quantities of accessible water. Then it is necessary to define (box 215) a region of evaluation. For example it is possible to evaluate the water according to the value of water in ίο

2018278923 12 Dec 2018

Mexico and the Midwest United States (where there is a water shortage and water from the Amazon can easily be shipped) alternatively it is possible to evaluate the water according to the world price of water. The broker chooses to index fresh water according to the international value (worldwide) of water. Particularly, first the broker establishes (block 217) the main products of water in the world market and resolves (block 219) the weights for each product and ascertains (block 220) the price of each product and computes (box 221) the value of substance according to each product and calculates (box 222) an index value of the substance based on the compound price of the various products each weighted by its weight factor. An example of establishing (box 217) products resolving weights (box 219), ascertaining prices (box 220) computing a values (box 221) and calculating an index value (box 222) is illustrated hereinbelow in Figure 3 and the accompanying description.

[0046] The broker then divides (box 223) the collateral into portions (for example a share which may be 1000 m3 of water, the collateral may be marketed using a share or another financial instrument as known in the art) and determines (box 225) a market value of each share according to the index value and the condition of the collateral (for example the price of the share may take into consideration the quality of the water in the lake or the location and accessibility of the water). For example if the index value is 1.07 usd/m3 and a share of the lake contains 1000 m3 then the market value of share may be 1070 usd. The broker then acquires (box 227) rights to market the collateral. For example the broker acquires (box 227) rights to the collateral by setting up a futures contract or supply contract with the municipality that owns a lake. Then the broker sells (box 229) shares to the collateral to an investor at the market value plus a commission.

[0047] The index value is sometimes updated. Particularly, periodically the algorithm checks (box 235) if it is time to update the state of the collateral (for example this may be done yearly or monthly or whenever there is a need to expand or adjust the index) if “yes” then a professional appraiser appraises (box 236) the collateral for the quantity, quality (for example, against water quality standards by measuring at least one substance in the water, for example using water quality appraisal instruments, including by measuring the salinity of the water and other chemical and physical concentrations) and availability of the water and the value of the collateral is adjusted (box 237) and then any new collateral necessary is located (box 213) the share certificates are adjusted (box 239) to make sure that each certificate is

2018278923 12 Dec 2018 covered by valid assets and if necessary new collateral is located (box 213). If it is not time to adjust the collateral, (“no” in box 235) then the algorithm checks (box 233) if the time has comes to update the weights (Wx and Wxi [e.g. see Figure 3 lines 362 and 363a-f respectively]) (for example this may be done monthly or even daily). If “yes” then the weights are resolved (box 219) according to periodic reports of international trade organization of the quantity of trade of various goods in the world. If “no” then the algorithm checks (box 231) if the time has come to update product prices (e.g. see Figure 3 lines 364af). If “yes” then the price of a product is ascertained (box 220). The price of a product may be updated, daily, hourly or in real time according to commodity prices available on the Internet or from other source. If “no” then trading continues (for example selling 229 rights to the collateral).

[0048] Figure 3 shows the results of example calculations of the weights of products and values of a commodity. In the example of Figure 3, eight products (water products) are chosen 211. For each water product (A, Q, U, Η, I, Ε, T, and B: Export, Domestic, Desalinate, Bottled, purify, Food Crops and Biofuel) the product weights Wx (line 362) are the portion of the water market represented by that product. Then for each product one or more representative cases are chosen. For each representative case a case weight Wxi (lines 363a-f) is resolved and a case value xi (lines 364a-f) is ascertained respectively.

[0049] In the example of Figure 3, the broker resolves 219 by looking up trade data that in the chosen region 5% of the water trade is for export (Wa=0.05) and 50% goes to domestic consumption (Wq=0.5) and 9.95% comes from desalinization (Wu=0.0995), 0.05% is bottled (Wh=0.0005), 5% is purified (Wi=0.05), 20% is included as virtual water in food crops (Wt=0.2) and 10% is included as virtual water for production of biofuels Wb=0.1. Thus, in the example, the index price of water 369 is partially (Wt+Wb=30%) dependent on a virtual price of water.

[0050] Alternatively, the calculations for the index value could also include virtual water used in manufactured products such as paper (where water is used to suspend the wood colloids and in cleaning and finishing processes).

[0051] Concerning the agricultural portion, water is utilized in production of agricultural

2018278923 12 Dec 2018 commodities such as orange juice corn etc. Nevertheless, it would be difficult to include irrigation water in the index calculations because 1) much irrigation water is taken directly from natural sources (private wells/rivers/rain) and never accounted for 2) irrigation water is highly regulated and subsidized. Virtual water refers to the volume of water utilized for a product but not actually part of the product. Between 700 - 3500 liters of crop water are utilized to produce one kilo of cereal. Therefore, buying agricultural commodities essentially includes purchasing water. By including the virtual price of water in agricultural commodities the broker determines a price for water that is dependent upon market forces where there is little government involvement influencing the price. This enables the broker to build a stable market based index value 369 for water.

[0052] A global market weight factor W is resolved 219 for each product. More specifically in the example of Figure 3, the global market weight factors Wa, Wq, Wu, Wh, Wi, Wt, and Wb (line 262) (in the example of Figure 3 the market weights are the market portion of Export, Domestic, Desalinate, Bottled, purify, Food Crops, and Biofuels Respectively) are computed based on a fixed algorithm using available statistics.

[0053] Note that in the embodiment of Figure 3 Wtl, Wt2, Wt3, (line 263e) (the case weights of virtual water in each food crop) are based on the quantity of water physically contained (the quantity of water constituent in the product) in the commodity and not on the quantity of water utilized to produce the commodity. Thus for example a certain market includes in trade of food crops containing 1300 m3 of water. In that trade there are 500,000 Kg wheat (wheat is 60% water and the density of water is 1000Kg/m3, thus 500,000 Kg wheat contains 500*0.6=300m3 of water). Then Wt3 = (500*.6)/1300 = 0.23. Similarly the total water market (the sum of the water traded in all of the chosen water products) is 6500 m3 and the total water contained in traded food crops is 1300 m3. Thus the market weight of virtual water of agriculture in the index value of water is the portion of the total water market contained in food crops Wt = 1300/6500 = 0.2 [0054] In the example of Figure 3 the virtual value 365a of water in food crops is computed as follows:

[0055] The commodity corn price in N.Y. is 400 usd/ton; com contains 75% water and

2018278923 12 Dec 2018 utilizes 1500 m3 irrigation water/tontl = 400*0.75/1500 = 0.2 usd/m3 is the virtual value of water in corn.

[0056] The commodity coffee price in N.Y. is 950 usd/ton, and coffee is 55% water and utilizes 3500 m3 irrigation water/ton. Thus t2 = 950*0.55/3500 = 0.15 usd/m3 is the virtual value of water in coffee.

the commodity wheat price in N.Y. is 500 usd/ton; wheat contains 60% water and utilizes 1000 m3 irrigation water per tont3 = 500*0.6/1000 = 0.3 usd/m3 is the virtual value of water in wheat.

[0057] Taking into consideration each commodity case weights (line 363e) from the total traded agricultural commodities will give us the virtual value for water in food crops, which is the T price T = Wtl*tl + Wt2*t2 + Wt3*t3 = 0.27*$0.2 + 0.5*$0.15 + 0.23*$0.3 = 0.20 usd/m3 365a. Thus the virtual price of water in agricultural food products T is dependent on the market weight of each agricultural food product, the market price of the agricultural food product and on the quantity of water utilized in production.

[0058] By including the virtual value of water in the index formula the broker computes a representative integrated value of water including the unregulated trade of water in other commodities (products).

[0059] Also in the example of Figure 3, for the product desalinated water U, it is found that in the chosen evaluation region (the world water trade) 647 m3 which is 9.95% of the total water trade is desalinated water. 20% of the worlds desalinated water is used by industrial cities Wul=0.20 and the chosen representative case is Perth Australia which produces desalinated water at a cost of ul=0.80 usd/m2. 50% of desalinated water use in the world is in vacation areas and islands Wu2 = 0.50 and the chosen representative case is Bermuda, which produces desalinated water at a price of u2=1.50 usd/m3. 30% of desalinated water use in the world is in oil exporting countries Wu3 = 0.30 and the chosen representative case is Saudi Arabia, which produces desalinated water at a price of u3=4.00 usd/m3. The weights are updated monthly while the representative prices are updated weekly. Thus the

2018278923 12 Dec 2018 value for desalinated water U = Wul*ul + Wu2*u2 + Wu3*u3 = 0.2*$0.80 + 0.5*$1.50 + 0.3*$4.00 = 2.11 usd/m3 368.

[0060] Virtual water included in bio-fuels is another part of the water trade. In the example of Figure 3, the combined market weight of three bio-fuels is 10% of the total world trade of water Wb=0.1.

[0061] Many fuels like bio-diesel (produced from waste oils or oily plants and particularly algae), biomethane (produced by anaerobic digestion of organic waste) and ethanol (produced from fermentation of cellulous waste or grain) contain no appreciable water. Therefore the water content of the fuel is not used to compute the weight factor Wb. Two examples of alternative bases of Wb are the total mass/volume of the biofuel or the quantity of water output from combustion of the bio-fuel. For liquid fuels (like bio-diesel and ethanol) the total volume or mass of the bio-fuels can used to compute the weight factor Wb. Alternatively for any bio-fuel and particularly for a gas (for example methane) where the volume and weight are not comparable to the water content or total volume of a liquid fuel, the mass of water output in combustion products may be used to compute Wb (alternatively for biofuel Wb could be based on the energy output by combustion of the fuel or some other combustion product or constituent [e.g. carbon] of the fuel multiplied by a proportionality factor). Thus the total market of bio-fuels includes 650 m3, which is treated as 10% of the total water trade 6500 m3. The volume of ethanol sold is 390 m3 (Wb 1=390/650=0.6) and the volume of biodiesel sold is 260 m3 (Wb2=195/650=0.3). In the example of Figure 3 the quantity of the water market in biomethane (on which is based the weight factor Wb3) is calculated based on the output of combustion of the methane. Use of combustion outputs to compute Wb can facilitate comparison between various biofuels that may have very different densities (alternatively energy production or carbon constituent other bases of comparison may be used). Particularly, in the example of Figure 3 the market includes a trade of 38800 m3 of bio-methane. Methane has a density of 0.67 Kg/m3 at room temperature and burning 1 Kg of biomethane produces approximately 2.5 Kg of water. Therefore burning 38800 m3 of methane produces 38800*0.67*2.5/1000 = 65 m3 water. Thus Wb3=65/650=0.1.

