Market Neutral Strategy B1

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 %

Hurdle rate

3 %

Lock-Up

3 months

Withdrawal Notice

1 month

Entry threshold

$100 K

B1 Investment Product: APY Review

Track Record

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

Perpetual futures

Futures that do not have an expiration date

Financing rate

The rate paid by perpetual holders futures to holders of the opposite position depending on the sign of the bet

Losses

Maximum possible losses according to the strategy

Stress scenario

The probability of losses is associated with extreme factors such as the closure of one of the exchanges

How We Avoid Risks

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

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

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

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

Other Strategies

Investments in BTC or ETH with Full Protection of Initial Capital

Strategy S1

Highly diversified crypto portfolio

Strategy A1

Coinrate Team

Since 2009

We have been operating in the market since 2009, providing reliable and experienced services to our clients

Transparency & Trust

We prioritize transparency by providing regular reports and maintaining open communication, ensuring you are always informed about your investments

Individual Approach

In addition to time-tested strategies, we create personalized asset management plans tailored to your goals and risk tolerance

Innovative Technologies

By utilizing advanced algorithms and cutting-edge technologies, we continuously enhance our investment strategies to deliver stable results even in highly volatile markets

Sergey Smotrov

22 years of experience in Brokerage, Market Making, Hedge Funds, Speculative Trading, Asset Management

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