How can a investor protect themselves against the risks of purchasing UMCcoin tokens?

UMC
2 min readJun 19, 2018

--

The hedging instrument has been used for centuries to protect investments on the traditional financial markets. Hedging is a risk management method used to protect your capital against unfavorable market changes.

UMC is considering the opportunity to protect its investors from risks. For this purpose, the UMC team is in the process of negotiations with a company engaged in providing protection against risks on the cryptocurrency market.

As a result of this agreement, the first investors will be able to insure their investments and protect them from all sorts of risks when the pre-sale of the project starts.

How will the risk hedging function work when an investor will purchase UMCcoin tokens?

The investor will be able to purchase tokens with protection for 6 months.

The guarantor company uses Ethereum, the technology of smart contracts, which is programmed for full and automatic reimbursement when the price of the insured token falls. In the event that during the term of protection the rate of the token falls or the project’s tokens do not go to the exchange, the guarantor company will reimburse the investor’s losses. At the same time, an investor can refuse automatic payment and independently decide on a request for compensation.

The investor can track the amount of reserved compensation at any time through blockchain.

Each investor will be able to use the hedging option by the expense of bonuses. Investors will have a right to decide whether they need to protect their investments from risks.

We also have a question to our UMC-community.

Do you find this option useful?

Is it worth implementing the possibility of protection against risks when buying tokens?

Please write your thoughts in the comments.

Your feedback is very important to us.

--

--