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. The creators constantly keep on improving these bundles. All options available on Mudrex invest are for a min investment period of 3-6 months and provide great returns over the long term.
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 creators:
- Mudrex Protect is an opt-in feature from the creator’s side
- Creator defines a min investment time period in months.
- Mudrex will collect and hod any fees paid by the investors to the creators.
- If over the said timeframe the bundle makes losses then any subscription fees collected from the investor over the loss-making duration will be returned back to the investors.
- 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.
How it works for investors:
- Mudrex protect is only eligible on those bundles where the creator has opted in
- The investor needs to stay invested for the entire of the min duration specified by the creator
- In the rare scenario that the investor does end up in a loss, the investor can claim a refund for their investment fee via the process mentioned below.
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.
Note: The loss is only trading loss only. A bundle that makes a small profit but still returns an overall loss net of investment fee then that will not be eligible for a refund
How will Mudrex manage the fee payout to creators who want to allow Mudrex Protect?
Ans. Mudrex will hold the funds for the Min investment period defined by the creator. Once the min period is passed for an investor, Mudrex will release those funds on a rolling basis.
Eg: Creator defines min period as 3 months. The investor is invested for 4 months. At the end of the 4th month, the creator will get the payout for the 1st month and so on. If the investor exits the bundle at the end of the 4th month and Mudrex Protect clause is not triggered then the creator will get the entire payout.
Will the investor get subscription fees back if they exit before the min investment period?
Ans. No. It is very common for a bundle to have a few loss-making trades/months here or there. What is not common is that it consistently makes losses. The min period which is defined by the creator accounts for. So if an investor exits before the min period is over the will not be liable for a fee refund.
Will the investors’ 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.