High-risk kuais are now available
After several months since the commercialization of the medium risk kuais, the long-awaited high risk licenses (HR kuais) have come to light.
In this way, Kuailian completes its license offering with the three configurations: Low Risk, Medium Risk and High Risk.
The philosophy is the same for all three products. Obtaining returns through the purchase of Master Nodes to verify transactions of different cryptocurrencies or other Staking technologies.
The difference lies precisely in the type of Master Nodes to which each of the products is addressed.
How is a Master Node risk measured?
Most Master Nodes have a predetermined and public profitability that can be consulted here.
Thus, a conservative Master Node, like Dash, has a return of approximately 6% per year, which is not too much.
In exchange, Dash is a cryptocurrency with not very high volatility (always speaking in terms of the cryptocurrency market, which is inherently volatile), and with high liquidity. This means that Dash is a currency that can be easily sold, since its market is high.
This is important because if we consider, for example, recovering the initial capital at the end of 1,000 days, the conservative Master Nodes tokens will be easily liquidated.
On the opposite side we find the most aggressive Master Nodes, whose profitability can be infinitely higher, in some cases even greater than 10,000% per year. But in return, because its market is much smaller, the value of the currency is extremely volatile and its liquidity is much lower.
This may mean, in case of wanting to liquidate it, either because Machine Learning decides to dismantle any of these Master Nodes, or because the contract ends and the user decides to withdraw its initial capital, that it has to be done at a price significantly lower than its quotation.
The magic formula
To solve this dilemma between profitability and risk, Kuailian relies on its Machine Learning technology, which selects the best Master Nodes for each case.
The different configurations offered by these three products allow each user to choose the product that best suits their profile.
Characteristics of the three products
The basic operating model is the same for all cases. Each kuai is equivalent to $ 100 and the duration of the contract (commitment to stay) is 1,000 days, at the end of which you can decide whether to extend it for an additional 1,000 days or to recover the collateral.
The difference between the three products is risk (liquidity) and profitability.
In the case of the LR kuais, the approximate proportion of conservative Master Nodes vs. aggressive is 80-70% vs. 20-30%. In the case of MR kuais, this proportion is 60-50% vs. 40-50% approximately, that is, the product is made up of assets with less liquidity. And in the case of HR, the proportion is 10-20% vs. 90-80%, that is, most are low liquidity assets.
This directly affects the capital that we recover on the day we decide not to renew the contract.
In the case of medium risk kuias, we are more likely to recover a lower percentage of the initial investment than in the case of low risk kuais.
And in the case of high-risk kuai, a very small proportion of what was contributed to purchase the licenses is likely to be recovered.
Regarding profitability, based on past performance and always bearing in mind that they are not a guarantee of future performance, HR kuais are offering an approximate daily return of 0.5% (approximately 15% per month).
Since they are a high-risk product, HR licenses have quite restrictive requirements.
On the one hand, you must have experience with lower risk products.
High-risk kuai are required to comply with the ratio of 2 to 1, that is, for every 2 kuais between low and medium risk that each user has, he can acquire 1 high-risk kuai.
On the other hand, it is necessary to answer a short knowledge questionnaire similar to the MIFID questionnaires (European Directive on Markets in Financial Instruments).
Lastly, each purchase must be for a minimum of 50 licenses.
Taking into account the 2:1 ratio, this means that it is necessary to have previously purchased a minimum of 100 licenses between low risk and medium risk in order to buy a package of 50 high risk kuais.
Remember that if you want to join Kuailian, you can do it through this link.