[0062] The virtual price of water in biofuel is based on the water input to production of the fuel. To produce 1 ton of ethanol from com utilizes 3600 m3 of water and the price of

2018278923 12 Dec 2018 ethanol is 800$/ton and thus the virtual value of water in ethanol is bl=$800/3600=0.22 usd/m3. Similar calculations for biodiesel (where water is necessary for upkeep of algal ponds) give a virtual water value of b2=0.15 usd/m3 water. In the example of Figure 3 the virtual value of water in biomethane is based on the quantity of water utilized in production. The cost of methane is 3.00 usd/m3 and producing a m3 of biomethane utilizes 7.0 m3 of water (to keep the digester running) thus the virtual value of water in the bio-methane is b3 = 3.0/7.0 = 0.43 usd/m3. Thus the combined virtual value of water in biofuel B is dependent on the market weight of each product (the total mass of the fuel or the water output in combustion of the fuel) and the quantity of water utilized in production of the fuel B= Wbl*bl + Wb2*b2 + Wb3*b3 = 0.6*$0.22 + 0.3*$0.15 + 0.1*$0.43 = 0.22 usd/m3 365b.

[0063] Alternatively the CO2 output from combusting the biofuel or the quantity of the carbon constituent in the biofuel could be used as a common basis of computing the weight factor of all the biofuels.

[0064] Once each product weight and the value of water in each product and class of products is computed the prices are multiplied by the respective weights giving a combined value. In the example of Figure 3 the sum of Wa*A + Wq*Q + Wu*U + Wh*H + Wi*I + Wt*T + Wb*B = 0.05*0.92 + 0.5*0.77 + 0.0995*2.11 + 0.0005*200 + 0.05*1.75 + 0.2*0.198 + 0.1*0.22 = 0.89 usd/m3 366. This price is adjusted by adding a transport cost N=0.01 usd/m3 (for example the average cost of shipping water from the water source to the distributor) and an exit fee cost D=0.03 usd/m3 (for example the average exit fee paid by water importers for taking water from other municipalities) and E=-0.015 usd/m3 the recycle rate (taking account of the fact that some waste water re-enters the distribution system [by percolating into groundwater/ running off into rivers/ or via engineered water reuse]) giving an adjusted price of 0.91 usd/m3 367. Finally the final price is found by multiplying the adjusted price by a supply and demand factor Z=1.12 (when there are a lot of sellers of water certificates and few buyers the price is adjusted up and vice versa when the sellers outnumber the buyers) and a waste factor (1.05) which takes into account the increase of price to the consumer due to the loss of water between the source and the consumer. Thus the index value of water in the example of Figure 3 is 1.07 usd/m3 369.

[0065] Using index value 369 of Figure 3 (described above) companies get securities or

2018278923 12 Dec 2018 purchase of water contracts for the value of the water at the index value. A company distributes contracts in the form of water basket stocks based on the water index value. A company can enter into agreements with finance institutions or investments houses distributing water basket stocks for their clients and getting agreeable commissions and securities from the trading.

[0066] Alternatively a virtual value of a substance can also be computed based on a cost of a commodity for which there exists a product of the substance that is a substitute for the commodity. For example, it is possible to compute a virtual price for water from the price of gasoline. Since ethanol is a substitute for gasoline and since a major part of the cost of ethanol production is water, then it is possible to compute a virtual price of water based on the price of gasoline. For example since the price of gasoline is $700/ton and ethanol is a substitute for gasoline and since one can produce 1 ton of ethanol from corn which utilizes 3600 m3 of water to grow, then the virtual value of water based on the price of gasoline is $700/3600=13=0.19 usd/m3.

[0067] Figure 4 is a flowchart illustrating a method of investing. An investor first chooses (box 470) a commodity (for example fresh water) in which to invest and then finds (box 472) a broker who is selling shares or other financial instrument (for example a bond, a certificate, a futures, a stock, a basket) in the commodity. Then the investor uses an index value to the commodity calculated (box 474) by the broker (for example index value 369 as described in Figure 3 and the accompanying description). According to the calculated index value, the investor decides (box 476) whether to invest. If “yes” then the investor buys (box 478) shares from the broker. If “no” then the investor chooses (box 470) another commodity in which to invest.

[0068] According to one embodiment of the present invention shown in Figure 5, a system 900 for the present invention includes a computer system 850 (Figure 5) having one or more computers that include one or more processors 910, 911, 912, memory 913 and software 914. The one or more computers receive a data feed in real time of prices of freely traded products other than water along with the amount of water used in production of each of these products and the amount of water constituent in each of these products. The computer also receives a data feed of the value of water in a chosen locale or region of

2018278923 12 Dec 2018 evaluation. The computer stores the constantly fed data in a database in its memory and updates the information when updates are available. The computers may also have data fed of the amount of water, the quality and quantity of a particular amount of water, the accessibility of the particular amount of water and in some cases data concerning financial instruments and water used as collateral for the financial instruments.

[0069] In one embodiment, after choosing a locale or region of evaluation, water is evaluated according to the value of the water in the chosen locale or region of evaluation. In one particular example, a price of the water in the reference locality of Mexico is used. The water index is then based on the value of water in the reference locality, i.e. Mexico, and on the virtual value of water in one or a weighted combination of particular freely marketable products (other than water) such as agricultural products or industrial products, for example com, wheat, coffee, oil, etc. In one example of this, the water index is based on the virtual value of water in one or a weighted combination of freely marketed products and adjusted, for example adjusted based on the value of water in the particular locale or in a region or in the whole world. In one version the water index is based on the virtual value of water in one or a weighted combination of freely marketed products and adjusted by the value of water in the particular locale, region or world at a particular time, which may be the initial time of the determinations of the water index.

[0070] In one particular example, since the virtual value of water in the freely traded products is based on a combination of the price of the freely traded product(s) and on one or more of the amount of water utilized in production of the freely traded product(s) and the amount of water constituent in the freely traded product(s), as the virtual value of water in the freely traded product(s) changes the water index changes.

[0071] In another embodiment, the water index is initially set for reference purposes based on the value of water in a chosen locale (for example Mexico) at one particular time and then adjusted based on changes in the virtual value of water. The virtual value of the water is determined from the combination of the price of the freely traded product(s) at a given time, the amount of water utilized in production of the freely traded product(s) at the particular time and the amount of water constituent in the freely traded product(s) at the particular time. In another version of this embodiment, the virtual value of water is determined from the

2018278923 12 Dec 2018 combination of the price of the freely traded product(s) at a given time and at least one of: (i) the amount of water utilized in production of the freely traded product(s) at the particular time and (ii) the amount of water constituent in the freely traded product(s) at the particular time. In still another example, the virtual value of water is determined from the combination of the price of the freely traded product(s) at a given time and the amount of water utilized in production of the freely traded product(s) at the particular time. In yet another example, the virtual value of the water is based on the combination of the price of the freely traded product(s) at a given time and the amount of water constituent in the freely traded product(s) at the particular time.

[0072] Figure 2 also shows sensors 241, 242, 243, 244 for any of the embodiments herein and that are configured to sense physical conditions of either water used as collateral or physical conditions of one or more traded products other than water (i.e. the amount of water constituent in a traded product, the amount of water used in production of the traded product, the amount of water output from a process applied to the traded product, etc.). For example, one or more of the sensors are configured to sense a quality of water in a specific location used as a water source or as a collateral water quality reference. In one non-limiting example, one sensor 241 senses an amount of water constituent in a first traded product and another sensor 242 senses an amount of water utilized in production of the first traded product. One sensor 243 senses an amount of water constituent in a second traded product and another sensor 244 senses an amount of water utilized in production of the second traded product. Sensor data may be updated. A sensor may sense an amount of water output from a process, such as combustion, applied to a traded product. The sensors have feeds for constantly feeding data or updates or adjustments in any of the conditions sensed to the one or more processors.

[0073] All hardware and software necessary to implement the systems and methods of the embodiments of the present invention are understood to be included herein. For example, an analog to digital converter ADC may be positioned at some point between one or more sensors and the computer processors of the computer system 850. Figure 5 also shows a network interface and input/output devices.

[0074] Also shown in Figure 5 is a memory device comprising one or more of a hard

2018278923 12 Dec 2018 drive, RAM memory or other memory device is a non-transitory computer-readable medium that stores software executable by one or more computers. The execution of the software by the one or more computers performs steps that include accessing the database in the one or more computers. The database includes the value of water in a chosen locale or region of evaluation - in our example Mexico - and it also includes prices for one or more freely traded products other than water such as agricultural products, industrial products and at least one of (i) the amount of water used to produce that particular traded product and (ii) the amount of water physically constituent in that particular traded product. The execution of the software by one or more processors of the one or more computers also calculates, for example repetitively, and determines at frequent intervals a first index value of water based on a particular traded product and a second water index value based on a second particular product traded product. In some cases the repetitive calculating and determining by the one or more processors of the first water index is based on adjustments in a constantly received varying condition Pl (for example price) of the first particular one or more traded products and any adjustments in (i) the quantity of water utilized to produce the quantity of the first particular water product and (ii) the quantity of water constituent in the quantity of the first particular water product. The repetitive calculating and determining by the one or more processors of the second water index is likewise based on corresponding adjustments in the constantly received varying condition P2 (for example price) of the second particular one or more traded products and any adjustments in (i) the quantity of water utilized to produce the quantity of the second particular traded product and (ii) the quantity of water constituent in the quantity of the second particular traded product. The repetitive calculating and determining by the one or more processors of a third or further water index is likewise based on corresponding adjustments in the constantly received varying condition P2 (for example price) of the third (or further) particular one or more traded products and any adjustments in (i) the quantity of water utilized to produce the quantity of the third (or further) particular traded product and (ii) the quantity of water constituent in the quantity of the third (or further) particular traded product. Each of the water indices may also be based on different reference values of water in different geographic locations or regions.

[0075] The execution of the software by the one or more processors also initiates constant signals to a digital display devices Dl through D5 to display, on at least one portion of the

2018278923 12 Dec 2018 digital display device, a constantly varying index value for water based on a particular one or more traded products and an updated determination by the one or more processors of one or more index values derived from these particular traded products.

