Frequently Asked Questions
1What is Arbitrx?
Coin Connect LP. (“Arbitrx”) is the largest digital currency asset, manager. Arbitrx provides opportunities for investors to gain exposure to the digital currency asset class. Arbitrx is the AMC trade in Bitcoin and other crypto-assets and the manager of Coin Connect LP.'s Funds collectively referred to herein as the “Products”. Any Product currently offering share creations is referred to herein as an “Offered Product”.
2What are Arbitrx’s Investment Products?
The Products are privately offered investment vehicles available to institutional and accredited individual investors through their respective private placements. Arbitrx’s single-asset Products provide exposure to Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Horizen (ZEN), Litecoin (LTC), Stellar Lumens (XLM), XRP, and Zcash (ZEC). Arbitrx’s diversified Product, Arbitrx Day Trading Fund, provides exposure to the top liquid digital assets by market capitalization and currently holds BTC, ETH, XRP, LTC, and BCH. Each Product’s investment objective is for the value of its shares (based on digital assets per share) to reflect the price performance of such Product’s underlying digital asset(s), fewer fees, and expenses. Modeled after popular commodity investment products, each Product was created for investors seeking exposure to digital assets through a traditional investment vehicle.
3Why should I own shares of the Products over purchasing digital assets outright?
The Products offer the benefits of investing in digital assets without having to purchase, transfer, and store digital assets themselves and manage additional individual accounts, wallets, and private keys. The Products were developed to offer investors ease of mind and an investment product that is familiar to both financial advisors and investors. Ease and Peace of Mind Often, individuals and institutions seeking to directly purchase or sell digital assets must themselves transact via unfamiliar exchanges or intermediaries that in some cases may be unregulated and/or insecure. This often requires investors to transmit funds to jurisdictions where they might not be comfortable. In addition, storing digital assets on one’s own can add additional risks, as the private keys (the digital asset equivalent of passwords) which ensure access to an investor’s digital assets can be susceptible to lose or theft. This potentially exposes one’s digital asset position to partial or total loss, often with limited or no recourse to regain access to digital assets. In contrast, by investing in shares of the Products, investors avoid the challenges of purchasing, transferring, and storing digital assets on their own, and instead pass these tasks onto Arbitrx and each Product’s service providers while maintaining their exposure to the price performance of digital assets. Each Product’s underlying assets are safeguarded with robust security procedures that include offline storage, or “cold” storage, multiple encrypted private key shards, usernames, passwords, and 2-step verification. Cost-Effective Order Fulfillment Purchasing large orders of digital assets can be challenging. Few digital asset exchanges and order books can reliably fill large orders without significant price slippage. Depending on the timing and size of the transaction, a trade on a given exchange could move the market materially. Each Offered Product’s authorized participant executes large purchase and sale orders through exchanges and over-the-counter transactions to create shares for investors at a blended daily average price based on the following digital asset reference rates: Product Digital Asset Reference Rate Arbitrx Bitcoin Fund (ARBITB) Trade Bitcoin Index Arbitrx Day Trading Fund (ARBITD) Trade all Market Index Arbitrx Large Cap Fund (ARBITL) Trade top 10 Market Arbitrx Mid Cap Fund (ARBITM) Trade top 30 Market
4What are the Products' fees?
Each Product charges an annual administration and safekeeping fee, as indicated below, which accrues daily. We expect this fee to be the only ordinary recurring expense for each Product. For further details on each Product’s fees, please review each Offered Product’s Private Placement Memorandum or each Product’s annual and quarterly reports, as applicable. Product Fee ARBITB 2.0% ARBITD 2.5% ARBITL 2.5% ARBITM 3.0%*
5How much does Arbitrx cost?
We charge a 2% fee. Our users keep all their returns.
6How does Arbitrx protect my Money?
Arbitrx only uses API keys for trade access, which are protected by non-withdrawal. This means nobody can withdraw funds from our account. We encrypt all user data on our end with cryptographically secure hash functions. In addition, we engage in penetration testing and monitor logs to shut down trading in the case of suspicious activity.
7Does Arbitrx take deposits?
Yes. Arbitrx is a tool, not an exchange. All the money you deposit will be located in cryptocurrency on Coinbase Pro, Binance, or Kraken, connected to Arbitrx platform.
8What kind of strategies can I choose?
You can choose the index funds ARBITD, ARBITB (Small Scale Investors Min-$100) & ARBIT10, or ARBIT20. ARBIT30 (Institutional Large scale investors Min- $25000) for more info check out the Funds Page.
9What happens after I activate a strategy?
Arbitrx will execute the trades within 12 hr on the exchanges so that your portfolio will match the composition of the strategy you've chosen.
10What are the Arbitrx Indices?
The ARBIT indices are total market indices designed to track the performance of the entire cryptocurrency market. Historically in equity markets, 80% of active professional traders fail to beat the index. We created the ARBIT indices to act as a sensible starting point for our users.
11How does Rebitrx re-balance my portfolio?
Arbitrx rebalances your portfolio by intelligently making a series of trades to get you towards your target allocation. The default period depends upon the type of fund which can vary from one week to one month.
12Does Arbitrx charge a transaction fee for trades?
Arbitrx does not charge any transaction fees. We only charge 2% on fund withdrawal.
13Does Arbitrx trade everything from my investment?
Yes. When you use Arbitrx, it will execute the strategy with all of the holdings in our exchange accounts. If you wish to actively trade, you should do it on another exchange account, or an exchange sub-account.
14What is the account minimum?
We recommend $100 to protect users from minimum trading limit and make sure that diversified portfolios can be created properly.
15What are the tax implications of using Arbitrx?
In certain jurisdictions, buy & sell actions on exchanges are taxable events. To comply with tax regulations, you will be able to export a log of Arbitrx's transactions in csv format.
16Why does my composition not match my target portfolio?
If your portfolio size is under the recommended amount, we may not be able to execute the required trades to match your account with your target portfolio. This is due to minimum trading limits imposed by exchanges
17Why did my portfolio re-balance not do anything?
Rebalances reset your portfolio towards the target. If your portfolio hasn't deviated enough from the target, and your portfolio size is not massive, we may not be able to execute any rebalancing trades due to minimum trading limits imposed by exchanges.
18What is the best re-balancing period?
After backtesting 10,000 cryptocurrency portfolios, we found that there is no best rebalancing period. Anything between 7-90 days is reasonable. Check out our study at strategy Page.