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Diversify your portfolio across KEI finance automated trading strategies |
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Automated trading strategies are the primary tool used by the KEI finance platform to automatically grow a users investment. Users can enter trading strategies via the KEI finance four step automatic investment flow
- Select tokens to accumulate (BTC, ETH, DAI + 200 more)
- Input the $ value you wish to invest ($1000)
- Set the duration for your trade (By month or indefinite)
- Set the profit or stop loss (hit $1500 sell, fall to $700 sell)
The KEI finance protocol will then diversify your investment across the necessary strategies to automatically accumulate the crypto assets the user selected.
KEI finance strategies are varied depending on the outcome required by the user. Initially KEI finance will offer KEI protocol backed strategies or user customised trading strategies.
Strategies include algorithms that automatically accumulate desired tokens or external staking on partner sites managed by KEI algorithms.
For new users entering the space for the first time, KEI finance offers protocol backed strategies. These are strategies that are set by the protocol and tested internally at KEI finance. Initial strategies will be released upon TGE and producut launch in February.
Strategies refer to algorithms that read chart patterns and market conditions in order to buy and sell assets at the most strategic moments creating an ongoing accrual of value of a defined base asset.
For experienced users, they may set their own customised strategies on KEI that can be used by other traders. In doing so the user will select their tokens for trading, the duration and trading strategy or algorithm used.
Users who create strategies on KEI finance are incetivesed by being able to select a portion of their trading pool that is their profit. Where if a user was to use a strategy individually they would get only the profit on the value they accrue. By creating community pools on KEI finance, a creator can opt for a greater and customised profit share.
The primary purpose of KEI finance automated trading strategies are to enable users to invest in a range of assets without having to manage them individually. By participating in different pools, users can gain exposure to various assets. Each pool is managed by a set of predefined strategies, which could involve different investment approaches, risk tolerance levels, or even specific sectors or themes.
By offering a decentralized platform, the pools aim to provide transparency, security, and autonomy to its users. The decentralized nature ensures that no single entity has control over the funds or the decision-making process. Instead, the management of assets and strategies is governed by smart contracts and community consensus.
Additionally, KEI portfolios focus on risk management, recognizing that every investment carries a certain level of risk. By implementing risk management strategies within each pool, the platform aims to protect users' investments and mitigate potential losses. These risk management mechanisms could include diversification across assets, regular rebalancing, stop-loss orders, or other risk mitigation techniques.
Pools are structured around a specific base asset, with the goal of accumulating the highest amount of that asset. The pool's success and profitability are measured by the increase in holdings of the designated base asset.
For example: If the base asset is Ethereum, profit is achieved when the pool accumulates more Ethereum. Likewise, if the base asset is USDC, profit is attained when the pool amasses more USDC. This base asset-focused structure ensures that the pool's performance aligns with the accumulation of the designated asset, enabling users to track and evaluate profitability based on their chosen base asset.
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Each pool and its subsequent strategy is created by a trader who assumes the responsibility of managing the assets within that specific pool (Note, the manager does not have ownership of your assets but a trade only permission for that pool based on their strategies.
When creating a pool, the trader will whitelist the assets that will be included in the pool. Once the pool is created and the assets are whitelisted, they cannot be edited or modified. This measure is implemented to prevent any malicious activities or unauthorized changes to the assets within the pool.
To participate in a pool, users can deposit their assets into the specific pool managed by the trader. However, it's important to note that the trader will only have trade-only permission for that particular pool.
This means that the trader can execute trades and manage the assets within the pool but does not have full control over the deposited assets. The users' funds remain within the pool and are not accessible for direct withdrawal or any other unauthorized actions by the trader.
To incentivize traders and bot makers to utilize our platform, we offer a customizable fee structure determined during pool creation. Pool creators have the freedom to decide how much they wish to receive in return for their services. This fee is applied to the profit generated from trades. As a result, whenever a successful trade occurs, the pool creator receives a portion of the profit. To facilitate this, we provide a selection of predefined fee options, allowing pool creators to choose the fee structure that best aligns with their preferences and goals.
| Fee Structure |
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| 0.5% |
| 1% |
| 2% |
| 5% |
| 10% |
| 20% |
| 50% |
The KEI finance diversification tech introduces a risk management feature that empowers users to set take profit and stop loss thresholds for their investments. If the investment value falls below the stop loss point, it is securely placed in a safe zone, preventing additional trades. Similarly, when the take profit threshold is met, the assets are moved to the safe zone. Users maintain control over their assets in the safe zone, with the flexibility to withdraw or reactivate them within the pool. This user-centric approach enables individuals to actively manage their investments according to their preferences and adapt to market conditions.
In order to support the protocol's maintenance and provide benefits to all KEI token holders, a fee proportional to the profit is also imposed. This fee is similar to the trader fee and is determined by the protocol itself. The profit allocated to the protocol follows the same distribution mechanisms as other avenues generating profit. This ensures that the profit shared with the protocol is subject to fair and equitable distribution among participants, contributing to the overall sustainability and growth of the ecosystem.\
User ROI is determined by the success of the strategy they engage with. Each asset comes with its own inherit risk factors. Users can see the history of the strategies before engaging and their function mechanic (Algorithim, bot or other) to make a calculated decision about the assets or strategies with which they wish to engage.
Typically blue chip assets perform the best in terms of volatility, although crypto is still considered a high risk investing environment. Users are advised to always do their own research before engaging in any trading functions.