FIX Token Private Sales : ‘White Paper’
15 July 2018
Readers of this material confirm to have read and understood the information below.
Finamatrix Investments Pte Ltd is an exempt private limited technology company in Singapore and provides this material only as a reference. Nothing in this material should be construed as advice. Prospective investors are advised to consult their professional advisors before making any decision. The contents of this material are based upon sources of information believed to be reliable, however, no guarantee, warranty or representation (express or implied) is given as to its accuracy or completeness and, Finamatrix Investments Pte Ltd and their directors, officers and employees do not accept any liability or responsibility in respect of the information herein. Further, information in this material may be subject to change without notice. Historical results of any investments do not necessarily indicate future performance. You should take advice from own professional advisors before making any decision. Without prior written express permission, this material is not to be altered or transmitted in any way, copied or distributed.
Founded in 2006, Finamatrix is an AI firm and seeks to be in-line with Monetary Authority of Singapore (MAS) regulations.
FIX token initial coin offering (ICO) is your source of safe returns.
We believe in brevity, statistical parsimony & real value.
And corporate social responsibility.
FIX Crypto : Utility
1) FIX token holders can access FIX-DEX, to experience our new AI-driven trading platform, a full-featured digital trading exchange with social-trading, auto-trading, options, etc. on FX, crypto, commodities, and indices. VIP members with at least 5,000 USD worth of FIX tokens receive the same amount in their real trading accounts and qualify for lowest transaction fees.
2) FIX token holders enjoy profit-sharing through FIX bonus calculated based on our net earnings (sharing of up to 50%) and distributed proportionately to token holders and/or token buy-backs every quarter.
3) Non-VIP members who own less than 5,000 USD worth of FIX tokens receive one-time 100 USD in their trading accounts if they add https://t.me/fixdex (applies to VIP members as well).
Unique Selling Proposition
Finamatrix is an AI Technology firm that has created the unique AI Aggregator engine with crowd-sourcing from the financial intelligence community.
Finamatrix empowers you with AI to help achieve your financial objectives.
We promote mass adoption of AI by allowing owners of FIX token to automatically access AI to manage risk and capture financial opportunities in highly volatile markets including cryptocurrencies.
Finamatrix AI integrates with Waves blockchain using unique API protocols (smart contracts) for executing seamless risk management to capture mis-pricings (under/over-valuations) for profit.
Finamatrix AI includes our proprietary technology Risk-Cybernetics™ that decodes price discovery of any asset including cryptocurrencies for time-varying portfolio selection, so as to better manage risks and reduce the problem of selection bias.
Every asset is subject to different price discovery functions and our AI implements MVSK utility optimization and other technology to better describe and estimate the pricing function and uncover commonalities for logical industry groupings. These self-learning protocols are embedded in the smart contracts for seamless execution (no time lag), with automatic re-calibration (statistical bias reduction) in an optimized portfolio.
Portfolios below for illustrative purposes only. Portfolio selection process is AI-driven and allocations are subject to change at different points in time.
1) Smart Community
People who buy FIX token at low prices and sell at higher prices as
the value of FIX increases due to quarterly positive performance.
2) FIX Token
The FIX token is issued on the Waves Blockchain (that offers high
wallet security and is fully KYC compliant) which is integrated with
Finamatrix AI for seamless, secure and automated executions for
trusted accounting and auditing functions. Owning FIX token represents the right to access Finamatrix AI technology and to participate in the
Finamatrix bonus program.
3) 3B — Bonus/Buyback/Burn
The bonus program is a loyalty program based on quarterly audited
reports of Finamatrix. The top 10% of all the owners of FIX tokens in
terms of quantity will receive bonus FIX tokens as a form of reward. Finamatrix shares up to 50% of net increases in portfolio values per quarter. For eg. if portfolio value increases by 20% after one quarter, we can give up to half of 20% which is 10% in the form of FIX tokens to our token owners.
The buyback program is a 100% refund policy (principal protected) that is based on quarterly audited reports of Finamatrix. At the end of
each quarter, FIX token owners can apply to refund their tokens for
Bitcoins at their cost price if the price of FIX token is lower than their cost price. Owners must apply online on the official website for a refund and subject to verification will receive the refund.
The burn program is where Finamatrix can reduce the total supply of FIX tokens in a token-burning exercise where FIX tokens are sent to a specific address and will be irretrievable.
4) Trading Software / Crowd Open Sources / Crowd Research Databases / Crowd Competitions
Trading Software — These are various software that allows us to test
strategies for implementation in our AI.
