What You Have to Know about RIALTO.AI Platform?RIALTO.AI Platform launch is around the corner, and therefore we have decided to collect questions which have appeared since the last post about the introduction to the platform. In order to shed light on the functionality, we made a selection of the most common ones with the corresponding answers.
1.What happens in case the algorithm used generates loss? Is the loss deducted from the profit of the previous periods? What if the profit of previous periods is 0 and the algorithm generates loss?
By using the algorithm, every user bears the risk of non profitable trading as well as the benefit of the profitable trading. If the cumulative profit within the trading period is positive, the user’s profit is added to his wallet and he is able to withdraw the assets. If the cumulative trading result is negative, the deposited balance of user’s XRL tokens decreases for the amount of the loss produced.
2.It was said that if platform loses funds, 1 XRL will be burned/lost /frozen for $0.13c loss. But what if the token price in the far future is $100 and I make a loss of $10. Will my whole token be burned or 0.1 XRL?
If the cumulative trading result is negative, the balance of user’s XRL tokens is decreased only for the amount of loss. It is always calculated based on the actual value of the token which is tied to the Total Assets value. Total Assets include all the cryptocurrencies that are managed by the users through the platform.
3.What happens with the distribution of the profit generated since the beginning of the trading (October 1st, 2017)? Will the US citizens be eligible for the payout of this profit? When will the distribution of this profit take place?
Profit generated since the beginning of the trading has been made by using the proportional amount of RIALTO.AI assets and has been added to the Total Assets, therefore the profit increased the value of the each user’s wallet, proportionally according to his amount of XRL. The USA is currently outside our area of operation, therefore US citizens are not able to use the platform features which include profit withdrawal.
4.Why did RIALTO.AI decide to build a platform instead of holding on to the initial idea of quarterly profit distribution on the Ethereum blockchain?
RIALTO.AI is following its initially outlined long-term development plan by establishing a platform where users will be able to access all the future products and services offered by the RIALTO.AI. Currently, those represent trading algorithms, while data tools and other features are expected to be introduced later in 2018. RIALTO.AI platform is required to comply with local legislation which does not allow for anonymous periodical profit payouts.
5.What options are there on the platform to choose from: AI trade bot, arbitrage and market-making bot? What will be the others?
With the platform launch, registered users will have an access to the arbitrage and market-making algorithm. AI trading bot will not yet be available at the initial stage as it is still in testing phase that will continue to run until the end of Q1 2018 in order to meet the statistical significance parameters required for the deployment phase. We will be constantly implementing further improvements and introducing additional features in later stages.
6.Will platform have an automatic option? My suggestion is you can get parameters from active users that perform well and average from those parameters. The assumption here is that active users will trade in their best interest.
Initially, users will be able to control only the arbitrage and market making algorithm. Default settings will be set to OFF, and therefore market exposure will be set to 0%. Later on, as new algorithms shall be introduced, platform users will be able to select individual preferences for trading algorithms. Suggested settings will be indicated on the platform which will allow for effortless and efficient usage of the platform for the most passive users.
7.Will the platform have a compounding feature? As in, profit gets converted to XRL, for example profits off every month buy XRL, so no ETH payout would happen.
A compounding feature is not included in the Q1 2018. Nevertheless, we will be implementing further improvements and introducing additional features in later stages.
8.Regarding KYC, will you be publishing any info related to personal information, and/or tax reporting that will be done by RIALTO.AI? Will you be reporting personal information and earnings of registered holders for tax purposes?
RIALTO.AI will not publish or anyhow distribute personal information to third parties. We will not issue tax reports on behalf of the users. Gathered information will be used solely for internal KYC and AML processes. Information is stored by using services of Contego Fraud Solutions Ltd and processed in line with the RIALTO.AI Privacy Policy that will be publicly accessible.
9.The Medium blog post writes about temporary lock-up of the XRL tokens after the withdrawal. Please elaborate, especially in context of the second bullet point question.
Once a user decides to withdraw his cryptocurrencies from the platform, he is required to leave the XRL tokens at the platform. Those tokens are not added to the circulating supply as they would devalue other tokens but will be either burned or made available for purchase on the platform in later platform updates (Q2 2018). This will enable the new user to deposit the same amount of cryptocurrencies per XRL tokens and use the algorithms further without influencing the original supply and token value.
10.How will XRL token holders benefit from other partnerships like they did with Hedge Project, if they’re only eligible to retrieve profits from the bots?
Any potential revenue from other services will prolong the ability to finance the platform maintenance, development, and running costs of business operations without charging any fees. We do not expect for other revenues to exceed 3% of trading return in 2018.
In the events of larger partnerships — like it was the case with Hedge, we will seek similar compensation that includes distribution of the value to all existing token holders.
https://medium.com/@RialtoAI/what-you-have-to-know-about-rialto-ai-platform-17ef9feec0fa
