Investment Mechanism Based on the PnL Index
Depositing USDT: Investors participate by depositing USDT to the AIIA Finance platform. As explained previously, this purchase represents an investment in the underlying trading fund.
PnL Index Updates: The PnL (Profit and Loss) Index is updated every 4 hours, providing a regular snapshot of the fund's performance. This index reflects realized gains or losses from the trading activities. It's crucial to understand that the PnL Index reflects actual trading outcomes, not just paper profits.
Profit/Loss Calculation: When the PnL Index changes, the investor’s profit/loss is calculated by multiplying the difference between the PnL Index at the time of purchase and at the time of sale by the amount of investment for every position they are holding.
AIIA Finance offers a staking program for AIIA token holders. By staking AIIA, investors can earn an annual interest rate of 5%. The minimum lock-up period for staked AIIA is 3 months. This staking mechanism provides a passive income stream for AIIA holders and incentivizes long-term holding of the token.
Flexible Trading Capital: The PnL fund now operates with a flexible trading capital model that adjusts according to the total capital contributed by investors. While the trading capital expands or contracts based on investor contributions, it adheres to a strict maximum cap of $10,000,000, as established by AIIA Finance’s Portfolio Management standards. This adaptive framework ensures that capital allocation is directly aligned with the actual assets under management, enabling the fund to seize trading opportunities and manage risk effectively. Should the total investor capital fall short, AIIA Finance can promptly reallocate resources or inject additional funds to maintain seamless trading operations, ensuring continuous trading operations within a controlled, yet highly adaptive environment.
Profit Sharing: The sharing of profits between investors and the platform depends on the method by which they deposit.
Standard Profit Sharing: If no preferred policy is applied when depositing, the profit is divided as follows: 75% for investors and 25% for the platform.
Preferred Policy Profit Sharing: If an investor utilizes one of the preferred purchase policies (e.g., stake a required level of AIIA to qualify), the profit split is more favorable: 80% for investors and 20% for the platform. This incentivizes the use of AIIA within the ecosystem and rewards active participation.
Platform's Share: The portion of the profits allocated to the platform is used strategically. A portion covers the operational costs of AIIA Finance, including staff salaries, infrastructure maintenance, and other expenses. The remaining portion is then allocated to the buy-back and burn mechanism for AIIA tokens. This reinforces the deflationary nature of the AIIA token and potentially increases its value over time, benefiting all AIIA holders. This system creates a sustainable cycle where platform profitability directly contributes to token scarcity and potential value appreciation.
Imagine an investor who decides to invest in AIIA Finance. He or she deposits $10,000 when the PnL Index is at 120. The investor also chooses to lock in their position for one year, earning a 5% annual interest rate. One year later, the PnL Index has risen to 200, indicating a significant positive performance by the trading fund.
Profit Calculation:
PnL Gain: The investor's gain from the PnL Index increase is calculated as follows: (200 - 120) / 100 * $10,000 = $8,000
Staking Interest: The investor also earns staking interest on their initial investment: 5% * $10,000 = $500
Profit Sharing: Let's assume the investor qualified for the 80% profit-sharing benefit. The final profit after profit sharing is: 80% * 8,000 + $500 = $6,900
Return on Investment (ROI):
The investor's final ROI is calculated as:
($6,900 / $10,000) * 100% = 69%
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