Crowd Open Sources — These are various online sources of strategies
that can be improved upon for implementation in our AI.
Crowd Research Databases — These are information that contains useful
strategies that can be enhanced for implementation in our AI.
Crowd Competitions — These are individuals that have useful strategies
that can collaborate with us for implementation in our AI.
5) Finamatrix AI Aggregator
The AI aggregator is a hybrid of expert experimentation and AI-driven
selection of useful strategies for implementation in our AI.
This is the core AI technology where the most suitable strategies are
implemented for specific assets while reducing risk and optimizing
7) Super Asset Portfolios (SAPs) or Quant Portfolios
Quant portfolios are super liquid assets that contain big data and
hence are AI-compatible. They include liquid cryptocurrencies, FX,
commodities, technology stocks, short-term market-making and private
placements or transactions. These assets can be converted to cash
within 24 hours.
Buy FIX token to access AI & super assets to gain value from FIX token
appreciation + bonus program. The Smart Community can sell FIX tokens
in exchange or redeem for Bitcoins in the buyback program.
B) AI TECHNOLOGY
The technology will automatically send trading signals to various
exchanges to trade in different assets. Selection bias is reduced for
optimizing returns and also assist in 3B mechanism.
This is a new AI-driven asset class that offers high scalability,
security and sustainability. Finamatrix offers an unsurpassed
succession and business continuity plan.
Note: Research and development expenses will be transformed to higher valuations in intellectual property. Infrastructural expenditure will be transformed to safe real estate values.
Please read Terms and Conditions in: https://medium.com/@finamatrix/finamatrix-ico-terms-conditions-edd743991615
If you bought $1,000 of Bitcoins in 2010,
it would be worth more than $30 million* today.
*Bitcoin price was about $0.10 in 2010 and peaked in June 2017 at about
3,000 USD or 30,000 times or 3,000,000% from 2010.
What do they have in common?
ADAM SMITH (born June 16, 1723) was a Scottish economist, philosopher, and author. Notable ideas:“the invisible hand”
WILLIAM F. SHARPE (born June 16, 1934) is an American economist. He is the STANCO 25 Professor of Finance, Emeritus at Stanford University and the winner of the 1990 Nobel Memorial Prize in Economic Sciences. Notable works: Capital Asset Pricing Model (CAPM) and Sharpe ratio.
LANZ CHAN (born June 16, 1975) is a Singaporean economist and quant specialist who was based in China for 12 years and was Professor at Beijing Institute of Technology. Notable works: Atomic Portfolio Selection MVSK Utility Optimization and Risk-Cybernetics technologies.
2000 — Strategiance Global was founded in Singapore by Lanz Chan working with media powerhouses while co-owning and manufacturing new beverage product.
2006 — Finamatrix.com, Finamatrix BVI, Finamatrix Cayman were founded by Lanz Chan which managed USD2m of own/client funds. FX quant research work began.
2010 — Founder Dr Chan worked with PingAn Group and Galaxy Asset Management (HK) offering one of the first CSI300 futures fund in China. At the same time, Finamatrix quant research breakthrough showing long-term stable returns with proprietary Risk-Cybernetics technologies.
2012 — Finamatrix offered its multi-strategy quant portfolio to select group of investors and partners with boutique private banks, multi-family offices, independent financial advisors and wealth management groups.
2013 — Dr Chan trained more than 100 quant traders to build his core quant team for sustainability in automated trading.
2014 — Dr Chan received global top-ten neural-network research award from SSRN.
2016 — Finamatrix received fund award nominations and offered online retail solutions. New research breakthroughs with rigorous back-tests creating robust and self-perpetuating Fin-Tech innovations which can cope with highly-scalable assets.
2017 — Finamatrix receives more fund award nominations and manages USD30m in boutique private fund and starts to offer Singapore, HK & Cayman Funds available to global accredited investors. Finamatrix issues initial coin offering to empower millions of people with AI for access to super liquid asset portfolios including cryptocurrencies, new technology investments, FX/commodity hedging, private placements, liquidity and market making activities, as a new form of AI-driven asset class. Finamatrix plans for mobile APP as a key engagement platform with users.
2018 and beyond — Finamatrix AI and AI Aggregator Engine continues to self enhance for sustainability and has increasing valuations for its intellectual property, real estate values and global brand.
Finamatrix Team : https://medium.com/@finamatrix/finamatrix-ai-team-profiles-c5424a697e8d
DEMAND Function: Why own FIX Token?