[0076] One embodiment of the system of the invention is water exchange trading platform, comprising one or more processors configured to access a memory storage; one or more display devices; at least one of a first water proportion sensor configured to sense a quantity of water constituent in a first substance and a first water production sensor configured to sense a quantity of water used in production of the first substance; a first data feed connected to at least one of the first water proportion sensor and the first water production sensor and configured to feed a varying parameter of the first substance and to feed an output of the at least one of the first water proportion sensor and the first water production sensor; a second water proportion sensor configured to sense a quantity of water constituent in the second substance and a second water production sensor configured to sense a quantity of water used in production of the second sensor; a second data feed connected to at least one of the second water proportion sensor and the second water production sensor and configured to feed a varying parameter of the second substance and to feed an output of the at least one of the second water proportion sensor and the second water production sensor; one or more network interfaces coupled with the one or more processors; wherein the one or more processors are configured to detect differences over time in the first data feed concerning at least one of (i) the varying parameter of the first substance and (ii) at least one of the output of the first water proportion sensor and the output of the first water production sensor, wherein the one or more processors are configured to detect differences over time in the second data feed concerning at least one of (i) the varying parameter of the second substance and (ii) at least one of the output of the second water proportion sensor and the output of the second water production sensor, an application executable by the one or more processors, and configured to determine a first water index based on a mathematical combination of a varying parameter of the first substance, the at least one of the output of the first water proportion sensor and the output of the first water production sensor, such that increases in the varying parameter of the first substance and increases in outputs of the first water proportion sensor (if such sensor is used) increase the first water index value, decreases in the varying parameter of the first substance and decreases in outputs of the first water proportion sensor

2018278923 12 Dec 2018 (if such sensor is used) decrease the first water index value, whereas increases in the output of the first water production sensor decrease the first water index value and decreases in the output of the first water production sensor increase the first water index value, the application configured to determine a second water index based on a mathematical combination of a varying parameter of the second substance, the at least one of the output of the second water proportion sensor and the output of the second water production sensor, such that increases in the varying parameter of the second substance and increases in outputs of the second water proportion sensor (if such sensor is used) increase the second water index value, decreases in the varying parameter of the second substance and decreases in outputs of the second water proportion sensor (if such sensor is used) decrease the second water index value, whereas increases in the output of the second water production sensor decrease the second water index value and decreases in the output of the second water production sensor increase the second water index value, wherein the one or more processors are configured to determine and repeatedly update the first and second water index and to initiate signals to each of the one or more display devices to display an updated first and second water index whenever the one or more processors detect the differences over time in the first or second data feeds.

[0077] In the above system, references to increases or decreases in outputs of the first or second water proportion sensor (or the first or second water production sensor) affecting the water index in a certain direction apply only when such sensor is used. It is not intended to imply that such sensor is necessarily being used (since such system refers to at least one of a (first or second) water proportion sensor and a (first or second) water production sensor) or that the application executable by the one or more processors is necessarily programmed (although it may be so programmed) to make such changes in the water index based on the output of such sensor.

[0078] Another embodiment of the system of the invention is a water exchange trading platform, comprising one or more processors configured to access memory storage of a reference water value, the reference water value based on a value of water in a particular geographic locale; one or more display devices; at least one of a first water proportion sensor configured to sense a quantity of water constituent in a first substance and a first water production sensor configured to sense a quantity of water used in production of the first substance; a first data feed connected to at least one of the first water proportion sensor and

2018278923 12 Dec 2018 the first water production sensor and configured to feed a varying parameter of the first substance and to feed an output of the at least one of the first water proportion sensor and the first water production sensor; a second water proportion sensor configured to sense a quantity of water constituent in a second substance and a second water production sensor configured to sense a quantity of water used in production of the second substance; a second data feed connected to the at least one of the second water proportion sensor and the first water production sensor and configured to feed a varying parameter of the second substance and to feed an output of the at least one of the second water proportion sensor and the second water production sensor; one or more network interfaces coupled with the one or more processors, wherein the one or more processors are configured to detect differences over time in the first data feed concerning at least one of (i) the varying parameter of the first substance and (ii) the at least one of the output of the first water proportion sensor and the output of the first water production sensor, wherein the one or more processors are configured to detect differences over time in the second data feed concerning at least one of (i) the varying parameter of the second substance and (ii) the at least one of the output of the second water proportion sensor and the output of the second water production sensor, an application executable by the one or more processors, execution of the application by the one or more processors configured to determine a water index value based on a mathematical combination of the varying parameter of the first substance, the at least one of the output of the first water proportion sensor and the output of the first water production sensor, and based on a mathematical combination of the varying parameter of the second substance and the at least one of the output of the first water proportion sensor and the output of the first water production sensor, such that increases in the varying parameter of the first or second substance and increases in outputs of the first or second water proportion sensors increase the water index value, decreases in the varying parameter of the first or second substance and decreases in outputs of the first or second water proportion sensors decrease the water index value, whereas increases in the output of the first or second water production sensor decrease the water index value and decreases in the output of the first or second water production sensor increase the water index value, and (b) determine a water index by mathematically adjusting the reference water value based on changes in the water index value, wherein the changes in the water index value are based on the detected differences in the first and second feeds, wherein the one or more processors are configured to repeatedly update the water index, and to initiate signals to each of the one or

2018278923 12 Dec 2018 more display devices to repeatedly display the updated water index when the one or more processors detect the differences over time in the first or second data feeds and determine a change in the water index value.

[0079] In one particular embodiment of a system of the present invention, a system for a trading platform for a water exchange, comprises one or more processors configured to access a memory storage; one or more display devices. The system also includes a first data feed configured to feed a constantly varying price condition of a first commodity (i.e. a first tangible freely traded product) and non-financial conditions of the first commodity, the nonfinancial conditions including conditions that describe a quantity of water constituent in the first commodity and a quantity of water used in production of the first commodity and a second data feed configured to feed a constantly varying price condition of a second commodity (i.e. a second tangible freely traded product) and non-financial conditions of the second commodity, the non-financial conditions including conditions that describe a quantity of water constituent in the second commodity and a quantity of water used in production of the second commodity. The system also includesone or more network interfaces coupled with the one or more processors, wherein the one or more processors are configured to detect differences over time in the first data feed concerning at least one of (i) the varying price condition of the first commodity and (ii) the non-financial conditions of the first commodity, wherein the one or more processors are configured to detect differences over time in the second data feed concerning at least one of (i) the varying price condition of the second commodity and (ii) the non-financial conditions of the second commodity. The system also includes an application executable by the one or more processors, and configured to determine at least one water index, by mathematically combining the constantly varying price condition of the first commodity with the non-financial conditions of the first commodity, and by mathematically combining the constantly varying price condition of the second commodity with the non-financial conditions of the second commodity. In this system the one or more processors are configured to determine and constantly update each water index of the at least one water index and to initiate signals to each of the one or more display devices to display at least one updated water index of the at least one water index whenever the one or more processors detect the differences over time in the first or second data feeds. The system may further comprise water quality determining instruments for determining

2018278923 12 Dec 2018 water quality by measuring one or more substances in a collateral comprising water, wherein the one or more processors are configured to determine a value of the collateral from the water quality of the collateral and from the at least one water index. In a further aspect of this system, a water index of the at least one water index is also based on a reference value of water in a particular geographic locale and wherein changes in the water index of the at least one water index are based on the detected differences from the first and second feeds. The system, in one aspect also comprises first sensors (941 through 945 or 241 through 244) for sensing non-financial conditions of the first commodity and second sensors (1941 through 1945 or 241 through 244) for sensing non-financial conditions of the second commodity, wherein the first data feed is connected to the first sensors and the second data feed is connected to the second sensors.

[0080] In another particular embodiment of a system of the present invention, there is a system for a trading platform for a water exchange, comprising: one or more processors configured to access memory storage of a reference water value, the reference water value based on a value of water in a particular geographic locale. The system also comprises one or more display devices, a first data feed configured to feed a constantly varying price condition of a first commodity and non-financial conditions of the first commodity (i.e. a first tangible freely traded product), the non-financial conditions including conditions that describe a quantity of water constituent in the first commodity and a quantity of water used in production of the first commodity and a second data feed configured to feed a constantly varying price condition of a second commodity (i.e. a second tangible freely traded product) and non-financial conditions of the second commodity, the non-financial conditions including conditions that describe a quantity of water constituent in the second commodity and a quantity of water used in production of the second commodity; one or more network interfaces coupled with the one or more processors. The one or more processors are configured to detect differences over time in the first data feed concerning at least one of (i) the varying price condition of the first commodity and (ii) the non-financial conditions of the first commodity, wherein the one or more processors are configured to detect differences over time in the second data feed concerning at least one of (i) the varying price condition of the second commodity and (ii) the non-financial conditions of the second commodity. The system also comprises an application executable by the one or more processors, execution of

2018278923 12 Dec 2018 the application by the one or more processors configured to (a) determine a water index value based on a mathematical combination of the constantly varying price condition of the first commodity and the non-financial conditions of the first commodity, and based on a mathematical combination of the constantly varying price condition of the second commodity and the non-financial conditions of the second commodity, and (b) determine a water index by mathematically adjusting the reference water value based on changes in the water index value, wherein the changes in the water index value are based on the detected differences in the first and second feeds The one or more processors are configured to constantly update the water index, and to initiate signals to each of the one or more display devices to constantly display the updated water index when the one or more processors detect the differences over time in the first or second data feeds and determine a change in the water index value. In a further aspect of this system, the system further comprises water quality determining instruments for determining water quality by measuring one or more substances in a collateral comprising water, wherein the one or more processors are configured to determine a value of the collateral from the water quality of the collateral and the at least one water index. In a further aspect, a water index of the at least one water index is also based on a first index value of water applied to a particular amount of water, a weight assigned to the first index value of water applied to the particular amount of water, the second index value of water applied to the particular amount of water and a weight assigned to the second index value of water applied to the particular amount of water. In another aspect of this system, the one or more processors are configured to detect differences over time in the first data feed concerning (i) the varying price condition of the first commodity and (ii) the non-financial conditions of the first commodity, and wherein the one or more processors are configured to detect differences over time in the second data feed concerning (i) the varying price condition of the second commodity and (ii) the non-financial conditions of the second commodity. The one or more processors may also be configured to detect differences over time in the first data feed concerning both (i) the varying price condition of the first commodity and (ii) the nonfinancial conditions of the first commodity, and wherein the one or more processors are configured to detect differences over time in the second data feed concerning both (i) the varying price condition of the second commodity and (ii) the non-financial conditions of the second commodity. The system, in one aspect also comprises first sensors (941 through 945 or 241 through 244) for sensing non-financial conditions of the first commodity and second

2018278923 12 Dec 2018 sensors (1941 through 1945 or 241 through 244) for sensing non-financial conditions of the second commodity, wherein the first data feed is connected to the first sensors and the second data feed is connected to the second sensors.

