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How are Investment Funds Selected?

Mad3nCh1na 1 year ago in A problem with investment program • updated by Genesis Vision Support 1 week ago 13

Lets say for example a manager has a limit of 500 GVT.

If the First person to invest invests 400 GVT

the Second Person Invests 150 GVT

and the Third Person Invests 100


Total of 650 GVT wanting to invest


How will this get get allocated?



Or will there be a sort of "averaging" effect? 500/650=.769


Where First person gets 307 invested

Second, 116

Third, 77


304+116+77=500


Resulting in a total of 500 invested from 3 different people. 




Answer

Answer
Under review

Hello! Investment requests are processed on a first come, first served basis. In future, you won't be able to make an investment request if the manager doesn't have available tokens. But you will be able to subscribe to any program you like and get notifications if available tokens appear.

i think it is purely first come first basis. First persons 400 and second person 100 will get 

What I'm saying is that it should not be first come first serve. It should be a weighted average of the invested funds, this way everyone will be able to invest a portion proportional to their desired investment amount.

Lol, it doesn't make any sense that way. What if about 10,000 investors deposit considerable amounts of GVT into a programme. You expect the funds to be divided into peanuts? Lol.. 


Anyway, I think the first come, first served technique is ideal for it. The only feature I want added is an instant notification system that will alert investors that a manager has reached his/her cap. Or better still, display the number of investors needed for a particular programme to be filled. This way, investors would not have to wait for months only to be informed that his previous month's deposit had been declined.

What if you are making up a hypothetical scenario to support your argument that doesn't exist right now and is not foreseeable to exist in the future? 


I don't see why 10,000 investors would line up to invest with a manager with a low manager level, your argument makes no sense. 

For a level 7 manager, whose cap is $1M, it is possible to support 10,00 investors or even more, and in that case it wont be divided in to "peanuts" either. 

Lol, 10,000 is nothing when the platform is fully established. Well, the difference between the two of us is that while I put the future into consideration, you are greedily and myopically concerned about the alpha without due regards to the imminent growth of the platform. 


That said, the first come, first served idea is simply the best whichever way you look at it. 


Lastly, I will suggest you read my earlier post again, but this time, a bit slow.

If in fact 10,000 people do apply for the same program, and their investments get divided into "peanuts" through the weighted average approach I proposed, it would be a effective disincentive mechanic for investors to concentrate their funds in an over-invested program. Thus solving the problem all together. This allows market economics to determine appropriate equilibrium.

10,000 to 1 investor to manager program ratio actually is very high. This would not be a good development for the platform as it would mean a shortage of managers. First come first serve just promotes people to run bots to automatically sign up at the end of the program. 

That is why the team, in their wisdom, established an internal exchange where these tokens can be traded. In other words, if you missed your favourite trader's token, you can always buy it from the internal exchange. 


As regards your complaint concerning investors buying tokens with bot, I am not sure if it's possible from the INVESTOR'S end, although I am absolutely aware that TRADERS can use bots. However, if you have any proof, let me know. Because I don't think the team will allow investors to purchase tokens with bots.. 

When I mean bot, I mean a person can use a recorded macro on the desk top to "click through" and invest a certain amount at a specified time. There is no real way of preventing this since it is executed external of the website. '

 
The internal exchange is not up yet, perhaps this would resolve the issue. However, this may still give those "first round" investors an advantage as the secondary market might be higher than the initial manager token price. 

You don't know what you are talking about.

You could literally google it and find tons of ways to create macros. 



Answer
Under review

Hello! Investment requests are processed on a first come, first served basis. In future, you won't be able to make an investment request if the manager doesn't have available tokens. But you will be able to subscribe to any program you like and get notifications if available tokens appear.