At the moment, cryptocurrencies are considered as an attractive investment asset, characterised by high profitability. At the same time, as is known, the higher the profit, the higher the risks. In exchange trading investors face various risks, primarily a group of market risks associated with changes in the value of financial assets.
Due to the relative novelty of the markets, cryptocurrency is characterised by an increased volatility, which is rather a benefit for experienced traders, since it allows you to receive high profits in short periods of time. At the same time, for novice investors, high volatility acts as a kind of entrance barrier to cryptocurrency market. Topex.io economic model is aimed at reducing market risks in the trade of crypto currency and fiat currency, this approach helps to reduce the entrance barrier to cryptocurrency market.
The golden rule of investing is the following: invest as much as you are not afraid to lose, and you can be not afraid with Topex.io!
Deep analysis of the competitive environment, coupled with a systematic approach to reducing the uncertainty of trade in cryptocurrency, will allow us to create a new generation exchange. The idea of Topex.io is based on a systematic approach to risk analysis. Topex.io’s exchange model allows you to hedge volatility risks for traders through loss-compensation transactions.
- The economic model underlying Topex.io is aimed at reducing volatility risks;
- Website security solutions are aimed at reducing operational risks;
- Marketing campaign and successfully functioning Topex.io website by its very existence will be attracting traders and investors therefore reducing the risk of liquidity;
The economic model of all exchanges is based on commissions for trading operations on them, since commission payments are the main and most significant source of their income.
There is an increasing number of cryptoexchanges, among them there are those that do not charge a commission for the implementation of operations of purchase and sale. The absence of a commission may indicate that these exchanges act as a supplement to the main type of commercial activities of their developers, for example, providing asset management services to their customers. Under that logic the main efforts are always focused on the type of activity that generates income and allows supporting support.
There are also websites that do not plan to charge a commission in the first months after launch, gradually introducing and increasing the percentage of the fee for their participants. Such model carries some risks, since it complicates the construction of long-term trading strategies for traders, introducing additional uncertainty.
Topex.io is a new generation exchange. In addition to the distribution of profit between the token holders, our exchange deals with partial or full compensation of losses in the trading operations, the opening and closing of which was carried out within 24 hours.
Compensation for losses is realised through redistribution of the fourth part of the commission fee of the exchange between the bidders. The amount of compensation is directly proportional to the volume of funds for a specific transaction. The less transactions are closed with a loss, the higher the percentage of the compensation fund goes to each of the participants.
The Topex.io compensation fund is formed from part of the daily profit of the exchange and is 25% of the daily turnover. Unspent funds for last 24 hours are transferred to the next day and etc. Topex.io provides traders with a safety net, the size of which depends both on the total trading volume on the stock exchange and on the success of each individual trader, so we are interested in minimising the loss of assets by our participants. To do this, a special system will be launched, allowing our members to optimise their trading strategies.
More information can be found in the Whitepaper: https://topex.io/docs/wp/topex.pdf (page 10)
