1. What is Index Portfolio：
Index portfolio is the portfolio for digital currency investment originally promoted by CoinMex. This product can provide the portfolio of various coins to Token Fund to issue. The normal portfolio includes many high-ranking coins in terms of market capitalization and a small number of potential coins. It also allocates the coins weight according to their history performance and therefore effectively secures the stable benefits of assets.
2. What is the advantage of Index Portfolio? Which portfolio should I buy?
The digital currency market is in the state of continuous trading 7*24 in 365 days without any price limit. One single coin investment may have enormous risks out of dramatic price fluctuations. Portfolio will allocate the potential quality coins to further reduce the investment cost and withstand the risks coming from the price fluctuations caused by the single coin investment, thus helping investors to gain a stable income.
If you are a beginner in blockchain investment and want to allocate your assets in a more stable way or don’t want to take high risks, you can choose the portfolio including mainstream coins, such as BTC/ETH/BCH etc. (Please refer to CoinMex Standard Rating: Moderate Portfolio)
If you are an experienced investor in the blockchain and expect the investment of high risks and benefits, you can choose the portfolio including more small coins. (Please refer to CoinMex Standard Rating: Aggressive Portfolio)
3. How we select component coins in the portfolio?
1）Selected coins must be actively traded and listed in at least three exchange platforms;
2）Selected coins had not been manipulated by the market and had no obvious abnormal fluctuations in the history;
3）Selected coins should be greatly decentralized and couldn’t be held by any individual or organization with more than 50%;
4）Selected coins can’t be categorized as securities token by the major national regulatory departments; The projects judged as improper ones by the Index Review and Adjudication Commission will be eliminated.
5）Selected coins must meet at least one out of the following conditions: Top 50 coins in CoinmarketCap, Circulating market capitalization ≥ 100 million yuan and the daily trading volume on all platforms in recent 7 days ≥ 5 million yuan, The daily trading volume of trading pairs in CoinMex within recent 1 month ≥ 1million yuan.
4. How to calculate Portfolio price
1）The release of each portfolio will set a beginning time when the corresponding index points of this portfolio is 1000 (4 digits after the decimal point) and the original net value is 1 USDT which is also the original price of the portfolio.
2）When initializing, the portfolio will calculate or appoint the weight of every coin.
3）Based on the weight of every coin, the system will calculate the amount of every coin in the portfolio: Amount of A coin = 1 USDT*A coin weight/Original index price of A coin
4）Real-time calculated net value = Amount of A coin*Real-time index price of A coin+…+Amount of N coin*Real-time index price of N coin
5. Portfolio Mixed Index
Every index portfolio has a corresponding portfolio mixed index, whose initial points is 1000. This mixed index will always keep a corresponding relation of 1000 points = 1 USDT with the index portfolio.
CoinMex, with the purpose of guaranteeing the net value fairness of index portfolio, will specially grab the data of Top 20 global exchange platforms to calculate the real-time price index of the single coin. On the basis of this, the mixed index will be further calculated according to the weight of various component coins.
6. How to confirm the weight of component coins
The weight of component coins of the index portfolio in CoinMex is decided comprehensively by the following factors: the percentage of circulating market capitalization, the daily turnover ratio of the recent one quarter, the price change in the recent one quarter and the manually adjusted index of Index Commission.
7. Index rebalance and Smart position adjustment
To ensure a more effective tracker index and stable income for Index Portfolio, CoinMex will conduct an index rebalance every quarter and adjust the weight of index components.
Accordingly, when the index is rebalanced, the corresponding index portfolio will automatically adjust positions smartly, thus tracking the index and making it consistent with the portfolio.
8. Portfolio investment risk disclosure letter
I. Portfolio is an investment method whose major function is to diversify the investment risk of single target. Differing from the bank saving and securities with a stable yield rate, the portfolio investment generates uncertain return according to the market preformance.
II. The risks of portfolio investment may include:
2.product management risk
4.compliance risk of portfolio itself.
III. CoinMex promises to manage the portfolio assets based on the principle of honesty and due diligence, but won't guarantee the certainty or extent of investment profit. Investors should keep in mind the “caveat emptor” principle and voluntarily take the possible risks out of portfolio management or the investment risks caused by NAV (Net Asset Value) changes.