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
Coinrate Team
01
Since 2009
We have been operating in the market since 2009, providing reliable and experienced services to our clients
03
Proven Results
Our work has resulted in an average increase of over 30% in our clients' market capitalization, showcasing our ability to deliver tangible results
02
Seasoned Trading Desk Team
Our team comprises over 10 professional trading desk staff, each with a minimum of 11 years of experience, ensuring expert guidance and execution for our clients
04
Institutional Investment Attraction
Our comprehensive MM services have helped our clients secure over +$55m in institutional investments, further establishing our track record in facilitating
Sergey Smotrov
22 years of experience in Brokerage, Market Making, Hedge Funds, Speculative Trading, Asset Management