Example Case

CryptoHelp offers the fund managers to create their own agreement by specifying the:

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• duration 
• target return rate
• collateral rate
• collateral amount 

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The clients can then browse through the different agreements made by different fund managers and choose the one that fits their risk profile.

To better understand how CryptoHelp works, pay attention to the example case below.

A client owns $1000 and wants this fund to be invested into crypto by using a fund manager on CryptoHelp. After looking at the risk profile, and other details of each agreement, he decided to use an agreement made by a fund manager to manage his investment.

Here are the details of the agreement:

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After the agreement was activated, both the client’s $1000 and the fund manager’s $800 are now locked in the smart contract. The fund manager now has control over but does not own the client's $1000 under the smart contract. This $1000 can be traded on Uniswap or PancakeSwap, a decentralized exchange platform for crypto investment, during the duration of the contract.

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After the 6 months contract duration, the profit/losses are split according to the initial agreement. The contract ensures the following possible outcome:

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This dramatically reduces the client’s risk because if the fund manager loses all of the $1000, with the collateral rate of 80%, the client will still receive his $800 after the contract ends. This will create peace of mind for the client, knowing that he won’t be losing all of his money in the worst case of the fund manager losing them all during the contract duration.

At a glance, it might seem that the fund manager is placed at a great disadvantage to use CryptoHelp as a fund manager. However, the situation will reverse when the fund manager hits the target consistently and achieves a high track record. This feature provides the fund manager with a very high incentive to gain a good track record to secure future investments and receive their profit.