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SmashFi Investment Product Guidelines


Title: SmashFi Investment Product Guidelines

Common Risks

  • Exchange Risk: Any strategy active on the Exchange may face potential losses if the Exchange experiences a security breach or becomes insolvent.

  • Crypto Volatility Risk: The volatile nature of cryptocurrencies can lead to significant losses during abrupt price changes.

  • Programmatic Error Risk: Despite meticulous testing and constant monitoring, automated trading programs can still encounter
    errors that might cause financial losses.

Common Disclaimer

  • Past Performance or Backtest: Using past performance or backtest results as an indicator of future results isn't recommended. Outcomes for investments can differ, and there's no guarantee that similar results will be achieved in the future.

  • No Guarantees: Profits aren't guaranteed, and there's a potential for losses. Investments can fluctuate in value. It's crucial to
    evaluate your risk tolerance, objectives, and investment horizon before committing.

Common FAQ

  • Fees: Fees are deducted from the fund's NAV at the end of each quarter. The management fee is calculated as (fee * subscription period for the quarter) / 365. The performance fee is based on the High Watermark Return.

  • Redemptions: Redemptions can be requested anytime and might take 1-3 business days to process. While a redemption fee
    might be charged, but no fees are imposed during our initial promotional period.
  • High-Water Mark Performance Fee: It's a compensation method for investment funds. It ensures managers only collect fees
    when generating returns exceeding the fund's previous highest value. This aligns their incentives with investors.

Investment Strategies

  1. Jaguar

    • Summary: Market-neutral strategy employing quantitative analysis and algorithmic trading. It identifies top-performing
      cryptos for long positions and underperformers for short, balancing to a 1:1 ratio to reduce market risks.
    • Highlights: Factor Long-Short, Market Neutral.
    • Instrument: Binance USD-M Perpetual Swaps.
    • Max Leverage: x2.
    • Risk: Moderate – Selected factors' efficacy can differ across market conditions, impacting returns.
  2. Rhino

    • Summary: Day trading strategy that leverages cryptocurrency price trends, excelling in bullish and bearish markets but
      potentially underperforming during stagnant market phases.
    • Highlights: Momentum, Day Trading.
    • Instrument: Binance Coin-M Perpetual Swaps.
    • Max Leverage: x1.
    • Risk: Moderately High – The strategy might underperform in range-bound markets without a clear price direction.
  3. Shark

    • Summary: Options arbitrage strategy exploiting disparities between implied and statistical volatility. Profits come from the
      gap between theoretical and market prices, but losses can arise if this gap widens or due to adverse Option Greeks.
    • Highlights: Option Volatility, Statistical Arbitrage.
    • Instrument: OKX Option.
    • Risk: Moderately High – Strategy might remain dormant without statistical arbitrage opportunities, and inherent risks of
      option Greeks can lead to potential losses.
  4. Covered Call

    • Summary: Strategy to yield consistent returns by owning a cryptocurrency portfolio and simultaneously selling
      Out-of-the-Money (OTM) options on those assets.
    • Highlights: Consistent Return, Sideways & Bear market.
    • Instrument: OKX OTM Call Option.
    • Risk: Moderately Low – Potential obligation from selling covered call options can lead to missed opportunities for higher
  5. Index Products

  • AI Index

    • Summary: The AI Index is tailored to provide clients with simple and diversified exposure to the cutting-edge world of
      Artificial Intelligence. This unique fund leverages the capabilities of artificial intelligence itself to curate and maintain the AI
      index, comprising a well-balanced selection of AI-driven projects. By passively mirroring the performance of this index, the
      fund aims to offer investors a convenient way to participate in the growth potential of the AI ecosystem while minimizing the
      complexities of active management.
    • Key Point: AI Index, Emerging Tech, Buy & Hold, AI-Driven

    • Risk: Moderate

    • Sector Risk: The AI sector is rapidly evolving and can be subject to increased volatility and risks associated with swift
      technological advancements, regulatory changes, and project-specific challenges.
    • Index Composition Risk: The performance of the fund depends on the AI index's constituents and their individual
      performance. Changes in the index's composition can affect fund returns.

  • DeFi Index

    • Summary: The DeFi Index offers clients a comprehensive and diversified insight into the revolutionary world of
      Decentralized Finance. This specialized fund uses advanced algorithms to consistently update and maintain the DeFi index, ensuring a robust selection of top-performing DeFi projects. By tracking this index, investors can effortlessly tap into the
      immense potential of the DeFi landscape without the intricacies of direct investments.
    • Key Point: DeFi Index, Financial Evolution, Buy & Hold, Algorithm-Driven

    • Risk: Moderate

    • Sector Risk: The DeFi sector, while promising, carries risks stemming from regulatory uncertainties, smart contract
      vulnerabilities, and rapid market changes.
    • Index Composition Risk: The fund's performance is tied to the chosen DeFi index components. Variations in the index
      structure might influence fund outcomes.

  • NFT Index

    • Summary: The NFT Index is designed to grant investors an aggregated and diversified gateway into the vibrant world of
      Non-Fungible Tokens. With a       foundation built on dynamic algorithms, this index captures a broad spectrum of NFT
      projects ranging from art and collectibles to utility-driven assets.   Investors can benefit from the burgeoning NFT market's
      prospects without the hassle of individual asset management.
    • Key Point: NFT Index, Digital Assets, Buy & Hold, Market-Driven

    • Risk: Moderate

      • Sector Risk: The NFT space, being novel, is exposed to risks including market volatility, copyright issues, and the
        evolving nature of tokenized assets.
      • Index Composition Risk: The fund's returns are influenced by the selected NFT index members. Modifications in the
        index's makeup can sway fund results.

  • Layer 2 Index

    • Summary: The Layer 2 Index presents a streamlined and diverse avenue for investors to explore the dynamic terrain of
      Layer 2 solutions. Leveraging sophisticated algorithms, this index encompasses a strategic blend of leading Layer 2 projects that aim to solve scalability and efficiency issues on blockchain networks. By mirroring this index, investors can harness the power of Layer 2 innovations without delving deep into individual project analyses.
    • Key Point: Layer 2 Index, Scalability Solutions, Buy & Hold, Tech-Driven
    • Risk: Moderate

      • Sector Risk: The Layer 2 sector is on the frontier of blockchain technology and brings inherent risks associated with
        nascent tech, interoperability, and adoption challenges.
      • Index Composition Risk: The fund's performance is closely tied to the components of the Layer 2 index. Shifts in the
        index's framework can impact the fund's yields.

By accessing and using the investment products on Smashfi, you agree to the terms outlined in this document. Ensure you understand the associated risks and consult with financial advisors if necessary.