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How building equity increases investor security

At Yieldfund, everything we do revolves around creating value for both our company and our investors. While we strive for solid financial growth, it’s equally important to minimize risks for our investors. The success of our strategy lies not only in the returns we generate but also in how we build our equity (EV) and use it to provide greater security for our investors.

In simple terms, the more net profit we make, the higher our equity grows. This equity acts as a buffer, increasing the platforms stability and offering investors a higher degree of security. Let’s explore how this approach works and why it’s so important for minimizing investment risks.

What is equity (EV), and why is it important?

Equity, or EV, is the difference between the value of a company’s assets (in this case, the investments in the platform) and its liabilities (debts and other obligations). It’s a key measure of financial health and plays a crucial role in a company’s ability to absorb risks. The higher the equity, the larger the buffer to absorb potential losses without affecting investors.

For example, imagine managing a quantitative trading company with a total value of €1 million and an equity of 20%. This means the platform has €200,000 in net equity, while the remaining €800,000 represents liabilities or risk. In this scenario, the investment risk is 80%.

As our equity grows, this ratio improves: the buffer increases, the chance of losses decreases, and the risks for investors become smaller. This is the cornerstone of how we prioritize investor security at Yieldfund.

The strategy: growth and cost control

A critical aspect of our strategy is balancing significant growth with strict cost control. While these goals might seem contradictory, it’s a conscious decision designed to ensure both the growth and stability of the quantitative trading company.

Why keep costs low? Every euro saved on operational expenses is another euro we can use to strengthen our equity. By minimizing costs, we generate higher net profits, which we reinvest into the platform to increase equity. This not only provides investors with greater security but also ensures the platforms long-term health.

Additionally, this approach avoids wasteful spending on areas like excessive marketing or unnecessary overhead. Instead, we focus on generating stable returns and reinvesting them strategically to promote growth and reduce risk.

A long-term perspective

At Yieldfund, we take a long-term view. Our goal is not just to generate profits today but to create a sustainable and stable foundation for the future. By steadily building equity, we ensure that our quantitative trading company can continue to grow while protecting investors from excessive external risks.

This approach allows investors to grow their capital over time, with the confidence that their investment is being managed responsibly and with their security in mind.

Conclusion

The Yieldfund strategy is simple yet effective: by building equity, we minimize risks for our investors. By keeping costs low and reinvesting profits into our platform, we increase equity and strengthen the financial stability of the platform. This provides investors with a solid foundation and assurance that their investments are protected from unnecessary risks.

As we continue to grow and strengthen our equity, Yieldfund ensures that investing is not only profitable but also secure and reliable. This makes Yieldfund a trusted partner for those seeking sustainable growth and peace of mind in their financial journey.

Ready to make your dreams of receiving high returns come true? Invest in Yieldfund today. After a one-time investment, we’ll do the rest so you can sit back, relax and watch your income grow!

Disclaimer: The content of this article do not constitute financial or investment advice.

Yieldfund's last trades

ETH-USDC
Long
5.23%*

Entry price
1702.0082

Exit price
1711.5500

Date
April 22, 2025

XLM-USDC
Long
-2.68%*

Entry price
0.2599

Exit price
0.2593

Date
April 22, 2025

SOL-USDC
Long
5.26%*

Entry price
145.0591

Exit price
145.8800

Date
April 22, 2025

*The trade percentages are the net percentages. The trade costs have already been deducted.

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