+ Access applications of state-of-the-art Risk-Cybernetics™
+ Complete safety and security with easy access to regulated fund.
+ Established Crowd-sourced Quant AI algo-investments.
+ Access to our capabilities in Custom-Blockchain smart tokens.
+ ICO offers a Diversified portfolio with a Value focus.
+ Own FIX to be a Member and potentially gain.
+ Sustainable Global Advisor & Partner network for succession.
+ Cheapest access to China investor markets without the red tape.
Capital raised from ICO will be allocated to the following:
20%* to flagship regulated Cayman fund.
30%* in 3-B Token-Pricing system for token Bonus/Buyback/Burn.
20%* to AI-Crypto Portfolio & Global New Tech assets.
30% to Software & Infrastructure development which will translate to valuable intellectual property and real estate to boost valuations.
*these allocations may change from time to time as and when needed. We will provide a quarterly report or updates whenever necessary on our website.
Risk-Cybernetics™ Tech Applications
on Crypto-Portfolio Selection under
MVSK Utility Optimization*
Example of AI-Cryptocurrency Portfolio:
+ Waves Platform
+ Lykke Digital Exchange
Example of Global New Tech Investments:
+ New tech, trend stocks.
+ Alibaba, Tencent, etc.
+ Tech ETFs, Indexes.
*please refer to references. MVSK framework reduces selection bias for more accurate risk measures and controls.
Conventional Portfolio Selection: Markowitz / Sharpe Mean-Variance Efficient Frontier : Does not account for non-normal returns causing selection bias.
*MSWD: Morgan Stanley World Index
FiNAMATRiX: Competitive Advantage.
+ Self-Created and Crowd-sourced quant strategies.
+ Self-innovating machine-learning crypto-bots.
+ Proprietary Risk-Cybernetics™ Tech.
+ Proven lean & efficient corporate structure with low costs.
+ Capabilities in custom-Blockchain smart tokens.
Selected References from our Team:
Chan, Lanz and Wong, Wing-Keung, Automated Trading with Genetic-Algorithm Neural-Network Risk Cybernetics (February 20, 2012). Finamatrix Journal, February 2012 . Available at SSRN: https://ssrn.com/abstract=1687763
Chan, Lanz, Atomic Portfolio Selection: MVSK Utility Optimization (June 16, 2004). Finamatrix, July 2011. Available at SSRN: https://ssrn.com/abstract=1744802
Chai, Woon Huei, A Fast Sparse Reconstruction Approach for High Resolution Image-Based Object Surface Anomaly Detection (May 8, 2017). Machine Vision Applications (MVA), 2017 Fifteenth IAPR International Conference, ISBN: 978–4–9011–2216–0 . Available at SSRN: https://ssrn.com/abstract=3007646
Chai, Woon Huei, Robust Prediction in Nearly Periodic Time Series Using Motifs (July 06, 2014). Neural Networks (IJCNN), 2014 International Joint Conference . Available at SSRN: https://ssrn.com/abstract=3007625
At the Heart of Sustainable Returns is
Consistency from Comprehensive Risk-Control :
+ Strict selection of hedging, arbitrage and market-neutral strategies from our team and global market space.
+ Careful scrutiny of trading history and its accuracy.
+ Continuous forward-testing / real trading records.
+ Each strategy has objective and independent automated algorithms with strict trailing stop-loss & take-profit system.
+ Dynamic capital-usage and Team-Training.
+ Monthly review and rebalancing of strategies.
+ Portfolio automated alarm system in place.
+ Portfolio system eradicates subjective human errors.
All-encompassing risk system ensures low relative drawdowns to achieve target returns from the best strategies available.
Current & Future Plans : Sustainability
+ Applied Risk-Cybernetics in regulated quant hedge fund.
+ Regular testing & multi-cloud hosted to cope with large funds.
+ Develop algo-portfolio selection of crypto-currencies.
+ Leverage off & capitalize on network of cryptos.
+ Develop custom-blockchain smart tokens/contracts.
+ Further partnerships with Cryptos, FoFs, family offices, etc.
+ Further link with China/Singapore robo-advisory platforms.
+ Offering risk-hedging portfolios & superior value.
+ 2 key persons with back-up codes and succession protocol.
+ Highly efficient, scalable & sustainable business model.
+ Resulting in low costs & attractive profit margins.
Quantitative Methodologies Explained
Machine-Learning AI Engine: Risk-Cybernetics.