[0081] One embodiment of a method the invention is a computer-implemented method of connecting traders to a water exchange, comprising using a least one of a first water proportion sensor to sense a quantity of water constituent in a first substance and a first water production sensor to sense a quantity of water used in production of the first substance;

using at least one of a second water proportion sensor to sense a quantity of water constituent in a second substance and a second water production sensor to sense a quantity of water used in production of the second substance;

feeding one or more processors through a first data feed connected to the at least one of the first water proportion sensor and first water production sensor a varying parameter of the first substance and at least one of an output of the first water proportion sensor and an output of the first water production sensor;

feeding the one or more processors through a second data feed connected to the at least one the second water proportion sensor and second water production sensor a varying parameter of the second substance and at least one of an output of the second water proportion sensor and an output of the second water production sensor;

coupling one or more network interfaces to the one or more processors;

detecting, by the one or more processors, differences over time in the first data feed concerning at least one of (i) the varying parameter of the first substance and (ii) at least one of the output of the first proportion sensor and the output of the first production sensor, detecting, by the one or more processors differences over time in the second data feed concerning at least one of (i) the varying parameter of the second substance and (ii) at least one of the output of the second proportion sensor and the output of the second production sensor,

2018278923 12 Dec 2018 executing an application on the one or more processors to determine a first water index by mathematically combining the varying parameter of the first substance, and the at least one of the output of the first water proportion sensor and the output of the first water production sensor such that increases in the varying parameter of the first substance and increases in outputs of the first water proportion sensor increase the first water index value, decreases in the varying parameter of the first substance and decreases in outputs of the first water proportion sensor decrease the first water index value, whereas increases in the output of the first water production sensor decrease the first water index value and decreases in the output of the first water production sensor increase the first water index value;

executing the application on the one or more processors to determine a second water index by mathematically combining the varying parameter of the second substance, and the at least one of the output of the second water proportion sensor and the output of the second water production sensor such that increases in the varying parameter of the second substance and increases in outputs of the second water proportion sensor increase the second water index value, decreases in the varying parameter of the second substance and decreases in outputs of the second water proportion sensor decrease the second water index value, whereas increases in the output of the second water production sensor decrease the second water index value and decreases in the output of the second water production sensor increase the second water index value, determining and constantly updating, by the one or more processors, the first index and the second water index, the one or more processors initiating signals to each of the one or more display devices to display at least one updated water index of the first water index and the second water index whenever the one or more processors detect the differences over time in the first or second data feeds.

[0082] Another embodiment of a method of the invention is a computer-implemented method of connecting traders to a water exchange, comprising:

configuring one or more processors to access memory storage of a reference water value that is based on a value of water in a particular locale;

using at least one of a first water proportion sensor to sense a quantity of water constituent

2018278923 12 Dec 2018 in a first substance and a first water production sensor to sense a quantity of water used in production of the first substance;

feeding the one or more processors through a second data feed connected to the at least one of the second water proportion sensor and second water production sensor a varying parameter of the second substance and at least one of an output of the second water proportion sensor and an output of the second water production sensor;

coupling one or more network interfaces to the one or more processors;

detecting, by the one or more processors, differences over time in the first data feed concerning at least one of (i) the varying parameter of the first substance and (ii) at least one of the output of the first water proportion sensor and the output of the first water production sensor, detecting, by the one or more processors, differences over time in the second data feed concerning at least one of (i) the varying parameter of the second substance and (ii) at least one of the output of the second water proportion sensor and the output of the second water production sensor, executing an application on the one or more processors to (a) determine a water index value based on a mathematical combination of the varying parameter of the first substance, the at least one of the output of the first water proportion sensor and the output of the first water production sensor, the varying parameter of the second substance and the at least one of the output of the second water proportion sensor and

2018278923 12 Dec 2018 the output of the second water production sensor, such that increases in the varying parameter of the first or second substance and increases in outputs of the first or second water proportion sensors increase the water index value, decreases in the varying parameter of the first or second substance and decreases in outputs of the first or second water proportion sensors decrease the water index value, whereas increases in the output of the first or second water production sensor decrease the water index value and decreases in the output of the first or second water production sensor increase the water index value and (b) determine a water index by mathematically adjusting the reference water value based on changes in the water index value, wherein the changes in the water index value are based on the detected differences in the first and second feeds, the one or more processors constantly updating the water index and initiating signals to each of the one or more display devices to constantly display the updated water index when the one or more processors detect the differences over time in the first or second data feeds and determine a change in the water index value, and the one or more display devices repeatedly displaying the constantly updated water index.

[0083] Another method of the invention is a computer-implemented method of increasing a volatility of a commodity, comprising:

using a least one of a first water proportion sensor to sense a quantity of water constituent in a first substance and a first water production sensor to sense a quantity of water used in production of the first substance;

coupling one or more network interfaces to the one or more processors;

detecting, by the one or more processors, differences over time in the first data feed concerning at least one of (i) the varying parameter of the first substance and (ii) at least one

2018278923 12 Dec 2018 of the output of the first proportion sensor and the output of the first production sensor, executing an application on the one or more processors to determine a first water index by mathematically combining the varying parameter of the first substance, and the at least one of the output of the first water proportion sensor and the output of the first water production sensor such that increases in the varying parameter of the first substance and increases in outputs of the first water proportion sensor increase the first water index value, decreases in the varying parameter of the first substance and decreases in outputs of the first water proportion sensor decrease the first water index value, whereas increases in the output of the first water production sensor decrease the first water index value and decreases in the output of the first water production sensor increase the first water index value;

determining and constantly updating, by the one or more processors, the first index, the one or more processors initiating signals to each of the one or more display devices to display a updated first water index whenever the one or more processors detect the differences over time in the first or second data feeds.

[0084] One method of the present invention is a method of connecting traders to a water exchange, comprising a step of feeding one or more processors through a first data feed a constantly varying price condition of a first commodity and non-financial conditions of the first commodity, the non-financial conditions including conditions that describe a quantity of water constituent in the first commodity and a quantity of water used in production of the first commodity. The method also has a further step of feeding the one or more processors through a second data feed a constantly varying price condition of a second commodity and non-financial conditions of the second commodity, the non-financial conditions including conditions that describe a quantity of water constituent in the second commodity and a quantity of water used in production of the second commodity. The method also has a step of coupling one or more network interfaces to the one or more processors. In the method there is also a step of detecting, by the one or more processors, differences over time in the first data feed concerning at least one of (i) the varying price condition of the first commodity and (ii) the non-financial conditions of the first commodity, and a step of detecting, by the one or more processors differences over time in the second data feed concerning at least one of (i)

2018278923 12 Dec 2018 the varying price condition of the second commodity and (ii) the non-financial conditions of the second commodity. The method also has a step of executing an application on the one or more processors to determine at least one water index by mathematically combining the constantly varying price condition of the first commodity with the non-financial conditions of the first commodity, and mathematically combining the constantly varying price condition of the second commodity with the non-financial conditions of the second commodity. There is also a step of determining and constantly updating, by the one or more processors, each water index of the at least one water index. The method also comprises a step of the one or more processors initiating signals to each of the one or more display devices to display at least one updated water index of the at least one water index whenever the one or more processors detect the differences over time in the first or second data feeds. One aspect of this method comprises using water quality appraisal instruments to determine water quality of a water collateral by measuring one or more substances in the water collateral, and having the one or more processors determine a value of the water collateral from the water quality of the water collateral and from the at least one water index. A further aspect of the method comprises determining a water index of the at least one water index based also on a value of water in a particular geographic location such that changes in the index value of water are based on the detected differences from the first and second feeds.

[0085] There is also an embodiment of a method of the present invention in which a method of connecting traders to a water exchange, comprises a step of configuring one or more processors to access memory storage of a reference water value that is based on a value of water in a particular locale. This method further comprises a step of feeding one or more processors through a first data feed a constantly varying price condition of a first commodity and non-financial conditions of the first commodity, the non-financial conditions including conditions that describe a quantity of water constituent in the first commodity and a quantity of water used in production of the first commodity and a step of feeding the one or more processors through a second data feed a constantly varying price condition of a second commodity and non-financial conditions of the second commodity, the non-financial conditions including conditions that describe a quantity of water constituent in the second commodity and a quantity of water used in production of the second commodity. This method also comprises a step of coupling one or more network interfaces to the one or more

2018278923 12 Dec 2018 processors. Another step of this method is detecting, by the one or more processors, differences over time in the first data feed concerning at least one of (i) the varying price condition of the first commodity and (ii) the non-financial conditions of the first commodity, and a step of detecting, by the one or more processors, differences over time in the second data feed concerning at least one of (i) the varying price condition of the second commodity and (ii) the non-financial conditions of the second commodity. This method also comprises a step of executing an application on the one or more processors to (a) determine a water index value based on a mathematical combination of the constantly varying price condition of the first commodity, the non-financial conditions of the first commodity, the constantly varying price condition of the second commodity and the non-financial conditions of the second commodity, and (b) determine a water index by mathematically adjusting the reference water value based on changes in the water index value, wherein the changes in the water index value are based on the detected differences in the first and second feeds. In this method, the one or more processors are constantly updating the water index and initiating signals to each of the one or more display devices to constantly display the updated water index when the one or more processors detect the differences over time in the first or second data feeds and determine a change in the water index value. The the one or more display devices repeatedly displaying the constantly updated water index. In one further aspect of this method, water quality determining instruments are used to determine water quality of a water collateral by measuring one or more substances in the water collateral, and the one or more processors determine a value of the water collateral from the water quality of the water collateral and from the water index. A still further aspect of this method further comprises determining the water index based on a first index value of water applied to a particular amount of water, a weight assigned to the first index value of water applied to the particular amount of water, a second index value of water applied to the particular amount of water and a weight assigned to the second index value of water applied to the particular amount of water.

[0086] In sum, although various example embodiments have been described in considerable detail, variations and modifications thereof and other embodiments are possible. Therefore, the spirit and scope of the appended claims is not limited to the description of the embodiments contained herein.

Claims

1. An investment instrument comprising:

a) a collateral, and

b) a virtual value of a substance of said collateral in at least one product.

2. The investment instrument of claim 1, wherein trade in said substance is regulated and said at least one product is a publicly traded commodity.

3. The investment instrument of claim 2, wherein said substance is fresh water.

4. The investment instrument of claim 2, wherein said at least one product includes at least one commodity of an agricultural commodity, a manufactured commodity and a fuel.

5. The investment instrument of claim 1 wherein said virtual value further depends on at least one factor selected from the group consisting of a quantity of said substance constituent in said at least one product, a quantity of said substance utilized to produce said at least one product, a quantity of an output from said at least one product and a quantity of a constituent of said at least one product.

6. The investment instrument of claim 1, where said virtual value further depends on at least one of a market weight of said at least one product and a quantity of said substance utilized in producing said at least one product.

7. A method of investing comprising the steps of: a) calculating an index value of a substance, and b) computing a virtual value of said substance in at least one product, and wherein said index value is at least partially dependent on said virtual value.

8. The method of claim 7, further including the step of: c) acquiring a right to a collateral containing said substance, said acquiring according to said index value.

2018278923 12 Dec 2018

9. The method of claim 7, wherein trade in said substance is regulated and said at least one product is a publicly traded commodity.

10. The method of claim 9, wherein said substance is fresh water.

11. The method of claim 9, wherein said at least one product includes at least one commodity selected from the group consisting of an agricultural commodity, a manufactured commodity, and a fuel.

12. The method of claim 7 wherein said calculating includes at least one subsubstep selected from evaluating a quantity of said substance constituent in said at least one product, evaluating a quantity of said substance utilized to produce said at least one product, evaluating a quantity of said substance output from at least one product and evaluating a quantity of an output from said at least one product.

13. A method of trading a collateral comprising the steps of: a) determining a market value of at lease a portion of the collateral based on an index value of a substance of the collateral, and b) calculating said index value, wherein said index value is at least partially dependent on a virtual value of said substance in at least one product of said substance.

14. The method of claim 13, further comprising: c) marketing a right to said at least a portion of the collateral according to said market value.

