Betoken
  • Betoken overview
  • Betoken investment cycle
  • Deposit & Withdraw
    • How to deposit your capital?
    • What is Betoken Share token (BTKS)?
    • Do I receive my BTKS immediately after purchase?
    • How can I see my BTKS balance in Metamask?
    • What is the lockup / liquidity of the fund?
    • How can I follow the activity of the fund?
    • What is the fees structure?
    • How do I make an additional capital connection, after I’ve already made an initial one?
  • Manage the fund
    • Betoken income simulation
    • How do I get started as a Betoken fund manager?
    • What is Kairo?
    • Do I receive my Kairo immediately after purchase?
    • Why is there a max Kairo purchase amount?
    • How can I see my KRO balance in Metamask?
    • How can I manage and follow the activity of the fund?
    • How is a basic order created?
    • How is a short order created?
    • How is a leveraged long order created?
    • What would cause a margin order to be liquidated?
    • How does risk threshold work?
    • How does the manager's monthly commission work?
    • How does Betoken punish huge manager’s losses
    • How does Betoken handle "dead" managers?
  • Govern
    • What is Betoken's upgrade governance process?
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  1. Manage the fund

How does Betoken handle "dead" managers?

As the bottom line for manager is participation rate, managers who have been inactive for 2 cycles or above will lose their entire Kairo balance. Inactivity is defined as not making any trade.

This measure is meant to solve two problems

If a manager joined Betoken with a relatively low initial Kairo balance, it's likely that they will lose interest and abandon their account, since they didn't put in much money to begin with. However, the stale Kairo owned by their account still represents control over some portion of the fund assets. This means that as the number of inactive managers rises, a non-negligible portion of the investors' capital will simply sit in the fund, not being invested in anything, which would negatively impact the efficiency of Betoken.

If a prominent manager with a large amount of Kairo unfortunately passes away, and they made no arrangements to pass on their manager account to someone else, the capital under their management will never be invested in anything, which may greatly reduce the efficiency of Betoken.

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Last updated 5 years ago

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