Arbitrage & MM Strategies

Market Making & Arbitrage Strategies are part of the KRYPTEROS Active Management Solution

How does the Strategy work ?

The Market Making & Arbitrage Strategies take advantage of price discrepancies between crypto assets exchanges. The algorithm following the strategy tries constantly to sell higher than it buys. Profits are directly reinvested. Each strategy deals with a specific pair. Examples: RVN/BTC Arbitrage & MM Strategy, ETH/BTC Arbitrage & MM Strategy etc.

What return can one expect ?

Since this strategy is based on Arbitrage and Market Making, it is delivering relatively stable trading results. The annual return will depend on the volatility of the pair traded, the price change of the pair versus BTC or versus USD depending on your currency of reference. Our algorithm objective is to maximize the return in BTC.
Each strategy's return in BTC will be publicly available on our site

What are the risks ?

There are some risks involved with this strategy:
  • The user is exposed to price changes of the pair that is traded by the strategy. Indeed while users must deposit funds in a Reference Asset specific to each Strategy, the Strategy has to buy the pair to which it is dedicated to be able to work. Thus the user will exposed to the price change of each one of the coins included in the pair. For example, if a user chooses to invest in an Arbitrage & MM strategy involving Bitcoin and RavenCoin, his return in BTC will depend in part on the price change of RVN versus BTC as some of the strategy holdings have to be in RavenCoin. The return in USD will depend both on BTC and RVN price change during the period
  • The crypto assets are stored on exchanges that can be hacked or could malfunction. In the case of hacking or malfunctionning of the exchanges involved in the strategy, the user may not deem KRYPTEROS liable as stated in the Terms of Use. These risks are part of the Strategy's risks and shall be born by the user.

What strategy to choose ?

The user should opt for a strategy according to his/her own risk aversion and investment goals. KRYPTEROS will provide a graduated risk scale to enable users to gauge the riskiness of a strategy. For example, investing in an Arbitrage & MM strategy involving ETH/BTC can be deemed less risky than investing in a RVN/BTC strategy.

How can I invest ?

The user has to go through a number of necessary steps before investing in a strategy:
  • Register for a KRYPTEROS account and agreeing to the Terms of Use and the Privacy Policy
  • Go through an identity verification process in accordance with our Anti-Money Laundering Policy
  • Choose a strategy that suits your investment goals and objectives
  • Deposit funds in the base currency associated with the strategy
  • Commit funds to a strategy. Commited funds cannot be withdrawn until they are uncommited.

When can I uncommit funds from a strategy and withdraw ?

Uncomitments from a strategy will be possible once a month, the date of the month depending on each strategy. Uncommited funds can be withdrawn at any time.