15. The method of claim 13, wherein trade in said substance is regulated and said at least one product is a publicly traded commodity.

16. The method of claim 15, wherein said substance is fresh water.

17. The method of claim 15, wherein said at least one product is selected from group an agricultural commodity, a manufactured commodity, and a fuel.

2018278923 12 Dec 2018

18. The method of claim 13 wherein said virtual value further depends on at least one factor selected from the group consisting of: a quantity of said substance constituent in said at least one product, a quantity of said substance utilized to produce said at least one product, a quantity an output from said at least one product and a quantity of a constituent of said at least one product.

19. A system to compute a value of a collateral comprising: a) a memory configured to store a virtual value of a substance of the collateral, and b) a processor configured for computing said virtual value of said substance in at least one product of said substance.

20. The system of claim 19, wherein said substance is a regulated commodity and said at least one product is a freely traded commodity.

21. The system claim 19, wherein said substance is fresh water.

22. The system claim 19, wherein said at least one product includes at least one commodity selected from the group consisting of an agricultural commodity, a manufactured commodity, and a fuel.

23. The system claim 19, wherein said memory is further configured to store at least one factor selected from the group consisting of: a quantity of said substance in said at least one product, a quantity of said substance utilized to produce said at least one product, and a quantity of an output produced by from said at least one product.

24. The system claim 19, wherein said processor is further configured to calculate an index value of said substance, said index value being at least partially dependent on said virtual value.

25. A system for trading water using financial instruments, each of the financial instruments identifying a particular amount of water, the value of the financial

2018278923 12 Dec 2018 instruments determined by an index value of the water and by the particular amount of water, comprising:

a processor configured to determine the index value of the water based on a value of at least one commodity other than water and based on at least one of (i) a quantity of water utilized in production of the at least one commodity and (ii) a quantity of water constituent in the at least one commodity, wherein the index value of the water is determined by the processor using one or more mathematical operations to mathematically combine the value of the at least one other commodity and the at least one of (i) a quantity of water utilized to product the at least one commodity and (ii) a quantity of water constituent in the at least one other commodity, the processor further configured to re-calculate the index value of the water based at least in part on updates in the value of the at least one commodity.

26. The system of claim 25, further comprising a display device for displaying the index value of the water to generate trading of the financial instruments.

27. The system of claim 25, wherein the processor is configured to re-calculate the index value in real time.

28. A system for trading water using financial instruments, each of the financial instruments identifying a particular amount of water, the value of the financial instruments determined by a value of the water and by the particular amount of water, comprising:

one or more processors configured to (a) determine a first index value of the water based on an updateable value of a first tradable product other than water, based on an amount of water utilized to produce a quantity of the first tradable product and based on an amount of water constituent in the first tradable product, wherein the first index value of the water is determined by the processor using one or more mathematical operations to mathematically combine the value of the first tradable product, the amount of water utilized to produce the first tradable product and the amount of water constituent in

2018278923 12 Dec 2018 the first tradable product and (b) determine a second index value of the water based on an updateable value of a second tradable product other than water, based, directly or indirectly, on an amount of water utilized to produce a quantity of the second tradable product and based on an amount of water constituent in the second tradable product.

29. The system of claim 28, further comprising a display device for displaying at least one of the first index value and the second index value of the water, in order to generate trading of the financial instruments.

30. The system of claim 28 or 29, wherein one or more of the financial instruments is a water basket financial instrument whose index value is determined by at least the first index value of the water, a first weight assigned to the first index value, the second index value of the water and by a second weight assigned to the second index value.

31. The system of claim 28 or 29 or 30, wherein the processor is further configured to re-calculate the index value of the water based at least in part on updates in the value of the at least one commodity and updates in weights assigned to the first and second index values.

32. A system for trading water using financial instruments, each of the financial instruments identifying a particular· amount of water, the value of the financial instruments determined by an index value of the water and by the particular amount of water, comprising:

one or more processors configured to determine the index value of the water based on a current value of a first tradable product other than water, an amount of water utilized in production of the first tradable product, an amount of water constituent in the first tradable product, a first weight assigned to the first tradable product, a current value of a second tradable product other than water, an amount of water utilized in production of the second tradable product, an amount of water constituent in the second tradable product and a second weight assigned to the second tradable product,

2018278923 12 Dec 2018 wherein the index value of the water is determined by the processor using one or more mathematical operations to mathematically combine the current value of the first tradable product other than water, an amount of water utilized in production of the first tradable product, an amount of water constituent in the first tradable product, a first weight assigned to the first tradable product, a current value of a second tradable product other than water, an amount of water utilized in production of the second tradable product an amount of water constituent in the second tradable product and a second weight assigned to the second tradable product; and a display device for displaying the index value of the water to generate trading of the financial instruments,

33. The system of claim 32, wherein the first and second weights reflect relative market weights of the first and second tradable products.

34. A method of investing in water using financial instruments, each financial instrament identifying a particular amount of water, the value of each financial instruments determined by an index value of the water and by the particular amount of water, comprising:

determining, using a processor, the index value of the water based on a value of a first commodity other than water, based on an amount of water utilized in production of the first commodity, based on an amount of water constituent in the first commodity and based on a first weight reflecting a market share of the first commodity, based on a value of a second commodity other than water, based on an amount of water utilized in production of the second commodity and based on an amount of water constituent in the second commodity and based on a second weight reflecting a market share of the second commodity, wherein the index value of the water is determined by the processor using one or more mathematical operations to mathematically combine the value of the first commodity, the amount of water utilized in production of the first commodity, the amount of water constituent in the first commodity, the first weight, the value of the second commodity, the amount of water utilized in production of the second

2018278923 12 Dec 2018 commodity, the amount of water constituent in the second commodity and the second weight.

35. The method of claim 34, further comprising the processor re-calculating the index value of the water based at least in part on an update of at least one (a) the value of the first commodity and (b) the value of the second commodity.

36. The method of claim 35, further comprising the processor re-calculating the index value based at least in part on an update of at least one of (a) the first weight and (b) the second weight.

37. A system used in trading based on an index value for fresh water that is based on a value of water in at least one traded product, the system comprising:

a) a processor configured to receive updateable current price data for at least one traded product that contains fresh water or whose production utilizes water and to acquire data for the at least one traded product, the data representing a quantity of fresh water constituent in the at least one traded product or a quantity of water utilized in production of the at least one traded product;

the processor configured to compute an updateable current index value of fresh water based on the updateable current price data of the at least one traded product, and based on at least one of the quantity of fresh water constituent in said at least one traded product and the quantity of water utilized to produce said at least one traded product, the processor configured to thereby generate an updateable current index value of fresh water that represents a stable price of fresh water;

b) a memory associated with the processor and configured to store the updateable current index value of fresh water and to store at least one of the quantity of fresh water constituent in each traded product and the quantity of water utilized to produce the at least one traded product; and

c) a display device in communication with the processor and/or memory, the display device for receiving and displaying the current updateable index value of fresh water so as to generate trading particular amounts of fresh water using the current

2018278923 12 Dec 2018 updateable index value of the fresh water.

38. The system of claim 37, wherein the processor is also configured to receive updateable data as to a market weight of the at least one traded product and wherein the processor is also configured to compute the current index value of fresh water based also on the market weight of said at least one traded product.

39. The system of claim 37 or 38, further comprising a financial instrument identifying a quantity of fresh water, a value of the financial instrument determined based on the identified quantity of fresh water and based on the updateable cun’ent index value for fresh water computed by the processor.

40. The system of claim 39, wherein the processor is configured to determine the value of the financial instrument.

41. The system of claim 40, wherein the financial instrument is based on a collateral comprising a source of water.

42. The system of claim 37, wherein the water is fresh water.

43. A system used in trading water, comprising:

a processor for receiving an updateable current value of a first commodity other than water, a second commodity other than water and a third commodity other than water, the updateable current value of the first, second and third commodity published or displayed by a commodities data source, the processor also configured to determine an index value of water from the updateable current values of the first, second and third commodity, from first, second and third weights assigned to the respective first, second and third commodities, from at least one of (A) a quantity of water utilized in production of the at least one commodity, and (B) a quantity of water constituent in the second commodity, from at least one of (A) a quantity of water utilized in production of the second

2018278923 12 Dec 2018 commodity, and (B) a quantity of water constituent in the second commodity and from at least one of (A) a quantity of water utilized in production of the third commodity and (B) a quantity of water constituent in the third commodity, wherein the index value of the water is determined by the processor using mathematical operations to mathematically combine the updateable current values of the first, second and third commodities, the first, second and third weights and the at least one of (A) the quantity of water utilized in production of the first commodity, and (B) the quantity of water constituent in the first commodity, the at least one of (A) the quantity of water utilized in production of the second commodity, and (B) the quantity of water constituent in the second commodity, and the at least one of (A) the quantity of water utilized in production of the third commodity, and (B) the quantity of water constituent in the third commodity; and a display for displaying the index value of the water so as to generate trading of the water.

44. The system of claim 43, wherein the at least one of (A) the quantity of water utilized in production of the first commodity and (B) the quantity of water constituent in the first commodity includes both the quantity of water utilized in production of the first commodity and (B) the quantity of water constituent in the first commodity.

45. The system of claim 43 or 44, wherein the at least one of (A) the quantity of water utilized in production of the second commodity and (B) the quantity of water constituent in the second commodity includes both the quantity of water utilized in production of the second commodity and (B) the quantity of water constituent in the second commodity.

46. The system of claim 43 or 44 or 45, wherein the first, second and third weights reflect respect market weights of the first, second and third commodities.

47. The system of claim 43 or 44 or 45 or 46, wherein the processor is configured to determine the index value of the water also based on a quantity of an output of the at least one commodity.

2018278923 12 Dec 2018

48. The system of claim 43 or 44 or 45 or 46, wherein the processor is configured to determine the index value of the water by taking into consideration a quality of the water.

49. A method used in trading water based on a stable index value of the water, comprising:

a processor receiving a current value of at least one commodity, the current value published or displayed by a commodities data source;

the processor determining an index value of the water from (A) the current value of the at least one commodity, (B) an evaluation of an amount of water constituent in a quantity of the least one commodity, and (C) an evaluation of the amount of water utilized in production of the quantity of the at least one commodity, wherein the index value of the water is determined by the processor using one or more mathematical operations to mathematically combine the cun-ent value of the at least one commodity, the amount of water constituent in the quantity of the at least one commodity and the amount of water utilized in production of the quantity of the at least one commodity; and displaying the index value of the water on a display device to generate trading of the water.

50. The method of claim 49, further comprising trading financial instruments using water as collateral, each of the financial instruments identifying a particular amount of water, the value of each financial instrument determined using the cun-ent index value of the water and the particular amount of the water.

