How Three Arrows Capital Missed Every Target They Aimed

Published in
2 min readJul 20, 2022


Photo by Ricardo Arce on Unsplash

Three Arrows Capital (3AC) just wiped out its investment capital of nearly $3 Billions in months. The cause of the collapse like through high leverage decentralized finance (DeFi) and high debt ratios.

Let’s explore why 3AC instantly collapses.


Su Zhu and Kyle Davies are the founders of 3AC. The company was founded in 2012 to provide superior risk-adjusted returns. Ironically, the risk did not adjust properly, and the company went out of business instantly.

Investment Strategy

We do not know how 3AC invest their funds, but we do know they invested in:


Own houses:

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