The idea is simple. A select group of individuals will be invited to invest in a generalized crypto market pool. This crypto market pool will be used to fund trading bots on 2 crypto trading exchanges (Coinbase & Binance) utilizing the 3commas crypto trading bot platform.
The pool will have a diversified portfolio consisting of standard Dollar Cost Averaging crypto trading bots as well as staking pools and compounding crypto trading bot pairs.
This pool is however not limited to those activities and should opportunities arise members of the pool will have voting rights to determine actions the pool will take.
Targeted Annual Profits
Although it is not entirely possible to predict the actual return the pool will produce a healthy range of expected profits would be between 60-110% annual percentage yield. The pool will target 75% or greater APY benchmarks.
What would the APY on $1,000 look like? Should the targeted APY be achieved by the pool any $1,000 capital investment would then mature to $1,750 in a year’s time.
Each member agrees to abide by the rules and regulations set forth by this document. A member is defined as any individual who invests in this program.
Current Pool Allocations
85% of all capital funds will be used for crypto trading bots
40% of these funds on average will remain in “working capital” status. This means these funds will not be allocated to the initial bot buy-in but rather remain on standby should a bot need additional capital to complete a Take Profit trade.
This is a moderately aggressive investment strategy
10% of all capital funds will be placed in crypto “Staking”
Staking is the act of holding a particular cryptocurrency that pays a “Dividend” or “Holding” reward at regular intervals. This is to ensure solvency within the pool as it provides guaranteed income. It however doesn’t guarantee final value as the values of cryptocurrencies can fluctuate regularly.
5% of all capital funds will remain as liquid capital (non-utilized funds)
Founding Member Insurance
Founding members during the first pool investment period will have their total capital investment insured for a total of no more than $500. This is insurance provided by the Pool’s administrator.
A founding member is defined as any pool member who invests in the very first investment period for the pool.
This founding member insurance will not continue after the first investment period.
Every member of the trading pool will have a proportional voting stake for the pool equal to their capital stake of said pool. Members of the pool will be required to place a non-public vote for each decision that needs to be made for the pool. An example of this could be a proposed question: Example: “Should the staking portfolio of the pool increase or decrease its value based on presented facts of upcoming market volatility or lack thereof”. Voters can choose to vote the affirmative or negative and are allowed to abstain from voting. Abstained votes are then subtracted from the vote total and the affirmative and negative votes are tallied and the decision is weighed appropriately.
Voting will typically be a rare occurrence.
Any member may propose a vote for the pool. However, each proposed vote must have a second to initiate a vote. A sufficient second is defined as any other additional member who wishes the vote to move forward.
Votes can only be limited to pool activities such as investment activities, allocations, staking activities, etc. No votes can be to grant any member any portion of the pool greater than they are already otherwise entitled to.
Pool profits will be shared with all members. A member is entitled to a share equal to their capital stake within the pool.
If there are 4 members within the pool and each member puts $100 into the pool capital fund each member would own a 25% share of the pool. This also entitles each member to 25% of the Pool’s total profit for the duration of the current pool. So if the ending capital balance of the pool is $500 each member would be entitled to a grand maximum total of their initial $100 capital investment as well as $25 of the total profits.
Pool Stake Maturation Period
The maturation period of the pool will be determined by the Pool organizing member, at this time that is Shannon Fazzini.
The Maturation Period for the Pool is defined as “The period of time the pool will be engaged in trading, staking, and other profit-generating and investment-related activities that no member of the Pool is allowed to make deposits or withdrawals to the pool’s capital funds.
Addendum: A majority vote of members can override the Maturation Period of the pool and cease all trading and investment activities. This will require a 75% vote in the affirmative to accomplish.
Votes will be made on the Pool’s trading website. The website will be created by Raging Rocket Web Design, LLC (which has no other affiliation with the Pool other than website management). Each vote will be presented with the question and the possible votes included the ability to abstain from voting. Votes will be tallied and published by the website’s administrator and made public for all pool members to review with the decided vote outcome.
Addendum: Each member is required to vote in all proposed votes. Should a member wish to abstain from voting that member must confirm they abstain from voting using the website’s voting functionality. Members who do not vote are counted in the Affirmative for every vote.
Pool Accounting Period
After each maturation period (or immediately after a successful vote to end the pool prematurely) the pool will enter an Accounting Period.
This accounting period will last no less than 24 hours and no longer than 48 hours. During this period members will have the option and opportunity to withdraw money or add money to the pool.
