In a financial cycle, protection mechanism plays an important role, mainly used to mitigate the risk of economic loss. In order to solve the pain points of lacking protection elements in most of the financial products, Syncscale Group launched Sync Protection as the 3rd level of Sync Vault Fund protection. Separately, the Group will set up a pool called Sync Protection Pool which has more than 5 million SYNU as a guaranteed fund. The guarantee fund will be collected from the participant’s daily returns, and it will continuously expand to indefinite.
The protection fund will be contributed by the participant’s daily trading dividends, hence no additional payment is needed, and the protection fund will continue to expand with no limits.
This is similar to traditional insurance. It may be very small and seemingly useless when it is not been used, but in the event of a disaster happened, this could be vital protection.
In the trading industry, the market is usually unpredictable. Even though the professional trading team are skilful enough to gain profits from two-ways (long or short), but they have no ability to control the cyclical price retracement that caused capital shrinkage. At this time, Sync Protection will come into play.
When customers suffer losses, they will receive one-time or partial compensation through the Sync Protection Fund, each compensation can account for up to 30% of the protection pool. This is to ensure all parties get the maximum benefit and provide uninterrupted compensation.
