⚪CDF: Cindex Dynamic Secure Growth Fund
Product Information
Name: Cindex Dynamic Secure Growth Fund
Symble: CDF
Objective:
The " Cindex Dynamic Secure Growth Fund" stands as a pioneering force in the world of cryptocurrency investments. As the first-ever fully decentralized passive management ETF, its primary objective is to provide investors with exposure to a carefully curated portfolio of cryptocurrencies while prioritizing both security and long-term growth.
Asset Composition:
In order to minimize Nonsystematic Risk to the greatest extent possible, the virtual assets selected for "Dynamic Secure Growth Fund" are included in a minimum of two acceptable indices issued by at least two different index providers. These two index providers are distinct and independent from each other, as well as from the issuer of the virtual asset and the Platform Operator. Additionally, it is ensured that at least one of the indices is issued by an index provider that adheres to the IOSCO Principles for Financial Benchmarks and possesses experience in publishing indices for the traditional securities market.
Simultaneously, a screening process is applied to tokens that meet the aforementioned criteria based on fundamentals, utility within the blockchain ecosystem, and potential for future growth.
Ultimately, based on these criteria, Cindex have chosen five cryptocurrencies, namely Ethereum (ETH), Aave (AAVE), Chainlink (LINK), Polygon (MATIC), and Uniswap (UNI).
Investment Strategy:
Cindex's passive investment strategy is fully automated and executed through smart contracts. This approach minimizes human intervention, reducing the potential for errors and biases while maintaining a strong focus on risk-adjusted returns.
Rebalancing Schedule: Portfolio adjustments are made on a quarterly basis.
Rebalancing Range: The maximum allowable portfolio adjustment for a single cryptocurrency within each quarter is ±10%.
Reference Variables: The reference factors considered for rebalancing include trading volume, trading volume growth rate, and price fluctuations.
CDF Backtesting:
Cindex's CDF (Cindex Dynamic Secure Growth Fund) has demonstrated significant advantages in a three-year investment backtesting period, outperforming ETH and BTC by a considerable margin.
During this three-year backtesting period, CDF achieved an Annual Percentage Rate (APR) of 269.27%, far surpassing ETH and BTC, which yielded 124.04% and 48.31%, respectively. This signifies that CDF delivers higher returns, allowing investors to generate more substantial gains within the same timeframe.
In terms of the portfolio's Sharpe Ratio, CDF also excels with a ratio of 1.23, whereas ETH and BTC scored 1.04 and 0.79, respectively. This implies that CDF not only provides superior returns but does so at a lower level of risk, enabling investors to achieve higher returns per unit of risk.
The line chart depicts the Net Asset Value (NAV) of CDF , ETH, and BTC from October 2020 to the present.
In the chart , it is evident that CDF, ETH, and BTC all experienced significant net asset value growth from October 5, 2020, to December 31, 2021, spanning an entire bull market cycle. However, what sets CDF apart is its outstanding performance during this upward market trend.
Specifically, CDF achieved a remarkable Max Return of 2999.26% and an impressive annual percentage rate (APR) of 1987.36%. In contrast, ETH recorded a Max Return of 1264.83% with an APR of 768.14%, while BTC had a Max Return of 533.27% and an APR of 275.70%. These figures clearly demonstrate that CDF outperformed both BTC and ETH significantly during the bullish market cycle.
During periods of market upswings, CDF has demonstrated an exceptional ability to not only keep pace but significantly outperform BTC and ETH. This means that when the investors invest in CDF, you can expect to reap substantial rewards during market rallies.
What truly sets CDF apart is its remarkable resilience during market downturns. Even in the midst of broader market declines, CDF consistently maintains a significantly higher Net Asset Value (NAV) compared to its peers. With a Max Return of 91.72% and an annual percentage rate (APR) of 31.30%, CDF outperforms other prominent assets like Ethereum (ETH), with a Max Return of 74.97% and an APR of 28.16%, as well as Bitcoin (BTC), which has a Max Return of 41.74% and an APR of 12.95%.
This outstanding performance also positions CDF as the premier choice for risk-averse investors seeking to prioritize stability and capital preservation in their investment approach.
Security Measures:
Decentralization is at the core of Cindex security model. By leveraging blockchain technology, Cindex eliminate central points of failure and enhance the security of investments. Cindex's security measures include fully decentralized asset management, regular security audits, and community-driven security protocols.
Risk Management:
The cryptocurrency market is known for its high volatility. Consequently, Cindex has implemented rigorous screening criteria, which take into account factors such as trading volume, price volatility, utility within the blockchain ecosystem, and potential for future growth.
Moreover, all the cryptocurrencies included in Cindex's portfolio adhere to the regulatory standards established by the Hong Kong Securities and Futures Commission.
In order to mitigate risks, the community actively participates in governance decisions and employs various risk management strategies, including automated smart contract triggers and decentralized governance voting.
Transparency and Reporting:
Decentralization fosters transparency. All fund-related activities, including performance, asset allocation, and governance decisions, are recorded on the blockchain and can be accessed by all investors.
Liquidity Options:
Cindex understands that investors may have different time horizons and liquidity needs. The "Dynamic Secure Growth Fund" offers options for both primary market and secondary market investors, allowing them to tailor their investments to their specific goals through decentralized liquidity pools. Additionally, Cindex plans to open the perpetual option in the near future.
Management Team:
Cindex asset management committee decentralized management is carried out through community governance and smart contracts. Token holders have a say in fund decisions, ensuring collective management and oversight.
Invest with Confidence:
By choosing the "Dynamic Secure Growth Fund," investors are entering the realm of fully decentralized passive management. Embrace the future of finance with a well-balanced investment opportunity in the cryptocurrency market, backed by a commitment to security, growth, and decentralized decision-making.
Disclaimer:
Investing in cryptocurrencies and decentralized assets involves risks, and past performance is not indicative of future results. Please carefully consider your risk tolerance and investment objectives before participating in the "Dynamic Secure Growth Fund."
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