Additionally, the accounting numbers and profits will be published for all members to review on the pool website.
Accounting Activities Members are Allowed:
• Members are hereby allowed to perform the following actions during an accounting period:
• Member may withdraw any portion of their total capital within the pool
• Member may withdraw any portion of their total capital within the pool
Withdraw Capital and Profits
• Member may withdraw any portion of their total capital or profits within the pool
• Deposit Capital: Member may deposit any amount into the Pool Capital fund
• Rollover: Member may elect to roll over their capital and profits into the next pool
Cashout Payments Procedures
The procedure for making any withdrawal from the pool is simple. A written request for all payouts must be submitted on the pool’s website. This information is kept confidential from all members and is considered privileged information between the member and the pool’s administrator.
Cashout payments will be processed within a 24 hours period and only during a pool accounting period. Due to the nature of money transfers, the member can expect a check for the amount of the withdrawal within 1-7 business days.
Each check must be either picked up from the administrator or each check can be mailed to the requesting member free of charge.
Addendum: Members may request a crypto cashout. If a member requests a crypto cashout they must submit their request via the website and clearly state what Percentage of their cashout they’d like in crypto and in what cryptocurrency they would like their cashout to be processed. Members must also provide a working and valid Wallet Address for that crypto transfer. Warning, crypto transfers can be risky due to the nature of wallet addresses. Should a wallet address not be properly provided the crypto may become “lost” and non-recoverable.
Members may make deposits to the pool in the following ways:
Members may write a check and send to the pool administrator for processing. Checks must clear before they are invested.
Members may transfer up to $599 to the administrator electronically via the following methods:
• ACH Deposit
• Wire Transfer
Members may transfer an unlimited amount of crypto to the administrator as a capital deposit
*Please note: Crypto deposits will then become liquidated and are subject to exchange fees, crypto network fees, etc. After liquidation, the total remaining balance of the crypto liquidation will be deposited into the pool. Statements will be provided for each deposit of this nature. The pool or its administrator does not take any fee for liquidation crypto transfers.
Members may deliver cash to the administrator for deposit
The pool currently takes no fees from its members other than a single 1% maintenance fee. This fee is paid from Profits only and will only be used for the cost of the crypto bot platform (currently 3commas.com).
Example: Member “A” deposited $100 of capital into the pool. During the Pool’s accounting period Member “A” now has a total stake worth $150, $50 of which is that member’s profits. That member is now responsible for a grand total of $0.50 in maintenance fees.
Maintenance fees are automatically taken from either the next withdrawal that member initiates or it is deducted from that member’s total capital stake at the initiation of the next investing period.
Maintenance fees max out at $400/year in totality.
The pool administrator will pay any additional platform cost deficits related to the cost of the 3commas.com trading platform.
Due to the nature of crypto trading, bot losses are very uncommon. However, should the pool experience any losses each member will absorb an equal proportion of the total loss equal to their total capital share of the pool.
An example of this: 4 members have a total capital stake of $100 in the pool. This would mean the total pool initial capital stake is $400. If the ending balance of the pool is $350 each member will absorb an equal and proportionate amount of the losses totaling (for this example) $12.50 or 25% of the total losses. Each member would then be entitled to a grand total of $87.50.
Pool Accounting Period Losses
During the accounting period, there may be some bots who haven’t completed their “Take Profit” trades. This means there’s a possibility that each of those bots could potentially lose some of their capital as during the Accounting Period the bots must be liquidated. On average this wouldn’t be more than 2-3% of the total capital that the bot had access to and is considered a negligible loss. This loss would however typically be easily absorbed by the pool’s profits.
Arbitration and Deciding Votes
In the event of a dispute, the arbitrator will be the pool’s administrator. The administrator will determine the outcome of any dispute.
In the event of a hung vote (otherwise known as a tie) the member with the greatest stake in the pool will have the tiebreaker vote in either the affirmative or negative.
Every exchange charges a fee for every trade made on their exchange. This fee is automatically calculated with each trading bot and is not accounted for in the general fund. The bots calculate the trading fees automatically in their “Take Profit” calculation and as such do not impact the overall profits the bots make.
The average fee for each trade is 0.05%-0.5% of the total trade. However, this number may fluctuate with the exchange as the exchanges are entitled to make changes to their fees.
Each member is responsible for accounting for all profits on their individual taxes. Each member also agrees to hold harmless both the pool’s administration and other members from any and all personal tax liabilities for said member.
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