Risk management by investopedia occurs anytime an investor or fund manager analyzes and attempts to quantify the potential for losses in an investment., while Risk management can also be the identification, evaluation, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability or impact ... Wikipedia
Digital Coin Trade®™ defines risk management in crypto investment has a way to minimize the loses caused by market volatiltiy and deflation of the fait values associated to the crypto asset.
We have designed 4 major risk management system for crypto investors that are interested in growing their digital assets with us. These investment risk tools are put in place to protect both investors and also the platform from sudden market crash at a minimal impact.
Four Digital Coin Trade®™ Investment Risk Management Features
1.) Investment Limits: For all investment plan on the platform you are only allowed to run plans simultaneously, this is to reduce the issue of major loss of investment capital during a major market crash, it also protect the platform from overhead expenses of sorting funds for trading after a crash in the market.
2.) Deposit Limit: We have this based on our KYC & AML policies which are aligned with our credit card payment gateway facilitators, and to prevent money laundry activities, any account marked with reaching the deposit limit are required to provide further identification information and documents before they can access their accounts fully. This is to protect the platform and other members of the platform from financial issues punning from financial authorities.
Furthermore the deposit limits are also put in place to restrict account users from depositing more than they can risk individually, so as to limit any unforeseen potential loss in funds/capital.
3.) Withdrawal Limit: This is also place in line with our KYC & AML policies and since the funds (capital and interest) are withdrawn in a currency swap investment tool, feature on the platform based currency equivalent of the local currency being withdrawn in Fait, or current rate of based currency to crypto currency, investors tend to gain a stable conversion rate in most cases where the market itself is under performing.
4.) 15% Investment Fall: This is a critical risk management tool we activate when the total market falls below 15% or falls to accumulate 15% drop in a continuous manner, in such cases we will have to reverse the interest generated by the platform, as the actual funds left during the depleting value falls are not reflected on the platform, so we intend to apply two options,
a.) First option is suitable in a case scenario where the funds are already due for their first 30 working days cycle, we simply terminate the 2nd cycle and release both earnings and capital in full by liquidating the funds on time, we may decide other wise if the fall is critical and apply our 15% fall to the withdrawal fee during the withdrawal process.
b.) Second option is if the investment fund is in compounding, such funds will have our 15% fall added to withdrawal fee during the withdrawal process, in most cases the investors either don't lose much or equivalently gains back their investment capital.
These is our we try to protect our investors from losing much of their funds in the crypto market and also we provide a risk warning statement which is found on our login page and other pages of the site during registration process to get investors attention that their might be cases where their funds can actually be lose!