We launched Mudrex Protect a few months ago and today 90% of bundles that are published on Mudrex Invest have Mudrex Protect. Fortunately, bundles on Mudrex have had a great run and <10% of users have actually been eligible for the refund. Having said that there were still multiple issues that we want to address. Based on the feedback we have decided to change how Mudrex Protect works.
Old Implementation
- Creator decides if they want Mudrex Protect or not
- Creator decides the time frame (1–6 months) over which they are sure the strategy will give returns
- If the user stays for the given timeframe and has a loss then they get the fee refund.
- The clause is a rolling clause.. so at the end of the 4 months the user gets a refund for the first month
- Till the end of the period, Mudrex holds the money in escrow
Issues with this implementation
- The purpose of a strategy is not only to provide high returns but also to reduce losses. In the old implementation of Mudrex Protect, the focus was only on returns while no benefit is given to the strategy for reducing losses
- It takes a really long time for investors to get refunds often ~3 months
- Takes a really long time for creators to receive payouts often ~3 months
- Complicated returns calculation.
- Users cannot utilize the fee they paid in one month for the next one.
- Causes high churn in cases where the Protect period is too long because in those cases the idea is almost pointless
New implementation
- Mudrex Protect now becomes a month to month clause. i.e. creators can no longer define the month periods. This reduces the time frame of the refund to 1 month
- The investor should pay a fee only when the promise of the strategy is fulfilled. This means that we charge only if the strategy makes profits for you or stops you from making losses in a crashing market.
- The creator can still decide if they want to Enable or Disable Mudrex protect
- The Investor still needs to be live at the end of the month to be eligible for Protect Payout
- Mudrex Protect refund will come to the account automatically. The refund can then be used to pay next month fees
Originally published at https://blog.mudrex.com on December 10, 2020.
