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How we manage risk
Market volatility
Dynamic risk management based on market volatility
Financial markets are constantly changing: sometimes they are calm, while at other times they experience unexpected fluctuations. Our trading system measures this volatility in real time and adjusts the trading frequency accordingly.
When there is more market movement, the system trades more frequently; during calmer periods, it trades less. The capital allocation remains unchanged and the reserve stays neutral, keeping the risk profile consistent regardless of market conditions.
What does the system do during market turbulence?
Illustration of the principle — not a representation of actual positions or proportions.
Lower risk exposure
Multiple independent funds
Rather than one large fund, we use multiple separate funds. Capital is spread across different entry points and market conditions.
Short holding periods
Positions are often held for only a short period, ranging from a few minutes to a maximum of four hours. This limits prolonged exposure to sudden market movements.
Strict limits
The system operates with fixed limits for each position and automatically reduces exposure when multiple positions become subject to drawdown management — without human hesitation or emotion.
Trading safety fund
In addition to the risk management built into our trading system, Yieldfund maintains a separate buffer for exceptional market conditions: the Trading safety fund. You can see its current balance here.
To be clear: this buffer reduces risk, but does not eliminate it.
The people behind the system
Technology, monitored by people
The trading system operates automatically, but it does not run unattended. Our in-house team develops and monitors the trading software together with an external development partner.
This allows us to combine the speed of automation with human oversight, without claiming that this eliminates all risk.
Honest about risks
An offer that only highlights the benefits deserves scepticism.
That’s why we’re upfront about the risks.
Market risk
Trading can result in losses. Our system uses strict limits and automatically reduces exposure during periods of market turbulence.
Repayment risk
Interest payments and repayment depend on Yieldfund’s ability to meet its obligations. Our buffer (Trading safety fund) reduces this risk, but does not eliminate it.
Liquidity risk
Your money is locked in for the duration of the term; early withdrawals are only possible in accordance with the terms and conditions.
No regulatory supervision
This investment falls outside AFM supervision and is exempt from the prospectus requirement. Please read our information carefully and ask any questions you may have.
Want to visit us at our office?
In a 30-minute call, we’ll take you through the risks, our risk management and the terms and conditions. You ask the questions and then decide in your own time. Our doors are also always open — in Deventer and Amsterdam.
Investing involves risks. You may lose some or all of your investment.