Our Trading safety fund
The buffer at a glance
A separate buffer alongside the trading system
Alongside the risk management built into the trading system, Yieldfund maintains a separate, internally managed reserve: the Trading safety fund. This buffer is designed to support positions when a trade does not go as expected and to maintain trading capacity during unexpected or extreme market movements.
You can see the current balance alongside, expressed as a percentage of total invested capital. This percentage is dynamic and changes weekly.
What the buffer is for
Position recovery
If a trade does not go as expected, the fund can be used to support positions and help mitigate the impact.
Continuity during market turbulence
The buffer helps maintain trading capacity during periods of extreme volatility, allowing the trading system to continue operating.
Readily available
The fund is held in readily available digital dollars (USDC), making it immediately accessible when needed.
Scaling with volume
Built to scale
Our strategy is to grow the Trading safety fund in line with total investments. This ensures that the buffer’s protective role remains proportionate to the volume managed by the trading system.
New investments and the size of the fund do not always move at the same pace. Coverage can therefore be temporarily higher or lower, while the fund is scaled in line with the overall volume.
Why the percentage changes weekly
New investments are added, increasing the total invested capital.
Yieldfund contributes capital to the fund, allowing the buffer to grow alongside it.
The two do not always move in line with each other — which is why the ratio fluctuates from week to week.
You can see the current balance at the top of this page.
Honest about the buffer
A buffer is a safeguard, not a guarantee.
That’s why we’re clear about what the fund is — and what it isn’t.
Not insurance
The Trading safety fund is an internal reserve within Yieldfund’s trading structure — not insurance and not a guaranteed safety net.
No legal entitlement
As an individual investor, you currently have no legally enforceable rights to the fund.
Reduces risk, but does not eliminate it
Interest payments and repayment remain dependent on Yieldfund’s ability to meet its obligations. The buffer reduces this risk, but does not eliminate it.
Transparent about changes
If we make any structural changes to the fund’s setup or size — for example, by introducing formal rights or safeguards — we will inform investors in good time.
Questions about the Trading safety fund?
In a 30-minute call, we’ll take you through how the buffer is structured, the risks and the terms and conditions. You ask the questions and then decide at your own pace. Our doors are also always open — in Deventer and Amsterdam.
Investing involves risks. You may lose some or all of your investment.