Could someone clarify the end-game plan. I expect over time that the exchange will get more efficient with their prices and other arbitragers will have come in to make the exchange markets more efficient, and the returns may no longer look as good as it is currently. At that point how do we get the capital back? Will the trading positions be liquidated and distributed to shareholders prorata?
Dear tricomp, thanks for your questions,
There was investors asked us about the end-game plan, the reply as follow:
I'm just wondering if there is any sort of buyback garuntee being offered by you guys similar to what BAF offered a few weeks back? What if the political climate or something else outside your control ultimately ends up shutting the fund down? Are we basically completely out of luck?
respectfully,
-nwfella
Thank you for the concern about our fund.
Before fund issues, we considered that if there are the following situations, we need to buyback the fund:
1.Subscription rate below 10%. (At present has reached 60%)
2.The Chinese government does not allow our offshore company business for BTC trading.(This is the largest unknow in furture, but we can see that the Chinese government just try to do the BTC regulation, not prohibit it entirely. And the fund was issued by our offshore company is also for the sake of avoid the political risk)
3.Our parent company went bankrupt.(Due to our parent company is a technical corporation, the BTC business is not the main business and it is operationg very well, therefore the possibility of this is very low)
In a word, if it is the reason for us fails to fulfill the promise, we will inform all investors ahead of the time, buyback fund to ensure the interest for all people.
Please trust us, before the hedging fund issues, through enough professional market investigation and analysis, we think this business is low risk and stable return, and we have already put great resource in that.
And the long term goal for us is not just one fund management, it is the whole BTC investment market.
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Best regards and thanks for your support!
BtcAutoTrader Team
In addition, we think that the arbitrage opportunity will alway exsit, just more or less.
Actually that the arbitrage trading is not running in all the time everyday, according to observation,there are about 20 to 22 hours every day we cannot arbitrage, because the price differential is not enough for hedging in the period time,but the advantage of us is the BtcAutoTrader could be running 24 hours a day, it can make us take any chance for hedging, this is how we make the profits.
In fact, there are many manual arbitrage retail investors in the market, we call them "move brick worker" in China, because the money we invested is not enough to cover all arbitrage opportunities in the market, in the meantime, these "move brick worker" take the rest of opportunities.
We believe that with the passage of time, if the money we invested is enough, and more liquid, we will grap more opportunities, and the retail investors will gradually lose opportunity to withdraw from competition, in the meanwhile, we will make more profits.
Best regards
BtcAutoTrader Team
