Financial Engineer

Investment company, founded in 2014 in Singapore


Financial Engineer is the founder and Manager of the funds Financial Engineer Digital Assets Fund SP. Financial Engineer Digital Assets Fund SP – fund that makes a profit from strategies related to the operation of cryptocurrency exchanges. The Fund's strategies are as follows

P2P margin trade lending

Available at Bitfinex

- P2P loans provided to those who wants to trade with leverage, exchange controls risks
- Open market with bids and offers
- Short lending periods (form several hours to several days)
- Rates defined by the market (supply and demand)
- Rates historically ranged from 3% p.a. to 300% p.a. in the periods of aggressive crypto growth
- Works best if automated (lending controlled 24/7 by trading software)

Derivative hedge

Available at Bitmex, Cryptofacilities,  Deribit
We hold long position in Bitcoins and hedge it via perpetual inverse BTC/USD swap
- Bitmex swap is a derivative contract which pay difference between USD and BTC money market rates
- Shorting it we, economically speaking, lend USD and borrow BTC
- Rates defined by the market (supply and demand)
- Rate can be positive or negative, but USD lending rate is dominantly larger than BTC rate Free BTC can also be provided to lending to boost performance

Interest rate arbitrage

Available at different combinations e.g. Bitmex/Bitfine
- At some moments of time lending rates can substantially vary on different exchanges
- For example, if funding rate for USD is very high on Bitmex, we can borrow BTC on Bitfinex and open short position in BTC/USD swap on Bitmex
- Hence, we receive swap funding rate which is much higher than what we pay for borrowed BTC
- Opening positions like this should be simultaneous and requires high level of automation