Market neutral strategy B1
Investments in cryptocurrencies with a target return of 25%+ in USDT regardless of market dynamics
Risk rating: 1 (low)
Term sheet
Target return
25% + APY  in USDT
Investment instruments
Digital currency
Capitalization more than $100 mln
Average volume 24h more than $10 mln
Risk profile
No leverage
Capacity strategy $100 mln (liquidity capacity)
No drawdown
Strategy specification
Delta Neutral
Exposition via Derivative products
Investment horizon is unlimited for each asset group
The resulting free funds are reinvested with floating rate
The performance of strategy is related to the efficiency and trade volume on Centralised Exchange
Class and type
Delta Neutral (B1)
Investors
Private and institutional
Classification
Market neutral strategy
Exchanges
Binance, ByBit, KuCoin, OKX
Success fee based on High Water Mark
20 %
Management fee
3 %
Hardle rate
3 %
Lock-Up
3 months
Withdrawal Notice
1 month
Entry threshold
$100 K
B1 Investment Product: APY Review
2024
Track Record 2024
Growth in portfolio value
Historical profitability
The principle of operation of the strategy is based on the arbitration of perpetual futures for crypto currency on centralized crypto exchanges
Profit is earned due to the difference in the value and rates of perpetual futures
The Profitability of the Strategy in Different Scenarios
Positive scenario
+ 14.8 %
After 180 days
+ 30 %
After 365 days
Negative scenario
+ 7.2 %
After 180 days
+ 14.5 %
After 365 days
Neutral scenario
+ 11 %
After 180 days
+ 22.3 %
After 365 days
Stress scenario
+ 0 %
After 180 days
+ 0 %
After 365 days
Glossary
01
Perpetual futures
Futures that do not have an expiration date
03
Financing rate
The rate paid by perpetual holders futures to holders of the opposite position depending on the sign of the bet
02
Losses
Maximum possible losses according to the strategy
04
Stress scenario
The probability of losses is associated with extreme factors such as the closure of one of the exchanges
How We Avoid Risks
01
Market Risk
The probability of making a loss on a trading strategy due to changes in exchange rates
Probability of loss is equal to zero due to continuous holding two opposite position in assets, so risk is fully hedged
02
Credit Risk
The probability of incurring losses due to the realization of the exchange's credit risk
The risk is diversified with usage several crypto exchanges: ByBit, OKX, KuCoin, Binance
03
Cyber ​​Risk
The probability of incurring losses due to hacking of the exchange by a hacker group and subsequent theft of funds
Risk is mitigated by using a number of exchanges with several subaccounts and adhering to all cybersecurity rules
04
Interest Rate Risk
The probability of incurring losses due to unfavorable funding rates or increased commission costs
The strategy avoids situations of negative interest rates
The Methodology for Calculating the Risk Rating