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Myfo CRYPTO developed a proprietary algorithm that enables detection and seamless execution of arbitrage transactions in the cryptocurrencies derivative markets. Our algorithm constantly looks for low-risk investment and arbitrage opportunities, all relying on derivatives. This search takes in consideration: your USDT available, the exchanges you've added on the platform, and leverage.
For each trade proposed, the algorithm compute the optimal amount to invest, how much leverage to take, how to prevent liquidation by a high margin call, how to pass the orders and how to unwind the trade. All that in a second.
Upon detection of a potential arbitrage, expected return is calculated and an optimal level of leverage is computed taking into account the amount of liquidity buffer the investors need to keep at hand to face future margin calls in case of high volatility and market moves. At trade maturity, the unwind of the strategy is also handled by Myfo CRYPTO algorithm, minimising execution risks and slippage.
When the arbitrage is done and the trade is settled, myfo CRYPO will charge 20% of the performance generated for using the service, depending on the return but only if there is a positive one.
myfo CRYPO never suggests a trade higher than 20% of the availability for a specific exchange to help you diversify your trades.
While we look for hedged positions, an investment is never risk-free and presents a high-risk of losing all the capital invested. Doing for instance 5 trades instead of 1 is statically a good way to reduce the risk by diversifying it.
To improve the return for a specific risk, myfo CRYPO suggests trades that involve leverage. Leveraging means borrowing a specific asset, which involves a higher risk and a potential higher return. This creates potential margin calls and a liquidation risk in a volatile market.
To prevent those risks, myfo CRYPO includes in its strategy to keep a precise percentage of the trade in spot when a trade is done to face any margin call. This percentage has been backtested to make sure it covers a high movement in the market. With the auto top-up features activated on the different exchanges, you are sure not to be liquidated. And what if I am liquidated (if the top-up feature is not activated or the market volatility is too important)? Our hedging strategy will stop the trade to limit the potential downside.
When it comes to earning a double-digit return in the crypto world with a limited risk, people generally think about staking. Staking is the process of providing liquidity for one crypto and earning some of the transaction fees coming from the trading on the protocol hosting this crypto. Staking can be very attractive with yields between 10-100%. But there are two main risks when staking: the token you hold can drop in value, and you are exposed to impermanent losses (https://academy.binance.com/en/articles/impermanent-loss-explained). Other known protocols (think of Anchor Protocol) offer double digit returns on stablecoins. The issue with these protocols is they offer very attractive yields to lure investors, but the yields will have to fail quickly as the revenues of the protocol (coming from lending stablecoins) are hugely lower than the protocol liabilities. We think that some of them could be considered as ponzis.
Our strategy has been live for only a few months now. Generally, most investment strategies need several years to demonstrate that they generate positive returns before attracting investors. We can’t do this: in several years, the opportunity will be gone. We also have one main difference: when we trade, the expected P&L of our trade is already known, and don’t trade obviously when it’s negative. We also expect the yield on this specific strategy to decrease over time, given that inefficiencies in the crypto market will be fixed as more and more investors join the ecosystem.
There are no risk free investment opportunities.You invest at your own risk. You should seek advice from a professional before doing any trade and you should never invest more than you can afford to lose as there is a high risk of losing all your capital.
We bring years of finance expertise to suggest hedged investment opportunities that protects your downside with derivatives without being impacted by the moves of the underlying. But nothing is sure and you are fully responsible for any possible outcomes.
You can’t be hacked from crypto.myfo.fr because we don’t own your money, we just trade on your behalf by API. Your account might be hacked on the exchange, but we do our best to work with the largest crypto exchanges in the world where security is at the utmost level.
The custodian of your money is the exchange. For now we work with two of the largest crypto exchanges in the world, Binance and Delta Exchange, these exchange are well capitalized, they don’t have any systemic exposures similar to what a bank will do (they don’t lend their own capital to their customers) so risks of bankruptcies of the exchanges are very limited.
Over a certain period of time (at least a year), the directional risks are very limited (the risks of losing due to the volatility of the crypto market). We actively monitor and tackle any operational risks that could arise (liquidity risks, bad execution, exchange risks..). We also invest our own money alongside our clients on exactly the same strategy.
In order to trade, you'll need to have already bought some crypto. We work with Tether (USDT) which is a dollar stablecoin (cryptocurrency that attempts to peg their market value to the dollar).
To buy some, you'll need a broker. We strongly recommend Binance as it works both as a Broker and Exchange. To create your account on Binance please go here: create your account. Other solutions, including Coinbase (here) and other actors work. The idea is to buy any cryptocurrency and convert it to Tether (USDT). You will then be able to send it to your exchange. Please contact us if you need any assistance in the process.