51. A method of trading water using financial instruments, each of the financial instruments identifying a particular amount of water, the value of the financial instruments determined by an index value of the water and by the particular amount of water, comprising:

assigning a first weight to a first tradable product based on a market share of the first tradable product other than water;

2018278923 12 Dec 2018 assigning a second weight to a second tradable product based on a market share of the second tradable product;

assigning a third weight to a third tradable product based on a market share of the third tradable product other than water;

receiving updateable data concerning an amount of water utilized in production of the first tradable product, an amount of water utilized in production of the second tradable product, an amount of water utilized in production of the third tradable product other than water;

receiving data concerning an amount of water constituent in the first tradable product, concerning an amount of water constituent in the second tradable product and an amount of water constituent in the third tradable product;

one or more processors determining the index value of the water based on a current value of the first tradable product, the amount of water utilized in production of the first tradable product, the amount of water constituent in the first tradable product, the first weight, the current value of a second tradable product, the amount of water utilized in production of the second tradable product, the amount of water constituent in the second tradable product, the second weight, the current value of the third tradable product, the amount of water utilized in production of the second tradable product, the amount of water constituent in the third tradable product and the third weight, wherein the index value is determined by the processor by using one or more mathematical operations to mathematically combine the current value of the first tradable product, the amount of water utilized in production of the first tradable product, the amount of water constituent in the first tradable product, the first weight, the current value of a second tradable product, the amount of water utilized in production of the second tradable product, the amount of water constituent in the second tradable product, the second weight, the current value of the third tradable product, the amount of water utilized in production of the second tradable product, the amount of water constituent in the third tradable product and the third weight; and a display device displaying the index value of the water to generate trading of the financial instruments.

2018278923 12 Dec 2018

52. The method of claim 51, further comprising re-calculating the index value when new data is received changing at least one of (a) the value of the first tradable product, (b) the value of the second tradable product and (c) the value of the third tradable product.

53. The method of claim 51 or 52, further comprising re-calculating the index value when new data is received concerning at least one of (a) the value of the first tradable product, (b) the value of the second tradable product, (c) the value of the third tradable product and (d) one of the first, second and third weights.

54. The method of claim 51 or 52 or 53, further comprising using a source of water as a collateral to secure the financial instraments.

55. A system for a trading platform for a water exchange, comprising:

one or more processors configured to access a memory storage; one or more display devices;

a first data feed configured to feed a constantly varying price condition of a first commodity and non-financial conditions of the first commodity, the non-financial conditions including conditions that describe a quantity of water constituent in the first commodity and a quantity of water used in production of the first commodity;

a second data feed configured to feed a constantly varying price condition of a second commodity and non-financial conditions of the second commodity, the nonfinancial conditions including conditions that describe a quantity of water constituent in the second commodity and a quantity of water used in production of the second commodity;

one or more network interfaces coupled with the one or more processors; wherein the one or more processors are configured to detect differences over time in the first data feed concerning at least one of (i) the varying price condition of the first commodity and (ii) the non-financial conditions of the first commodity, wherein the one or more processors are configured to detect differences over time in the second data feed concerning at least one of (i) the varying price condition of the

2018278923 12 Dec 2018 second commodity and (ii) the non-financial conditions of the second commodity, an application executable by the one or more processors, and configured to determine at least one water index, by mathematically combining the constantly varying price condition of the first commodity with the non-financial conditions of the first commodity, and by mathematically combining the constantly varying price condition of the second commodity with the non-financial conditions of the second commodity, wherein the one or more processors are configured to determine and constantly update each water index of the at least one water index and to initiate signals to each of the one or more display devices to display at least one updated water index of the at least one water index whenever the one or more processors detect the differences over time in the first or second data feeds.

56. The system of claim 55, further comprising water quality determining instruments for determining water quality by measuring one or more substances in a collateral comprising water, wherein the one or more processors are configured to determine a value of the collateral from the water quality of the collateral and from the at least one water index.

57. The system of claim 55 or 56, wherein a water index of the at least one water index is also based on a reference value of water in a particular geographic locale and wherein changes in the water index of the at least one water index are based on the detected differences from the first and second feeds.

58. The system of any one of claims 55 to 57, further comprising first sensors for sensing non-financial conditions of the first commodity and second sensors for sensing non-financial conditions of the second commodity, wherein the first data feed is connected to the first sensors and the second data feed is connected to the second

2018278923 12 Dec 2018 sensors.

59. A system for a trading platform for a water exchange, comprising:

one or more processors configured to access memory storage of a reference watervalue, the reference water value based on a value of water in a particular geographic locale;

one or more display devices;

a first data feed configured to feed a constantly varying price condition of a first commodity and non-financial conditions of the first commodity, the nonfinancial conditions including conditions that describe a quantity of water constituent in the first commodity and a quantity of water used in production of the first commodity;

one or more network interfaces coupled with the one or more processors, wherein the one or more processors are configured to detect differences over time in the first data feed concerning at least one of (i) the varying price condition of the first commodity and (ii) the non-financial conditions of the first commodity, wherein the one or more processors are configured to detect differences over time in the second data feed concerning at least one of (i) the varying price condition of the second commodity and (ii) the non-financial conditions of the second commodity, an application executable by the one or more processors, execution of the application by the one or more processors configured to (a) determine a water index value based on a mathematical combination of the constantly varying price condition of the first commodity and the non-financial conditions of the first commodity, and based on a mathematical combination of the constantly varying price condition of the second commodity and the non-financial conditions of the second commodity, and (b) determine a water index by mathematically adjusting the reference water value

2018278923 12 Dec 2018 based on changes in the water index value, wherein the changes in the water index value are based on the detected differences in the first and second feeds, wherein the one or more processors are configured to constantly update the water index, and to initiate signals to each of the one or more display devices to constantly display the updated water index when the one or more processors detect the differences over time in the first or second data feeds and determine a change in the water index value.

60. The system of claim 59, farther comprising water quality determining instruments for determining water quality by measuring one or more substances in a collateral comprising water, wherein the one or more processors are configured to determine a value of the collateral from the water quality of the collateral and the at least one water index.

61. The system of any one of claims 59 or 60, wherein a water index of the at least one water index is also based on a first index value of water applied to a particular amount of water, a weight assigned to the first index value of water applied to the particular amount of water, the second index value of water applied to the particular amount of water and a weight assigned to the second index value of water applied to the particular amount of water.

62. The system of any one of claims 59 to 61, wherein the one or more processors are configured to detect differences over time in the first data feed concerning (i) the varying price condition of the first commodity and (ii) the non-financial conditions of the first commodity, and wherein the one or more processors are configured to detect differences over time in the second data feed concerning (i) the varying price condition of the second commodity and (ii) the non-financial conditions of the second commodity.

63. The system of any one of claims 59 to 62, wherein the one or more processors are configured to detect differences over time in the first data feed concerning (i) the

2018278923 12 Dec 2018 varying price condition of the first commodity and (ii) the non-financial conditions of the first commodity, and wherein the one or more processors are configured to detect differences over time in the second data feed concerning (i) the varying price condition of the second commodity and (ii) the non-financial conditions of the second commodity.

64. The system of any one of claims 59 to 63, further comprising first sensors for sensing non-financial conditions of the first commodity and second sensors for sensing non-financial conditions of the second commodity, wherein the first data feed is connected to the first sensors and the second data feed is connected to the second sensors.

65. A method of connecting traders to a water exchange, comprising:

feeding one or more processors through a first data feed a constantly varying price condition of a first commodity and non-financial conditions of the first commodity, the non-financial conditions including conditions that describe a quantity of water constituent in the first commodity and a quantity of water used in production of the first commodity;

feeding the one or more processors through a second data feed a constantly varying price condition of a second commodity and non-financial conditions of the second commodity, the non-financial conditions including conditions that describe a quantity of water constituent in the second commodity and a quantity of water used in production of the second commodity;

coupling one or more network interfaces to the one or more processors;

detecting, by the one or more processors, differences over time in the first data feed concerning at least one of (i) the varying price condition of the first commodity and (ii) the non-financial conditions of the first commodity, detecting, by the one or more processors differences over time in the second data feed concerning at least one of (i) the varying price condition of the second commodity and (ii) the non-financial conditions of the second commodity, executing an application on the one or more processors to determine at least one water index by mathematically combining the constantly varying price condition of

2018278923 12 Dec 2018 the first commodity with the non-financial conditions of the first commodity, and mathematically combining the constantly varying price condition of the second commodity with the non-financial conditions of the second commodity, determining and constantly updating, by the one or more processors, each water index of the at least one water index;

the one or more processors initiating signals to each of the one or more display devices to display at least one updated water index of the at least one water index whenever the one or more processors detect the differences over time in the first or second data feeds.

66. The method of claim 65, further comprising using water quality appraisal instruments to determine water quality of a water collateral by measuring one or more substances in the water collateral, and having the one or more processors determine a value of the water collateral from the water quality of the water collateral and from the at least one water index.

67. The method of claim 65 or 66, determining a water index of the at least one water index based also on a value of water in a particular geographic location such that changes in the index value of water are based on the detected differences from the first and second feeds.

68. A method of connecting traders to a water exchange, comprising:

feeding the one or more processors through a second data feed a constantly varying price condition of a second commodity and non-financial conditions of the second commodity, the non-financial conditions including conditions that describe a

2018278923 12 Dec 2018 quantity of water constituent in the second commodity and a quantity of water used in production of the second commodity;

coupling one or more network interfaces to the one or more processors;

detecting, by the one or more processors, differences over time in the first data feed concerning at least one of (i) the varying price condition of the first commodity and (ii) the non-financial conditions of the first commodity, detecting, by the one or more processors, differences over time in the second data feed concerning at least one of (i) the varying price condition of the second commodity and (ii) the non-financial conditions of the second commodity, executing an application on the one or more processors to (a) determine a water index value based on a mathematical combination of the constantly varying price condition of the first commodity, the non-financial conditions of the first commodity, the constantly varying price condition of the second commodity and the non-financial conditions of the second commodity, and (b) determine a water index by mathematically adjusting the reference water value based on changes in the water index value, wherein the changes in the water index value are based on the detected differences in the first and second feeds, the one or more processors constantly updating the water index and initiating signals to each of the one or more display devices to constantly display the updated water index when the one or more processors detect the differences over time in the first or second data feeds and determine a change in the water index value, and the one or more display devices repeatedly displaying the constantly updated water index.

69. The method of claim 68, further comprising using water quality determining instruments to determine water quality of a water collateral by measuring one or more substances in the water collateral, and having the one or more processors determine a value of the water collateral from the water quality of the water collateral and from the water index.

70. The method of claim 68 or 69, further comprising determining the water index

2018278923 12 Dec 2018 based on a first index value of water applied to a particular amount of water, a weight assigned to the first index value of water applied to the particular amount of water, a second index value of water applied to the particular amount of water and a weight assigned to the second index value of water applied to the particular amount of water.

