Avareum
  • Introduction
  • Why Avareum?
  • How Avareum Works?
    • Fund Operations
    • Fund Subscription
    • Fund Redemption
    • Fund Rebalancing
    • Fee Management
    • Strategy-Aware Assets
    • Fund Tokens
    • Price Oracle
    • Risks and Mitigation Plans
  • FAQ
  • Investment Strategies
    • Introduction
      • Decentralized Finance
        • Features of Decentralized Finance
        • Decentralized Finance Architecture
        • Decentralized Finance Category
        • DeFi Service Incentive Scheme
      • Stablecoins
    • Avareum Stable Fund
      • Investment Objective
      • Investment Vehicles
      • Eligibility
        • Stable Asset Eligibility
        • Protocol Eligibility
        • Layer 1 Protocol Eligibility
        • Layer 2 Protocol Eligibility
      • Asset Allocation
    • Risk Management
      • Risk Identification
  • Tokenomics
    • AVAR Token
      • Advance Funds Investment Right
    • Token Allocation
      • Token Valuation
    • Token Auction Mechanism
    • Avareum Fundamentals
      • Supply Mechanism
      • Demand Mechanism
      • AVAR Burning Rate
      • Valuation Framework
    • Incentivization and APR
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  1. Investment Strategies
  2. Avareum Stable Fund

Eligibility

To ensure that assets or protocols chosen for the investment are safe, the fund has set up a risk scale from 3 factors: operational risk, financial risk, and adoption. Each of these factors can be broken down further into different sub-factors.

The chosen sub-factors are the factors that are independent of each other to avoid having bias when giving scores. The scores range from 0 (highest risk) to 5 (lowest risk). First, each sub-factor score will be used to calculate the mean, used as a risk score for its main factor. Then, the overall risk factor score will be calculated from the main factor scores.

If an asset or protocol has an overall risk score below 2, it will not be used for investing.

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Last updated 3 years ago

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