The idea behind investing in a strategy or a bot is two-fold
- It should make money
- If the markets go down, it should protect you from losses
This is the promise of Mudrex. Every investment option published on Mudrex Invest goes through rigorous testing by the creator and a multi-part review process by the Mudrex Team before being published so that we can make sure that this promise is upheld. Not only this, but all strategies are also constantly monitored for improvements by both the creator and the Mudrex team.
Despite going through multiple checks, there is no guarantee of returns for any of the investment bundles. This is because no one can predict the market and there is an inherent risk in investing in volatile assets.
Creators cannot predict every kind of market condition and hence cannot prevent all losses but what they can do is not charge their own fee for the months when you have losses. Mudrex ensures that the creators only collect their fees if the investors make profits in a period specified by the creator. If not then Mudrex will refund the investor their subscription fees. This feature is called Mudrex Protect.
How it works for investors:
- We want to make sure that you pay fees only when the promise of the strategy is fulfilled. This means that we should charge only if the strategy makes profits for you or stops you from making losses in a crashing market.
- Mudrex protect is only eligible on those bundles where the creator has opted in
How it works for creators:
- Mudrex Protect is an opt-in feature from the creator’s side
- Mudrex will collect and hold any fees paid by the investors to the creators till the end of the month
- If the strategy makes losses then any subscription fees collected from the investor in the month are refunded back to the user.
- The creator can enable or disable this option as they like. Whether the option is applicable to an investor or not will depend on when they invested.
Frequently Asked Questions:
Will Mudrex Protect be available for every bundle on Mudrex Invest for investors?
Ans. No. This is an optional feature that the creator will decide while publishing a bundle.
How will Mudrex measure that there was a loss?
Ans. As soon as a bundle is published, there is a common master run that is started which keeps running which is the primary source of buy and sell signals. We will use that as our reference to measure profit and loss. This is done to avoid any issues that might happen because of investor actions or unforeseen external issues and keep the decision-making process consistent.
Does the 'Loss' include fees paid by the investors?
Ans. Yes. The loss will be looked at a net of fees paid to the creator.
How will Mudrex manage the fee payout to creators who want to allow Mudrex Protect?
Ans. Mudrex will hold the funds for the month and make a payout to the creator at the end of the month only if Mudrex Protect is not eligible.
Will the investor get subscription fees back if they exit before the month is over?
Ans. No. If an investor exits before the month is over, then they will not be eligible for a fee refund.
Will the investors’ trading losses be covered?
Ans. No. Trading is not risk-free. No one can guarantee that there will be no losses. The historical and live performance that investors use to judge an investment option is only an indication of how future performance can be.
When investors face a loss we believe that we did not add any value to their lives and are morally obliged to return the subscription fee we charged them. That is the best that we can do and that is what we adhere to.
How can an investor apply for a refund under Mudrex Protect?
Ans. The payout for Mudrex Protect refund gets issued automatically at the end of every month. In case you are eligible, you will get the payout in your account as Mudrex Credits!
What is zero return in a month counted as?
Ans. Zero returns are also eligible for a refund.
What happens if there is a loss on an investor’s personal run due to manual interventions by the investor, exchange failures, system failures, etc?
Ans. To decide if a refund needs to be given or not, we only refer to the master paper run on the bundle. This run is immune to any issues arising out of manual interventions from the investor side or any system failures. It will always have orders placed. This helps us remove any ambiguity and makes the decision-making process transparent.
What happens to referral credits for a user who is given a refund under Mudrex Protect?
Ans. Since no revenue is made by Mudrex in these cases there is no referral incentive.