71. A system for trading water using financial instruments, each of the financial instruments identifying a particular amount of water, the value of the financial instruments determined by an index value of the water and by the particular amount of water, comprising:

a processor configured to determine the index value of the water based on a value of at least one commodity other than water and based on at least one of (i) a quantity of water utilized in production of the at least one commodity and (ii) a quantity of water constituent in the at least one commodity, wherein the index value of the water is determined by the processor using one or more mathematical operations to mathematically combine the value of the at least one other commodity and the at least one of (i) a quantity of water utilized to produce the at least one commodity and (ii) a quantity of water constituent in the at least one other commodity, the processor further configured to re-calculate the index value of the water based at least in part on updates in the value of the at least one commodity.

72. A system for trading water using financial instruments, each of the financial instruments identifying a particular amount of water, the value of the financial instruments determined by a value of the water and by the particular amount of water, comprising:

one or more processors configured to (a) determine a first index value of the water based on an updateable value of a first tradable product other than water, based on an amount of water utilized to produce a quantity of the first tradable product and based on an amount of water constituent in the first tradable product, wherein the first index value of the water is determined by the processor using one or more mathematical operations to

2018278923 12 Dec 2018 mathematically combine the value of the first tradable product, the amount of water utilized to produce the first tradable product and the amount of water constituent in the first tradable product and (b) determine a second index value of the water based on an updateable value of a second tradable product other than water, based, directly or indirectly, on an amount of water utilized to produce a quantity of the second tradable product and based on an amount of water constituent in the second tradable product;

a display device for displaying at least one of the first index value and the second index value of the water, in order to generate trading of the financial instruments, wherein one or more of the financial instruments is a water basket financial instrument whose index value is determined by at least the first index value of the water, a first weight assigned to the first index value, the second index value of the water and by a second weight assigned to the second index value.

73. The system of any one of claims 19 to 33 or 37 to 48 and further including a system for a trading platform for a water exchange, comprising:

one or more network interfaces coupled with the one or more processors; wherein the one or more processors are configured to detect differences over time in the first data feed concerning at least one of (i) the varying price condition of the first commodity and (ii) the non-financial conditions of the first commodity,

2018278923 12 Dec 2018 wherein the one or more processors are configured to detect differences over time in the second data feed concerning at least one of (i) the varying price condition of the second commodity and (ii) the non-financial conditions of the second commodity, an application executable by the one or more processors, and configured to determine at least one water index, by mathematically combining the constantly varying price condition of the first commodity with the non-financial conditions of the first commodity, and by mathematically combining the constantly varying price condition of the second commodity with the non-financial conditions of the second commodity, wherein the one or more processors are configured to determine and constantly update each water index of the at least one water index and to initiate signals to each of the one or more display devices to display at least one updated water index of the at least one water index whenever the one or more processors detect the differences over time in the first or second data feeds.

74. The system of claim 73, further comprising water quality determining instruments for determining water quality by measuring one or more substances in a collateral comprising water, wherein the one or more processors are configured to determine a value of the collateral from the water quality of the collateral and from the at least one water index.

75. The system of claim 73 or 74, wherein a water index of the at least one water index is also based on a reference value of water in a particular geographic locale and wherein changes in the water index of the at least one water index are based on the detected differences from the first and second feeds.

76. The system of any one of claims 73 to 75, further comprising first sensors for sensing non-financial conditions of the first commodity and second sensors for sensing non-financial conditions of the second commodity, wherein the first data feed is connected to the first sensors and the second data feed is connected to the second sensors.

2018278923 12 Dec 2018

77. The system of any one of claims 19 to 33 or 37 to 48 and further including a system for a trading platform for a water exchange, comprising:

one or more processors configured to access memory storage of a reference water value, the reference water value based on a value of water in a particular geographic locale;

one or more display devices;

one or more network interfaces coupled with the one or more processors, wherein the one or more processors are configured to detect differences over time in the first data feed concerning at least one of (i) the varying price condition of the first commodity and (ii) the non-financial conditions of the first commodity, wherein the one or more processors are configured to detect differences over time in the second data feed concerning at least one of (i) the varying price condition of the second commodity and (ii) the non-financial conditions of the second commodity, an application executable by the one or more processors, execution of the application by the one or more processors configured to (a) determine a water index value based on a mathematical combination of the constantly varying price condition of the first commodity and the non-financial conditions of the first commodity, and based on a mathematical combination of the constantly varying price condition of the second commodity and the non-financial conditions of the second commodity, and (b) determine a water index by mathematically adjusting the reference water value based on changes in the water index value, wherein the changes in the water index

2018278923 12 Dec 2018 value are based on the detected differences in the first and second feeds, wherein the one or more processors are configured to constantly update the water index, and to initiate signals to each of the one or more display devices to constantly display the updated water index when the one or more processors detect the differences over time in the first or second data feeds and determine a change in the water index value.

78. The system of claim 77, further comprising water quality determining instruments for determining water quality by measuring one or more substances in a collateral comprising water, wherein the one or more processors are configured to determine a value of the collateral from the water quality of the collateral and the at least one water index.

79. The system of any one of claims 77 or 78, wherein a water index of the at least one water index is also based on a first index value of water applied to a particular amount of water, a weight assigned to the first index value of water applied to the particular amount of water, the second index value of water applied to the particular amount of water and a weight assigned to the second index value of water applied to the particular amount of water.

80. The system of any one of claims 77 to 79, wherein the one or more processors are configured to detect differences over time in the first data feed concerning (i) the varying price condition of the first commodity and (ii) the non-financial conditions of the first commodity, and wherein the one or more processors are configured to detect differences over time in the second data feed concerning (i) the varying price condition of the second commodity and (ii) the non-financial conditions of the second commodity.

81. The system of any one of claims 77 to 80, wherein the one or more processors are configured to detect differences over time in the first data feed concerning (i) the varying price condition of the first commodity and (ii) the non-financial conditions of

2018278923 12 Dec 2018 the first commodity, and wherein the one or more processors are configured to detect differences over time in the second data feed concerning (i) the varying price condition of the second commodity and (ii) the non-financial conditions of the second commodity.

82. The system of any one of claims 77 to 81, further comprising first sensors for sensing non-financial conditions of the first commodity and second sensors for sensing non-financial conditions of the second commodity, wherein the first data feed is connected to the first sensors and the second data feed is connected to the second sensors.

83. The method of any one of claims 7 to 18 or claims 34 to 36 or claims 49 to 54, the method further comprising a method of connecting traders to a water exchange, comprising:

coupling one or more network interfaces to the one or more processors;

detecting, by the one or more processors, differences over time in the first data feed concerning at least one of (i) the varying price condition of the first commodity and (ii) the non-financial conditions of the first commodity, detecting, by the one or more processors differences over time in the second data feed concerning at least one of (i) the varying price condition of the second commodity and (ii) the non-financial conditions of the second commodity, executing an application on the one or more processors to determine at least one

2018278923 12 Dec 2018 water index by mathematically combining the constantly varying price condition of the first commodity with the non-financial conditions of the first commodity, and mathematically combining the constantly varying price condition of the second commodity with the non-financial conditions of the second commodity, determining and constantly updating, by the one or more processors, each water index of the at least one water index;

84. The method of claim 83, further comprising using water quality appraisal instruments to determine water quality of a water collateral by measuring one or more substances in the water collateral, and having the one or more processors determine a value of the water collateral from the water quality of the water collateral and from the at least one water index.

85. The method of claim 83 or 84, determining a water index of the at least one water index based also on a value of water in a particular geographic location such that changes in the index value of water are based on the detected differences from the first and second feeds.

86. The method of any one of claims 7 to 18 or claims 34 to 36 or claims 49 to 54, the method further comprising a method of connecting traders to a water exchange, comprising:

2018278923 12 Dec 2018 feeding the one or more processors through a second data feed a constantly varying price condition of a second commodity and non-financial conditions of the second commodity, the non-financial conditions including conditions that describe a quantity of water constituent in the second commodity and a quantity of water used in production of the second commodity;

coupling one or more network interfaces to the one or more processors;

87. The method of claim 86, further comprising using water quality determining instruments to determine water quality of a water collateral by measuring one or more substances in the water collateral, and having the one or more processors determine a value of the water collateral from the water quality of the water collateral and from the water index.

2018278923 12 Dec 2018

88. The method of claim 86 or 87, further comprising determining the water index based on a first index value of water applied to a particular amount of water, a weight assigned to the first index value of water applied to the particular amount of water, a second index value of water applied to the particular amount of water and a weight assigned to the second index value of water applied to the particular amount of water.

89. The system of any one of claims 19 to 33 or 37 to 48 and further including a system for trading water using financial instruments, each of the financial instruments identifying a particular amount of water, the value of the financial instruments determined by an index value of the water and by the particular amount of water, comprising:

90. The system of any one of claims 19 to 33 or 37 to 48 and further including a system for trading water using financial instruments, each of the financial instruments identifying a particular amount of water, the value of the financial instruments determined by a value of the water and by the particular amount of water, comprising:

one or more processors configured to (a) determine a first index value of the water based on an updateable value of a first tradable product other than water, based on an amount of water utilized to

2018278923 12 Dec 2018 produce a quantity of the first tradable product and based on an amount of water constituent in the first tradable product, wherein the first index value of the water is determined by the processor using one or more mathematical operations to mathematically combine the value of the first tradable product, the amount of water utilized to produce the first tradable product and the amount of water constituent in the first tradable product and (b) determine a second index value of the water based on an updateable value of a second tradable product other than water, based, directly or indirectly, on an amount of water utilized to produce a quantity of the second tradable product and based on an amount of water constituent in the second tradable product;

91. An investment instrument as claimed in any one of claims 1 to 6 operable in a system according to any one of claims 19 to 33 or 37 to 48 or 55 to 64 or 71 or 72.

92. A water exchange trading platform, comprising:

one or more processors configured to access a memory storage;

one or more display devices;

at least one of a first water proportion sensor configured to sense a quantity of water constituent in a first substance and a first water production sensor configmed to sense a quantity of water used in production of the first substance;

a first data feed connected to at least one of the first water proportion sensor and the first water production sensor and configured to feed a varying parameter of the

2018278923 12 Dec 2018 first substance and to feed an output of the at least one of the first water proportion sensor and the first water production sensor;

a second water proportion sensor configured to sense a quantity of water constituent in the second substance and a second water production sensor configured to sense a quantity of water used in production of the second sensor;

a second data feed connected to at least one of the second water proportion sensor and the second water production sensor and configured to feed a varying parameter of the second substance and to feed an output of the at least one of the second water proportion sensor and the second water production sensor;

one or more network interfaces coupled with the one or more processors;

wherein the one or more processors are configured to detect differences over time in the first data feed concerning at least one of (i) the varying parameter of the first substance and (ii) at least one of the output of the first water proportion sensor and the output of the first water production sensor, wherein the one or more processors are configured to detect differences over time in the second data feed concerning at least one of (i) the varying parameter of the second substance and (ii) at least one of the output of the second water proportion sensor and the output of the second water production sensor, an application executable by the one or more processors, and configured to determine a first water index based on a mathematical combination of a varying parameter of the first substance, the at least one of the output of the first water proportion sensor and the output of the first water production sensor, such that increases in the varying parameter of the first substance and increases in outputs of the first water proportion sensor, if any, increase the first water index value, decreases in the varying parameter of the first substance and decreases in outputs of the first water proportion sensor, if any, decrease the first water index value, whereas increases in the output of the first water production sensor, if any, decrease the first water index value and decreases in the output of the first water production sensor, if

2018278923 12 Dec 2018 any, increase the first water index value, the application configured to determine a second water index based on a mathematical combination of a varying parameter of the second substance, the at least one of the output of the second water proportion sensor and the output of the second water production sensor, such that increases in the varying parameter of the second substance and increases in outputs of the second water proportion sensor, if any, increase the second water index value, decreases in the varying parameter of the second substance and decreases in outputs of the second water proportion sensor, if any, decrease the second water index value, whereas increases in the output of the second water production sensor, if any, decrease the second water index value and decreases in the output of the second water production sensor, if any, increase the second water index value, wherein the one or more processors are configured to determine and repeatedly update the first and second water index and to initiate signals to each of the one or more display devices to display an updated first and second water index whenever the one or more processors detect the differences over time in the first or second data feeds.

