What is DARMA Ether Optimized Long (DOL-ETH)?

Below is an excerpt of DARMA’s Ethereum Investment Thesis, please request the complete document here and review all applicable disclosures.

For DARMA’s clients to benefit from the specific qualified Protocol Layers, DARMA provides multiple programs, each representing an ‘Optimized Long’ investment in the most significant digital assets within each protocol layer of Web 3.0.

DOL-ETH

Representing DARMA’s investment in the Smart Contracts Protocol Layer, DOL-ETH is the first strategy available in DARMA’s Optimized Long investment program. DOL-ETH provides a net long position in ether (ETH) with proprietary sell only “hedge” overlay strategies to achieve outsized returns relative to standard benchmarks. The fund may engage in other digital assets as short term volatility spread opportunities, if risk and correlation coefficient parameters are met. Designed for investors who want to protect a net long ETH position with additional alpha generating strategies applied.

DARMA takes a quantitative approach to managing market and digital asset risk by defining different risk regimes within a structured price framework. The methodology, developed from over 30 years of applied analytics from Commodity Trading Advisor JS Services Research and Trading LLC, provides objective context to identify where shifts in risk states occur. This proprietary, predictive price structure allows opportunities to be anticipated so trading methods can be optimized by aligning tactics with these facts.

DARMA applies this risk management system to each DARMA Optimized Long opportunity. DOL-ETH is the first strategy implemented by DARMA to profit from the analysis of the Smart Contracts Protocol Layer and now available to qualified eligible participants (QEPs). The DOL-ETH strategy is suitable for both institutional investors and as a treasury management tool for token launched companies.

DOL-ETH provides a net long position in ether (ETH) which include proprietary “hedge” overlay strategies to achieve outsized returns relative to an ETH benchmark. Given the substantial volatility of ETH, it is prudent for companies that have raised significant amounts of ETH to have these assets managed professionally while focusing on their company’s mission. The strategy may trade in major fiat currencies and BTC for short term volatility spread opportunities, if risk and correlation coefficient parameters are met.

This post was an excerpt of DARMA’s Ethereum Investment Thesis, please request the complete document here and review all applicable disclosures. DARMA Capital is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets.