Dear Fortuna supporters,
Please find the weekly edition of Fortuna News below! As always, thank you for being a great community, and enjoy the read!
In an exclusive interview with Mars Finance on 7th September, Fortuna Founder & CEO Brian Cai detailed the advantages of FOTA.com’s STAMP (System for Theoretical Analysis and Margining Portfolio) Margin/Clearing System. Today, we’d like to share it with the community.
“In our system, we calculate all risk parameters and margin requirements for the user’s overall portfolio, taking into account the correlations between different asset classes the user’s position level and the market conditions. Users can maximize the use of margin, because as long as the overall margin meets the demand, even if the loss of a single futures contract is large, it will not cause the overall blow-up.”
We have absolute confidence in our margin risk control system. So here comes the question you want to be answered. What are the benefits for users?
First, the overall risk of blow-up is significantly reduced. The contract is separated from the calculation, for example, one contract makes money, another loses money, and the losing contract still faces a large risk of blow-up. However, if all the contracts are connected, corresponding to a unified margin account and the correlation between different asset classes and the market conditions are considered, the probability of the user’s overall portfolio blow-up can be significantly reduced.
Second, the use of margin is maximized. There is a correlation between different asset classes, and diversified investment itself is the most effective scientific risk management tool. These things can reduce the user’s margin usage through risk measurement to release it for new contract transactions and maximize the use of margin. Two things, controlling the risk of user’s blow-up and increasing the utilization of margins, seem contradictory, but can be achieved through a more professional system like STAMP Margin/Clearing System.
Third, the risk of the blow-up is minimized. “Assuming that a user’s contract blows up, most derivatives exchanges will force liquidation letting nothing left, and the user’s funds will all be lost. However, at FOTA.com, we implement a professional margining portfolio system, and we will adopt a gradual liquidation mechanism first to cancel the pending orders that are not favorable to the users, and then gradually close the contracts with the most losses until the overall current margin rate meets the max-margin requirement rate .
”Last, both realized profit and floating profit can be withdrawn at any time. At present, none of the mainstream digital asset derivatives exchanges can support the floating profit withdrawal at any time, which is a risk for both platforms and traders. Furthermore, to prevent the blow-up, some exchanges force the retention of the user’s closed position, and the user is not allowed to withdraw the proceeds before the contract delivery date, and the user will share the loss of the platform in case the blow-up happens on the delivery date. The so-called blow-up is that the margin control work is not in place, and the funds resulting from the contract for the forced liquidation loss are still insufficient to pay the counterparty’s trading profit.FOTA.com is the first step as well as the core business of Fortuna. At present, in the field of digital assets, no exchange can provide a margin risk control system like Fortuna.Why is Fortuna able to do so? Well, the core team members come from prestigious financial institutions, such as the core development team hailing from the Options Clearing Corporation (OCC) and the derivatives director from Credit Suisse and so forth.
Visual Fortuna Recap
Technology Research and Development
FOTA
Continued FOTA system optimization and new demand development during the National holidays;
The first round of tests and bug fixes of the APP are basically completed, and regression testing will begin next week;
Comprehensively sort out the next product demand and product rhythm, and further clarify the next key work and direction.
Quantitative modeling
- Improve trading platform functions, expand deep market conditions, and support multi-exchange channel orders;
- Implement a quantitative depth strategy;
- Start optimizing multiple quantization strategy parameters.
Marketing and PR
- Daily maintenance of Chinese, English, Russian and Korean communities;
- Daily content updates of official media accounts at home and abroad;
- User work orders at home and abroad are sorted back.
Customer Service
- Prepared customer service materials and FAQ.
- Record the valuable feedback.
- Replied to the users’ tickets.
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