Breakouts, Reversion, Momentum, Trend, Range, etc.
GENERAL CONCEPTS of our strategies is as follows:
+ Utilize pip data to capture inefficiencies in pricing.
+ Calculations use estimators or sensitivity coefficients.
+ Estimators are range bound and dynamically generated.
+ Set of rules developed using active genetic-optimization.
+ Auto-creation of parameter sets is core of self-learning.
+ Creates new back-tested network nodes with time.
+ Program modules include nodes and sub-nodes.
+ Capital control, lot-size calculator, trade logic, order logic;
+ Long/short logic, breakeven logic, trailing TP/SL logic, etc.
Appendix II : BLACK SWANS/GAPS/SPIKES/FLASH CRASHES
Unexpected events are termed as Black Swans that cause price spikes or flash crashes. Some may say that Brexit and the Trump win are Black Swans, however regardless of the outcomes, the high volatility would have been expected during those periods, which is unlike the de-pegging of the Swiss Franc in Jan 2015 which was totally unexpected.
With hedging strategies, we thrive on volatility and not on one-sided bets so long as we understand the limitations such as how automatic stop losses exacerbate crashes.
To us, Black Swans are mostly events that are totally unanticipated, for example a sudden breakout of war or an outage of trading servers due to whatever reasons including terrorism, etc. Strategies that capitalize on price gaps and spikes can be tricky in execution even though it is automated. Hence we must be very cautious when using such strategies during excessive price action due to potential slippages resulting from limited liquidity at different price levels.
One logic of algorithms that are able to eliminate losing trades is by identifying the common factor of successful trades. Making consistent returns is a tech problem, however we have to be extremely careful in using the tech and be fully aware of current limitations, which we are constantly enhancing through regular stress-testing.
Appendix III : TRADE LOGIC AUTOMATION & CAPABILITIES
There are numerous trading strategies that work for different types of price action including breakouts, mean-reversion, range or other trends.
These trading strategies are profitable if they are implemented with:
- appropriate dynamic lot-sizing weighted with probabilities;
- proper identification technologies in classifying suitable parameters;
- utilize risk-control measures such as trailing-stops and break-evens;
- portfolio of strategies on portfolio of instruments to achieve hedging;
- recognize that hedging techniques are multi-faceted and dynamic;
- every trade is a calculated risk, no trade will break you;
- let the profits run by back-testing strategies in a realistic environment;
- strict back-tests are almost 100% the same as forward-tests or even stricter.
The core of our FinTech is in identifying different price volatility structures or different forms of price action that are classified into sufficient decision groups with parsimonious commonalities, so as to detect details, with efficacy, that are not observable under the naked eye.
All these provide the edge for sustainability.
Appendix IV : QUANT FUND CAPACITY & CLIENT DISTRIBUTION
As our fund grows in scale, can the strategies cope? Can we open position when we want to open? Can we close when we want to close? At the prices and volumes that we want? As part of due diligence, clients want to know if our trading strategies are designed for large fund capacities.
Finamatrix fund comprises a portfolio of strategies on a portfolio of instruments with deepest liquidity as we believe that diversification is a key method in successfully implementing hedging trades so as to reduce risk while increasing returns, and to eliminate statistical bias which increases efficacy and hence be able to cope with large fund sizes. Our current client base:
Appendix V : Finamatrix Quant Fund (Managed Accounts)
Net Real Returns Performance*
2013–2017 — As published in EurekaHedge & MorningStar
*Above record is based on unaudited privately managed accounts in various brokers. From 2013, our funds were of smaller size and targeted higher returns. Since 2017, our private fund size grew substantially to about USD30m. In 2017 we have setup a regulated Cayman fund to manage USD20m. We expect continued growth with our global partners.
Appendix VI : Risk-Return Analysis* : 2013–2017 (Monthly Data)
*As published in EurekaHedge & MorningStar. Low correlation to MSCI.
Appendix VII : Finamatrix Quant Fund (Managed Accounts)
Hedge Fund Summary By Morningstar
Finamatrix is a Multi-Account Manager managing private client funds of approx. USD30m. We have already setup a regulated fund for accredited investors under CIMA (Cayman).
Fund size: 20m USD
Fund Manager: Singapore regulated fund manager
Investment Universe: (unrestricted)
FX, Commodities, Futures, Stocks, Options, etc.
Finamatrix Investments Pte. Ltd. (Singapore)
Email: ICO @ finamatrix.com