How we manage risk? Learn about risk and trading

Risk management

At Yieldfund, capital preservation is key. Thus, we combine advanced technology with thoughtful strategies to minimize risk for our investors without losing the potential for returns. The following three strong pillars underpin our approach: dynamic risk management, a growing Warranty Fund and a short-term trading strategy with limited market exposure.

Dynamic risk management based on market volatility

Financial markets are constantly changing. Sometimes calm, sometimes full of unexpected fluctuations (volatility). This is why Yieldfund works with a dynamic risk management system that adapts to market conditions.

This system analyzes real-time market data, such as volatility (the degree to which prices move up and down), and then automatically adjusts the amount of capital the algorithm deploys. When volatility is higher, the stakes are reduced to reduce risk. Under stable market conditions, the allocation can be increased in a controlled manner.

In this way, we prevent the system from taking too large positions at unfavorable times, and structurally keep risk under control without missing opportunities when the market works in our favor.

Warranty Fund: additional protection on capital

Warranty Fund

Cirkel Percentage

0.00%

The warranty fund acts as an additional safety net, designed to hedge invested capital in the event of exceptional market disruptions.

Facts and figures:
✅ Currently, the Warranty Fund covers Laden… of total invested capital. This will reach 50% by the end of 2025.
✅ Every month the fund is automatically replenished.
✅ Coverage grows along with the platform.

For investors, this means that regardless of the performance of the algorithm, they enjoy additional capital protection for a significant portion of their investment.

Short trading cycles: less exposure to market volatility

An important factor in our risk profile is how we trade. Yieldfund uses high-frequency trading techniques, where positions are open for only 5 to 10 seconds on average. This means we are never exposed to market movements for long periods of time.

Although our algorithms constantly scan market opportunities, positions deliberately remain open for a short period of time. This reduces our risk of loss from sudden news releases, macroeconomic shocks or other unexpected events that typically have greater impact on longer positions.

In summary

Yieldfund combines:

A smart system that automatically reduces risk when volatility is high,
A Warranty Fund that now protects over Laden… of the total invested capital,
And a trading strategy with minimal exposure to market risk.

These three layers of risk management ensure that investor capital is protected in a structured, professional and transparent way.