Set Ideal Balancing Ratio:
Utilize virtual funds to establish the desired balance ratio between assets.
Example: Assuming the ETH/USDT index is 3,000, if a user invests 2,000 USDT and 1 ETH and sets virtual funds to 0, the system will initiate with ETH/USDT= 60%:40% for position transfer. Adjusting virtual funds to 1,000 USDT would result in an initial balance ratio of ETH/USDT= 50%:50%.
Improve Capital Utilization:
Enhance capital utilization using virtual funds.
Example: With the ETH/USDT index at 3,000 and an investment of 3,000 USDT and 1 ETH, the balance ratio is ETH/USDT= 50%:50%. Without virtual funds, each rebalancing order involves only 0.01 ETH, utilizing just 0.5% of assets per transaction. Setting virtual funds to 9 times the real USDT investment increases each order quantity to 0.1 ETH, utilizing 5% of total assets per transaction, significantly improving capital utilization.
Not Leverage or Liquidation Risk:
Virtual funds do not introduce leverage or liquidation risk. They only increase the size of each order.
RMM AI Version:
In the RMM AI version, virtual funds are automatically calculated based on historical performance.
The balance ratio, considering both real and virtual funds, is set at 50:50 for the two currencies