1. What is Quant Fund?
Quant Fund caters to conservative, low-risk investors. Its main source of return is market-neutral arbitrage strategies.
2. What is the difference among various Quant Fund products?
All Quant Fund products employ market-neutral arbitrage strategies. The differences lie mainly in the trading teams. Each team may choose different trading pairs and execute strategies differently, resulting in varied returns.
3. Is there a lock-up period for Quant Fund products?
There is no lock-up period, and you may subscribe or redeem at any time. However, historical performance suggests that long-term holding typically leads to higher returns. In Q1 2024, the annualized return of the USDT Quant Fund was as high as 31%.
4. Will Gate charge additional fees?
Currently, Quant Fund products are in the promotion phase, and Gate does not charge management fees or other product fees. However, the trading team will charge 30% of the return as a performance fee.
5. How to calculate returns?
Positions held for less than 48 hours will not generate a settlement on positive returns.If there is a loss, the loss will be settled based on actual NAV.
If the return is positive: Settled NAV = NAV Per Unit at Subscription × Initial NAV × (Subscription Amount / NAV at Subscription)
If the return is negative: Settled NAV = (NAV Per Unit at Withdrawal − NAV Per Unit at Subscription) × Initial NAV × (Subscription Amount / NAV at Subscription)
For positions held longer than 48 hours, 30% of positive returns will be charged as a performance fee. If there is a loss, settlement is based on actual NAV.
If the return is positive: Settled NAV = (NAV Per Unit at Withdrawal − NAV Per Unit at Subscription) × Initial NAV × (Subscription Amount / NAV at Subscription) × (1 − Performance Fee)
If the return is negative: Settled NAV = (NAV Per Unit at Withdrawal − NAV Per Unit at Subscription) × Initial NAV × (Subscription Amount / NAV at Subscription)
6. What is the source of return of Quant Fund?
Suppose the BTC price is 20,000 USDT and the funding rate is 0.03%, and you use 4,000 USDT for funding rate arbitrage.
- You buy 2,000 USDT worth of BTC (0.1 BTC) in the spot market, and short the same amount in the Perpetual Futures market.
- If the funding rate remains the same and is settled every 8 hours, your 8-hour return will be calculated as 2,000 × 0.03% = 0.60 USDT.
- Your daily return will be 0.60 × 3 = 1.80 USDT, and the annualized return will be (1.80 × 365) ÷ 2,000 = 32.95%.
7. Is there any threshold for subscribing to Quant Fund?
Currently, the minimum subscription amount for USDT Quant Fund is 5,000 USDT. Gate may adjust the threshold to meet broader user needs. Please stay tuned for upcoming announcements.
8. Does the Quant Fund product guarantee the principal?
Gate's Quant Fund does not guarantee the principal. However, since its launch, there has been no occurrence of operating losses.
9. How risky are Quant Fund products?
Quant Fund products carry very low risk. The maximum daily drawdown for USDT products is 0.1% . Historical data shows that long-term holding yields significantly better returns. In Q1 2024, the annualized return of the Quant Fund USDT product reached 31%.
- Are the returns on Quant Fund products stable? Returns mainly come from funding rate arbitrage and spread arbitrage, and may fluctuate depending on funding rate changes.
11. How to view my returns?
After subscribing to Quant Fund products, you can go to [My Holdings] to view your real-time returns.
