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We facilitate participation in trading algos while giving token holders the power over the fund. With the Ethereum smart contract we can decentralize the fund and govern the fund through voting. The available profitable trading algos trade the most liquid markets in the world: Forex and Indices
Based on the Ethereum Blockchain it is possible to construct interesting contracts. The fixed rules and online execution of a smart contract are ideal for combining with algorithmic trading. Algorithmic trading or bot trading is the trading of securities and their derivatives through programmed rules. The smart contract enables the managing of a common account including risk managment and payout managment. The creation of our own token (the Algo) is the easiest way of reproducing profit participation. The cost of participation in bot trading is super low thanks to blockchain.
The contract doesn't send money to brick&mortar businesses which causes complicated interfaces and the need for curators. Futhermore collecting assets to invest in other businesses is a heavily regulated activity that needs a license. Letting some bots run together is much easier, more entertaining and you will get results (hopefully profits) much faster, normally within days. The trades and the account can be observed live and online. The tokens can be sold anytime on a cryptocurrency exchange.
The contract is kept as simple as possible. We have a Broker-account with the assets deposited in US-$. A trustee ensures that we don't withdraw that money. Our bots do the trading with these assets. We can do following actions with the Ethereum Smart Contract:
Some participants may change their minds and want their Ethers back. They can sell their Algos every time on Etherdelta.com. The administrators will try to supply a good liquidity on the buy side, i.e. reasonable ask-prices on these exchanges.
A few participants might think after a while: "This will takes ages until a see a fat profit, let's increase the lot-size (the trade sizes). So he can make the proposal "set trade system number 333 to 10'000 USD per trade". If the proposal is accepted, the trading platform can read the decision out of the block. Remark: At first this is done manually by the algo.land administrators
Some participants might have more conservative plans and may want to withdraw the profits without selling their tokens. So he proposes to withdraw and distribute the profits . This is also possible as proposal.
Even others want a higher liquidity in their Algo tokens and see that there is a demand from others for more tokens. Their proposal would be: "Increase tokens by 2000 with a minimum price of 5$". This triggers a new sale of 2000 tokens where the price of one token is calculated from the base currency to Ether according the current rate
For details see the main part of the code on Github
The system looks like this:n und zu bearbeiten.
How algo.land is financed
Of the Ethers that flow in during a token sale, 100% of it is your trading equity. 20% of all trading profits are deducted daily (profit fee) and the remaining 80% belongs to the participants of the pool. The 20% profit fees are used for programming and administration of the pool, the trading account, the trading program and the VPS were the trading program is running.
For the detailed terms please read the document "Terms and Conditions"
The security of the funds
Unlike other projects, our funds are safe also after Crowdfunding. The broker account is in the hands of a Swiss lawyer www.schmid-recht.ch
Our broker is ASIC regulated and reputable FxOpen from Australia. Through myfxbook it is possible to monitor account balances in real time.
Is that legal?
As long as only small amounts of money (< 1000'000 - 2'000'000 $) are in the algo.land system, it doesn't fall under the FINMA-rules for funds. Furthermore we do not accept FIAT-money from people who want to participate. In case we should accept FIAT-money to sell tokens, we would request a full identification of this person. Since it is a closed group of people that all have the right to decide about the acts of algo.land, we consider ourself as investment club.
So we comply to all Swiss laws.
The system providers:
The liquidity providers:
The media partners: