KRIP.TO a new automated trading platform for arbitrage between exchanges

[gotmilk_]

Hi - Definetly you addressed some very good points thansk for feedback.

isn't this new strategy more risky for investors? Since now you have full control over the money (not only trading control via API key)

Well yes but then again you're able to expose less funds that you would normally by providing api key access to minimize risk. Also results are way better with having one big account. So it's a gamble you take if you want.

mean in most countries it is prohibitted to trade with money from other people while you don't have a money transmitter licene.

That is true - you need license to be able to trade in the name of others - so there are three options here - either get a partner on board who already has such license or open a limited liability company and allowing the initial purchases of the ICO to become and investment in to the company in this case such funds can be used for trading - there are conditions that are agreed upon both parties obviously.
You get the license yourself - but here can get tricky as obviously the whole point is to be cost effective.

Investor funds stay in the original currency while trading — no conversions.

How can you do eg. USD/BTC arbitrage, if someone invested ETH or anything? You have to convert the funds, otherwise you can't trade with it.
This looks like scam.

You're wrong sir. Well you can't trade usd/btc with eth naturally - but you can trade USD/ETH with no problem with no conversion . This is what we meant when saying limited investment you raise exactly the funds you want to use for trading rather than converting them. Keep it clear,simple and transparent.

Definitely there is a credibility and trust card that will convince people that you will not just run away with money - you can resolve this by inviting credible members from crypto community in to advisory board.

Regards,

edit: forgot to answer questions regarding guarantees. Well obviously crypto world usually does not provide a lot of guarantees but we adjusted the strategy to be as clear and as predictable we can. And in the end you still get a token that comparing to other projects brings some predictability and safety. Atleast you know what youre getting yourself in to as it stands on a working well tested alghorythm.

Ofcourse there is always a chance that something happens to the exchange over night  (worst case scenario) - like bitfinex hack we've been through that and basicly having multiple exchanges in use actually prooved to be good as we diversified funds - so only profit was touched. There are also other strategies that minimize such risks by only having funds that are needed for the next 1 hour to be on exchanges other are stored in private wallet etc...

Hope i answered your questions.

[Zeega]

This is a great idea!

Regarding the legal issue of trading with investors' money - I think the best way would be to issue a token and then pay some sorts of "dividends" from doing arbitrage with the whole fund, based on number of tokens each investor holds. How to actually pay out these "dividends" is the next issue to solve... Nevetheless, that way I think you would avoid getting brokerage house licence.

[Serpens66]

have another question:
What if an exchange where you have majority of your funds is hacked?

So let's say half of all investements are gone.
What do you do? Will you pay it from you own money?
What if you do not have enough money to cover losses?

[gotmilk_]

Hi Everyone - it's been a while since I asked you guys regarding arbitrage fund ICO - since then a lot has happened and this exact idea brought us in to a much larger project with arbitrage at its base of course. I would like to invite you all to check out this post: https://bitcointalk.org/index.php?topic=2212650.0 . The ICO is powered by KRIPTO's arbitrage technology so it's a big deal We will make sure that investors - will have a money making product from the start of this huge project - which will provide a base for the value of token in early months until we put more products online.

As you will see project aims quite high - we put together experienced team of experts each from their own fields. KRIPTO covers the crypto world part - Let me know what you think.

[gotmilk_]

have another question:
What if an exchange where you have majority of your funds is hacked?

So let's say half of all investements are gone.
What do you do? Will you pay it from you own money?
What if you do not have enough money to cover losses?

Sorry for super late reply: - but this can be avoided or atleast mostly mitigated by using special strategy where you never keep more than 50% funds on exchanges plus it has to be spread out evenly - in such case you only loose small part of funds.

Also you don't pick exchanges that are not controlled properly or licensed etc.. or are not trustworthy - most bigger exchanges bitstamp,kraken, gdax, etc are capable to undo the damage if it happens for example.

So minimize exposure, don't keep big sums on one exchange, pick good exchanges, make sure you're accounts are safe, make sure investors are aware of the risks and they accept them.

for example: You say to clients that max loss could be 25%. And either they accept this or they don't participate.

Cheers