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ak0
@annanay
Founder and CEO @QFEX
Joined July 2016
791 Following    11.3K Followers
Some FAQs on our Managed Account: 1/ It is NOT an LP vault of the type found in other perp dexes. LP vaults are typically a profit share on a zero-alpha internal market maker PnL. They have the obvious downside that if the LP returns are good, users are necessarily being ripped off on spreads and/or liquidations. Our Managed Account is a genuine mid-frequency equities strategy of the type run at major quant firms, with full-time staff working on constant iteration and improvement. Its AUM is limited only only by liquidity on the exchange, and therefore, by our ability to attract makers who can hedge in traditional markets. Since we launched the product, liquidity on Managed Account symbols has 5x'd during US hours. We expect similar improvements out of US hours as we launch different strategies there. 2/ Managed Account actually incentivizes us to IMPROVE liquidity. The strategy works on a 0.5bps slippage assumption. This is why we have gate-kept access for now, to ensure that we can attract more market makers as volume scales. 3/ We are running an exchange, not a fund. Our aim is to produce flow, attract market makers, and reach escape velocity on liquidity. Accordingly, in this early phase, Managed Account runs on ZERO taker fees, ZERO management fees, and ZERO performance fees as we focus solely on scaling volume. The backtest assumption was 1.5bps taker fees, and we will increase fees at some point, but right now, we are focussed on the best possible execution as we build our track record.
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