🪟Transparency & Risks

mBASIS Transparency

  • USDC transferred to acquire mBASIS are initially held through Fireblocks, a leading custodian technology.

  • Midas invests the assets in a Basis Trading strategy via a top-tier asset manager.

  • Midas shares the portfolio composition weekly. This data is reported on Midas’ website.

mBASIS Risks

Investing involves risks, including possible loss of principal. Before buying mBASIS, it is best to research and understand the risks involved.

Midas prides itself on minimizing the risks of principal loss:

  • Bankruptcy protection measures are taken, like using an SPC structure.

  • A seasoned regulated Asset Manager executes the strategy.

  • Only premium crypto exchanges are used within the strategy.

Here are some of the risks involved:

  • Crypto Exchange: When opening positions on crypto exchanges, your assets are exposed to the operational abilities and solvency of this crypto exchange.

  • Execution: When trading cryptocurrencies, price impact, and volatility may occur and negatively impact the portfolio's value.

  • Negative funding rates: While mBasis will typically accrue PNL from receiving funding payments, in certain market regimes, the funding rate might consistently begin charging short positions due to the dynamics of the market during downturns. Asset managers will manage these positions to minimize drawdowns realized through negative funding rate charges incurred.

You can learn more about the risks of mBASIS by reading the Terms & Conditions.

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