93. The water exchange trading platform of claim 92, further comprising water quality determining instruments for determining water quality by measuring one or more substances in a collateral comprising water, wherein the one or more processors are configured to determine a value of the collateral from the water quality of the collateral and from the first and second water index.

94. The water exchange trading platform of claim 92 or 93, wherein the first water index is also based on a reference value of water in a particular geographic locale and wherein changes in the water index are based on the detected differences from the first and second feeds.

2018278923 12 Dec 2018

95. A water exchange trading platform, comprising:

one or more display devices;

at least one of a first water proportion sensor configured to sense a quantity of water constituent in a first substance and a first water production sensor configured to sense a quantity of water used in production of the first substance;

a first data feed connected to at least one of the first water proportion sensor and the first water production sensor and configured to feed a varying parameter of the first substance and to feed an output of the at least one of the first water proportion sensor and the first water production sensor;

a second water proportion sensor configured to sense a quantity of water constituent in a second substance and a second water production sensor configured to sense a quantity of water used in production of the second substance;

a second data feed connected to the at least one of the second water proportion sensor and the first water production sensor and configured to feed a varying parameter of the second substance and to feed an output of the at least one of the second water proportion sensor and the second water production sensor;

one or more network interfaces coupled with the one or more processors, wherein the one or more processors are configured to detect differences over time in the first data feed concerning at least one of (i) the varying parameter of the first substance and (ii) the at least one of the output of the first water proportion sensor and the output of the first water production sensor, wherein the one or more processors are configured to detect differences over time in the second data feed concerning at least one of (i) the varying parameter of the

2018278923 12 Dec 2018 second substance and (ii) the at least one of the output of the second water proportion sensor and the output of the second water production sensor, an application executable by the one or more processors, execution of the application by the one or more processors configured to (a) determine a water index value based on a mathematical combination of the varying parameter of the first substance, the at least one of the output of the first water proportion sensor and the output of the first water production sensor, and based on a mathematical combination of the varying parameter of the second substance and the at least one of the output of the first water proportion sensor and the output of the first water production sensor, such that increases in the varying parameter of the first or second substance and increases in outputs of the first or second water proportion sensors increase the water index value, decreases in the varying parameter of the first or second substance and decreases in outputs of the first or second water proportion sensors decrease the water index value, whereas increases in the output of the first or second water production sensor decrease the water index value and decreases in the output of the first or second water production sensor increase the water index value, and (b) determine a water index by mathematically adjusting the reference water value based on changes in the water index value, wherein the changes in the water index value are based on the detected differences in the first and second feeds, wherein the one or more processors are configured to repeatedly update the water index, and to initiate signals to each of the one or more display devices to repeatedly display the updated water index when the one or more processors detect the differences over time in the first or second data feeds and determine a change in the water index value.

96. The water exchange trading platform of claim 95, further comprising water quality determining instruments for determining water quality by measuring

2018278923 12 Dec 2018 one or more substances in a collateral or water asset comprising water, wherein the one or more processors are configured to determine a value of the collateral from the water quality of the collateral and the water index.

97. The water exchange trading platform of any one of claims 95 or 96, wherein the water index is also based on a first index value of water applied to a particular amount of water, a weight assigned to the first index value of water applied to the particular amount of water, the second index value of water applied to the particular amount of water and a weight assigned to the second index value of water applied to the particular amount of water.

98. The water exchange trading platform of any one of claims 95 or 96 or 97, further comprising at least one sensor configured to sense a quality of water in a particular location.

99. A computer-implemented method of connecting traders to a water exchange, comprising:

2018278923 12 Dec 2018 feeding the one or more processors through a second data feed connected to the at least one the second water proportion sensor and second water production sensor a varying parameter of the second substance-and at least one of an output of the second water proportion sensor and an output of the second water production sensor;

coupling one or more network interfaces to the one or more processors;

detecting, by the one or more processors, differences over time in the first data feed concerning at least one of (i) the varying parameter of the first substance and (ii) at least one of the output of the first proportion sensor and the output of the first production sensor, detecting, by the one or more processors differences over time in the second data feed concerning at least one of (i) the varying parameter of the second substance and (ii) at least one of the output of the second proportion sensor and the output of the second production sensor, executing an application on the one or more processors to determine a first water index by mathematically combining the varying parameter of the first substance, and the at least one of the output of the first water proportion sensor and the output of the first water production sensor such that increases in the varying parameter of the first substance and increases in outputs of the first water proportion sensor increase the first water index value, decreases in the varying parameter of the first substance and decreases in outputs of the first water proportion sensor decrease the first water index value, whereas increases in the output of the first water production sensor decrease the first water index value and decreases in the output of the first water production sensor increase the first water index value;

executing the application on the one or more processors to determine a second water index by mathematically combining the varying parameter of the second substance, and the at least one of the output of the second water proportion sensor and the output of the second water production sensor such that increases in the varying parameter of the second substance and increases in outputs of the second water proportion sensor increase the second water index value, decreases in the varying

2018278923 12 Dec 2018 parameter of the second substance and decreases in outputs of the second water proportion sensor decrease the second water index value, whereas increases in the output of the second water production sensor decrease the second water index value and decreases in the output of the second water production sensor increase the second water index value, determining and constantly updating, by the one or more processors, the first index and the second water index, the one or more processors initiating signals to each of the one or more display devices to display at least one updated water index of the first water index and the second water index whenever the one or more processors detect the differences over time in the first or second data feeds.

100. The method of claim 99, further comprising using water quality appraisal instruments to determine water quality of a water collateral or water asset by measuring one or more substances in the water collateral or water asset, and having the one or more processors determine a value of the water collateral or water asset from the water quality of the water collateral or water asset and from at least one the first water index and the second water index.

101. The method of claim 99 or 100, determining a water index of the at least one water index based also on a value of water in a particular geographic location such that changes in the index value of water are based on the detected differences from the first and second feeds.

102. A computer-implemented method of connecting traders to a water exchange, comprising:

configuring one or more processors to access memory storage of a reference water

2018278923 12 Dec 2018 value that is based on a value of water in a particular locale;

using at least one of a first water proportion sensor to sense a quantity of water constituent in a first substance and a first water production sensor to sense a quantity of water used in production of the first substance;

coupling one or more network interfaces to the one or more processors;

detecting, by the one or more processors, differences over time in the first data feed concerning at least one of (i) the varying parameter of the first substance and (ii) at least one of the output of the first water proportion sensor and the output of the first water production sensor, detecting, by the one or more processors, differences over time in the second data feed concerning at least one of (i) the varying parameter of the second substance and (ii) at least one of the output of the second water proportion sensor and the output of the second water production sensor, executing an application on the one or more processors to (a) determine a water index value based on a mathematical combination of the varying parameter of the first substance, the at least one of the output of the first water

2018278923 12 Dec 2018 proportion sensor and the output of the first water production sensor, the varying parameter of the second substance and the at least one of the output of the second water proportion sensor and the output of the second water production sensor, such that increases in the varying parameter of the first or second substance and increases in outputs of the first or second water proportion sensors increase the water index value, decreases in the varying parameter of the first or second substance and decreases in outputs of the first or second water proportion sensors decrease the water index value, whereas increases in the output of the first or second water production sensor decrease the water index value and decreases in the output of the first or second water production sensor increase the water index value and (b) determine a water index by mathematically adjusting the reference water value based on changes in the water index value, wherein the changes in the water index value are based on the detected differences in the first and second feeds, the one or more processors constantly updating the water index and initiating signals to each of the one or more display devices to constantly display the updated water index when the one or more processors detect the differences over time in the first or second data feeds and determine a change in the water index value, and the one or more display devices repeatedly displaying the constantly updated water index.

103. The method of claim 102, further comprising using water quality determining instruments to determine water quality of a water collateral or water asset by measuring one or more substances in the water collateral or water asset, and having the one or more processors determine a value of the water collateral or water asset from the water quality of the water collateral or water asset and from the water index.

2018278923 12 Dec 2018

104. The method of claim 102 or 103, further comprising determining the waterindex based on a first index value of water applied to a particular amount of water, a weight assigned to the first index value of water applied to the particular amount of water, a second index value of water applied to the particular amount of water and a weight assigned to the second index value of water applied to the particular amount of water.

105. A computer-implemented method of increasing a volatility of a commodity, comprising:

using a least one of a water proportion sensor to sense a quantity of water constituent in a substance and a water production sensor to sense a quantity of water used in production of the substance;

feeding one or more processors through a data feed connected to the at least one of the water proportion sensor and water production sensor a varying parameter of the substance and at least one of an output of the water proportion sensor and an output of the water production sensor;

coupling one or more network interfaces to the one or more processors;

detecting, by the one or more processors, differences over time in the data feed concerning at least one of (i) the varying parameter of the substance and (ii) at least one of the output of the proportion sensor and the output of the production sensor, executing an application on the one or more processors to determine a water index by mathematically combining the varying parameter of the substance, and the at least one of the output of the water proportion sensor and the output of the water production sensor such that increases in the varying parameter of the substance and increases in outputs of the water proportion sensor increase the water index value, decreases in the varying parameter of the substance and decreases in outputs of the water proportion sensor decrease the water index value, whereas increases in the output of the water production sensor decrease the water index value and decreases in

2018278923 12 Dec 2018 the output of the water production sensor increase the water index value;

determining and constantly updating, by the one or more processors, the water index, the one or more processors initiating signals to each of the one or more display devices to display a updated water index whenever the one or more processors detect the differences over time in the data feed.

106. The method of claim 105, wherein the mathematical combining is performed such that the water index is proportional to the varying parameter of the substance, and is at least one of:

(i) proportional to the output of the water proportion sensor and (ii) inversely proportionate to the output of the water production sensor.

107. The method of claim 105, wherein the mathematical combining is performed such that the water index is proportional to the varying parameter of the substance and to the output of the water proportion sensor.