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Get Rewarded for
Performance, Twice

AlphaSwap cash payouts are purely based
on performance.

Monetization

No contests to participate in and no prizes to win – your payout is determined by the performance of the ideas you generate or vote for.

Cash Payouts are tied to AlphaSwap Credits.
These are the lifeblood of AlphaSwap platform, and a vital mechanism with which payouts are able to be calculated.

What do you mean by get rewarded, twice?

What do you mean by get rewarded, twice?

Double rewards means you get rewarded in both cash AND AlphaSwap credits. Credits are the backbone of the AlphaSwap ecosystem. .

Where does your funding come from?

Where does your funding come from?

AlphaSwap manages a pool of funds with which to facilitate both the monthly payouts and discretionary bonuses. This pool is backed by institutional and private investors.

How is my monthly performance calculated?

How is my monthly performance calculated?

The core principle behind tracking performance is using the ITD (Inception-to-Date) method. This means tracking a cumulative total of all activity since an account is created. We use AlphaSwap Credits as the mechanism with which to do this. The more credits you accumulate, the more payouts you will generate (subject to a high watermark).

How does it work?

Performance is calculated based on a set of variables. These differ depending on whether you are being rewarded as an Idea Generator or Idea Voter.

As the Idea Generator you (naturally) gain the largest share of the payout
in both cash and credits. This is calculated using the following inputs:

Performance of the idea

Performance of the idea

Amount of credits you committed

Amount of credits you committed

Total Amount of credits committed

Total Amount of credits committed

Performance of the Portfolio

Performance of the Portfolio

The cash payout to the Idea Generator is a function of the ITD (Inception-to-Date) number of credits earned

For credit payouts, the Idea Generator earns the number of credits committed to an idea, times the performance of the idea, times a 2x multiple. Conversely, the Idea Generator loses 2x the credits times the performance of a losing idea.

As the Idea Voter you gain the remainder of the payout in both
cash and credits, for every successful idea you voted on.
This is calculated using the following inputs:

Performance of the idea

Performance of the idea

Amount of credits you committed

Amount of credits you committed

Total Amount of credits committed

Total Amount of credits committed

Performance of the Portfolio

Performance of the Portfolio

The cash payout to the Idea Voter is a function of the ITD (Inception-to-Date) number of credits earned.

For credit payouts, the Idea Voter earns the number of credits committed to an idea, times the performance of the idea, times a 0.5x multiple. Conversely, the Idea Voter loses 0.5x the credits times the performance of a losing idea.

Things to keep in Mind

Risk Management

Risk Management

Risk management. Open positions with a drawdown of over 30% will be automatically closed in order to limit further losses. When submitting or voting for an Idea, please consider the volatility of that share.

When calculating performance a haircut of 20% is applied to all open positions.

Cash Payout

Cash Payout

A portion of the cash performance fee will be held in escrow. The amount held in escrow is dependent on the open positions of the users, and the haircut applied (20%)

If a user has been overpaid in cash (for example due to high early performance and consistently low future performance), they get a negative balance on their escrow, which they will have to earn before getting any more fees.

Cash payouts are only paid on realized performance. Unsuccessful positions will impact your performance and payout. Realized performance is calculated using the credits system, user will only be eligible for cash payouts if they maintain a credit balance over and above the initial 1,000 credits.

Credits

Credits

Users earn/lose credits on a monthly basis on unrealized performance

Rewards Pool

Rewards Pool

During Q3-Q4 2019 the size of the monthly pool will range from $1,000 – $10,000. Exact amount depends on the performance of the portfolio and amount of users.
Higher performance and more users = larger pool.

Bonuses

Discretionary Bonuses can be given to top performers in the early stage AlphaSwap growth phase.

These range from $20 – $500 and are for users who generate the most ideas, and users who have the most consistent positive performance.

FAQ

We’re sure you have questions. Here are some answers to the most commonly asked ones.

How much can I earn?

The principle behind AlphaSwap is that successful users get paid in cash based on their performance. At present, the total amount payable to successful users will vary between $1,000 and $10,000 per month. The total amount and how it is allocated depends on the number of performing ideas, their performance and also on how a user’s other ideas are performing.

Do I need to invest anything?

You do not need to invest capital. Users do need to commit Credits to submit or vote for an Idea, and at the moment Credits are awarded to users for free. We are applying this principle because we value high quality, high conviction ideas on the platform in order to generate attractive performance.

Would there be conflict of interest with my current role?

Users who are in an investing or markets role will have compliance manuals with varying degrees of depth, but one important point is that users do not invest in securities on the AlphaSwap platform. Notwithstanding, we recommend that users focus on submitting investment ideas which are outside of their direct professional remits.

How can this help my career?

Whether you are on the Buyside, Sellside, or a Private Investor, AlphaSwap is unrivalled in its ability (and focus) to help your career. You will get validation and traction of your ideas, while sourcing new ideas. Most importantly, you will create a track record of ideas and performance you can point to.

Can I be anonymous on the platform?

Yes, you have the option to stay anonymous. You can at any point in time choose to convert your profile to a named profile should you wish to.