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Platform Updates

Risk managers, not gamblers

Rules to filter out gamblers, scammers, and poor performing traders

Hello Everyone!

Over the past few weeks, based on the community’s feedback as well as our own observations, Zignaly has decided to take a step forward and act when considering that a trader is taking too much risk with followers’ capital.

So far, we didn’t think that we should intervene in a trader strategy. But, given the number of liquidations that we face in the last months, plus some bad practices that we have detected, we consider that we must protect users’ capital and incentive risk management.

These are some of the actions/rules that we plan to implement to filter out gamblers, scammers, or poorly performed traders:

  1. Maximum drawdown is mandatory. If the total floating is below that amount at any point, we may enforce a complete exit and disconnection of all the users. Each trader will decide his maximum drawdown.
  2. KYC will be introduced for the service providers. We’ll start with an optional verification process. Those who pass it will be highlighted in the marketplace. We encourage users to only subscribe to verified traders. Timelines for this process will be shared separately. Update: KYC will be mandatory for any new service launched after 9th August 2021.
  3. Mandatory KYC if the service wants to manage more than $50,000 in total allocated balance.
  4. Name/Logo updates won’t be allowed (unless there is a good reason and change to hide bad results wouldn’t be allowed).
  5. All services from the same trader (public) will be in the service profile. Liquidated services will appear there too and can’t be removed.
  6. Services from the same trader have to be under the same account.
  7. One month of trading data is required before being listed in the marketplace. However, we will limit the new services to a maximum balance based on 10 times the average capital that the service had during the previous month. This progression can last a few months until the trader has proven that they can manage big amounts of capital. Zignaly will monitor the activities and will tune this clause from time to time.
  8. All services will have an account manager from Zignaly to provide better service and problem resolution.
  9. If a service is inactive or barely active for over 30 days, and there is a significant percentage of users (more than 30%) in “disconnecting” status; we may enforce the position’s closing.
  10. If at any point, more than 35% of the total users are in disconnecting status, the service has more than 55% in losses (from open positions). The trader has a history of liquidations or has been inactive for more than one week; we’ll close all current positions, disconnect all users and delist all the services from the trader.
  11. A trader, with a history of liquidations, won’t be allowed to launch new services and current ones may be delisted, disconnecting all current users.
  12. New services have to be created with at least $500 and maintain a balance above $500 during the 1 month period of warming up.
  13. If at any time, the service has more than 50% of the allocated balance in “disconnecting status”, the trader will be forced to close the positions. The trader is free to re-open the positions for the users who would still want to stay in the service. In case, the trader refuses to do so, the positions will be closed by Zignaly, and consequently the service will be discontinued and the trader’s account closed.

We expect these new rules/actions will discourage gamblers and attract more risk managers, which we think is the right direction if we want to become a reliable source of passive income for our users.


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Zignaly is a social investment platform that lets you invest together with the top crypto traders and pay only a portion of your profits. https://zignaly.com