The Invictus Margin Lending Fund offers investors the ability to take advantage of the volatile nature of the
cryptocurrency market without risking direct exposure. The fund aims to maximize interest income on USD and USD
equivalents with zero anticipated drawdown risk. Fund returns have low or negative correlation to the S&P500, VIX, GLD
and TNX and is thus an excellent portfolio diversification tool.
Historical margin lending returns have been in the region of 13- 28% per annum on USD and various cryptocurrencies backed by, or pegged to the US dollar - such as TUSD
(Trust USD) and USDT (Tether).These are generally referred to as ‘stablecoins’. Average annualized daily rates for USD
in this capacity on Bitfinex have been in excess of 16% for the past 12 months from time of publication, recently
spiking as high as 40% in the month of July 2019. Traders borrow these assets primarily for leverage trading via major
cryptocurrency exchanges. Demand is strong and growing - several platforms have recently introduced margin trading
functionality or increased the maximum leverage available to traders. Bitfinex, a single exchange, has over $300m
utilized in USD and USD equivalent margin loans at any time.
Interest on lending these assets is paid daily which leads to favourable compounding. The primary risk is counterparty risk which can be mitigated by diversifying across
stablecoin assets and exchanges. Market volatility is also an important factor as demand for USD, USDT and other
stablecoin assets are driven higher by volatile crypto markets.
Returns are not correlated to the performance of any major index such as the S&P500 and thus the fund is well suited as an effective portfolio diversification tool. In
comparison to the mean (6.74%) and median (11.39%) returns of the S&P500 over the past 10 years - which include drawdown
risk and exposure to black swan market events, the Margin Lending Fund offers an attractive, uncorrelated return profile
with deep liquidity.
At Invictus Margin Lending, we believe that blockchain technology will radically transform the future of asset management to the benefit of investors globally. We are pioneers in the space, having created a secure management and distribution platform that significantly improves costs and transparency.
Through our innovative funds and our very own investor platform, we provide investors worldwide with democratised investment access. With our products, we create high-return investment opportunities that everyone deserves.
Low risk investments :The stablecoin lending market yields high interest rates by providing short-term, collateralized
loans to traders, thereby creating a wonderful opportunity for passive investment. These loans are liquidated before any
losses are realized, leaving the fund with no anticipated downside risk.
Passive investments with good liquidity :You will never wait more than a day to have withdrawals processed or deposits
enter the fund. These transactions are processed daily at 11:00 UTC.
We optimize investment strategies within the nascent world of cryptocurrency and decentralized finance — helping to both build out innovative investment products, and optimize the performance of current offerings. Our team of investment professionals has a wealth of expertise in both traditional and alternative investments. The team includes the former Chief Data Scientist as well as the former Head of Derivatives Trading for two large global banks. We hire the most talented data scientists, engineers, and financial analysts.