Indirect Crypto Exposure | ICE

ICE - Indirect Crypto Exposure tracks broader market exposure to crypto markets through means other than direct investment in currencies. There are several trillion dollars worth of indirect exposure to crypto, a number that is likely to continue to grow as adoption rates rise. As such, ICE takes into account this expansion of indirect exposure and cross-weights it against a trailing percent change DoD. Through this method, portfolios can be built to encompass growth of indirect exposure without the need for the overall capitalization of the crypto markets to increase. However, volatility is baked into the product through correlations between DoD and MoM performance, therefore it can have wider fluctuations and can act as a shorter to mid-term trading tool based on portfolio bias of the aforementioned.

Mints start at 10 USD worth of ISA and will theoretically trade as a summation of total indirect exposure changes with a risk association to previous performance. The higher the growth in the area, the more sensitive ICE is towards positive moves. The lower the growth, the less sensitive the asset trades. Over time - the range will rise or fall based on growth, but the bias representation will remain consistent.

Like all collateralized products on our platform, sRho is used to secure the short position. ICE utilizes a 1.75:1 collateral ratio to secure the position. A 2.5% mint fee is required to mint ICE - with the minter receiving sICE in return as a receipt.

A 2.5% fee applies to swapping sICE. sICE can be bonded and sold to the Treasury. Short-sellers will also pay interest to the pooled long sICE at a daily interest rate of 0.2% per day - which will be paid for in sRHO. This daily interest will be calculated at the time of establishing the short by entering the maximum number of days you will be short for. Once the time limit is up - the short contract will expire and the short closed. If ICE is below the price when the short was initiated, the aggregated long pool of ICE will pay the unit count worth of profit to the now closed short holder. The time interest the short paid to the collected pool of longs will then be distributed to the longs proportional to their positional unit count.

However, the interest will only be paid to the long holders that were in the pool at the time the short was established. If a short-seller chooses to close out their position at a loss, the collateral lost will be divided among all long sICE unit holders that were in the pool at the time the short was established. If the short-seller closes out their position at a profit, the percentage of the profit will be divided amongst all long-holders and the appropriate sICE units will be transferred to the short-seller as profit.

Shorting above the total float of FIM in the lending pool is prohibited.

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