Hedge It Smart: Why Risk Management Matters
On 4 December, the crypto market crashed. Unless a hedging strategy was leveraged, the drop destroyed a significant portion of the investors’ profits.
Our CEO, Eitan Katz, has investigated this drop event from a hedging position.
Institution holding a significant amount of crypto assets: with VS without hedging:
− On 4 November, a 10,000 AVAX position was worth $741,900. Meanwhile, on 4 December, your position would be worth $935,080. That is a 26% increase.
− Using a proper beta hedge, your position would have been $1,173,967.78 on 4 December. This is an increase of 58.23%.
What is Smart Hedge?
Smart Hedge is a set of hedging strategies that significantly reduce the systematic risk for a range of crypto assets, including SOL, ADA, AVAX, GRT, BNB, etc.
Crypto VCs, funds, and family offices that invest in crypto projects benefit from the new product as it protects against market movement (beta).