[ANN][ICO] Hedge.pro - insuring the cryptocurrency rate

[HedgeCoins]

Pre-sale successful

Due to the involvement of the private investor, we close pre-Sale ahead of schedule!
The received means (150k euro) will be spent for marketing, LX and for other points registered in WP.
Thanks everybody, who invest us.
We invite everybody to ICO!

[HedgeCoins]

The future of financial infrastructure
An ambitious look at how blockchain can reshape financial services from World Economic Forum and Deloitte

The future of financial infrastructure

1. Future-state process description Loss information is submitted by the insuree or smart asset (via sensors or external data sources if the asset is technologically capable), triggering an automated claim application
2. For insurance policies issued via a smart contract, insurees receive feedback regarding initial coverage in real time
3. Claim due diligence is automated via codified business rules within the smart contract, using information submitted by the insure
4. Blockchain automatically utilizes secondary data sources to assess the claim and calculate the loss amount
5. Depending on the insurance policy, a smart contract can automate the liability calculation for each carrier where a syndicate (or insurers or reinsurers) exists
6. In predetermined situations, the smart contract can trigger an additional assessment of the claim in order to reach a final decision/calculation
7. If the claim is approved, payment to the insuree is initiated via a smart contract


Future benefits:
- Simplified and/or automated claim submission: through a smart contract, the claim submission process will be simplified and/or fully automated (in cases of smart assets)
- Enhanced customer experience: through the streamlined transfer of loss information from insuree to insurer, DLT eliminates the need for brokers and reduces claim processing times
- Automated claim processing: business rules encoded in a smart contract eliminate the need for loss adjustors to review every claim (functionality will enable the loss adjuster to review the claim and provide a decision, in specific risk situations)
- Reduction in fraudulent claims: the insurer will seamlessly have access to historical claims and asset provenance, enabling better identification of suspicious behavior
- Integrated data sources: Blockchain facilitates the integration of various data sources from trusted providers with minimal required manual review
- Streamlined payment process: in most cases, the smart contract will facilitate the payment automatically without effort from the back office.

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HEDGE.PRO

[HedgeCoins]

Kinds of currency risks

According to economics theory, hedge is an instrument used to insure the risks of uncertainty and high volatility of currency rates. The currency risks can be divided into 2 groups:
1.   Economic risk – long-term influence of currency rates on competitiveness of a company and its cost as a result.
The are two sources of an economic currency risk:
a)   Direct – for the export company the strengthening of the national currency can be the reason of the increase of the cost of the product or the existing margin reduction. It is possible that the share of the market and profitability will decrease for the company;
b)   Indirect – the change in the currency rates of the countries where the main competitors are located can vitally influence the competitiveness of the company on a particular market;
2.   Translational risk – a risk of a negative currency reevaluation in the base currency during the consolidation of the financial statements of abroad subsidiaries into an overall financial statement;
3.   Transactional risk – a risk of currency rate change from the moment of signing the agreement  until the payment in the foreign currency. This risk appears between the budgeting date/date of signing the agreement and the date of calculation made in the foreign currency. This kind of risk directly influences the cash flow of companies, and companies more often use hedging instruments to insure it.

Hedging can’t fully compensate the losses connected to the currency fluctuations, but it allows the company to increase its reserves of upcoming purchases and helps the management staff to concentrate on business aspects in which the company is competitively superior.
That’s why creating hedging instruments on Hedge.Pro helps the investors all around the world to acquire one more beneficial insuring instrument.

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[FundMonster]

What are hedging strategies you use for project?

[HedgeCoins]

Hedging strategies

Depending on possible aims there these types of hedging:
1.   Classic;
2.   Arbitrage;
3.   Selective;
4.   Anticipatory.
The classic (clean) hedging is implemented only  to insure the price risks. In this case futures market operations’ dates and quantities are equal to the one on the over-the-counter.
Arbitrage hedging is implemented mainly to finance the costs of goods storage. It is based on income acquisition during the favorable change in price ratio of the real product and exchange quotation. With the normal market this type of hedging covers the required costs. This type of operation is practiced by trading firms.
The selective hedging assumes that the futures market deal won’t be implemented at the same time as the deal on the over-the-counter market; the quantities are not the same too. This type of hedging is implemented with the aim of gaining income from operations (normally the hedge “destroys” it).
The anticipatory hedging is implemented in case of purchase or selling of the futures contract until the deal with the real product is made. The last 2 types of hedging are widely used by all kinds of firms. Large companies also use multiplied selective hedging that is implemented multiple times during 1 industrial cycle on one consignment depending on the prices fluctuations risks increase or decrease.

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