Imagine you're shopping and you see oranges for sale at $5 a pound. But you know that in a couple of weeks, oranges will be out of season and their price will rise to $10 a pound. So, you buy a bunch of oranges now and store them in your fridge. When the price changes, you can sell your oranges for a profit! 🤑
Sounds like a life hack, right? Well, this is kind of how contango arbitrage works. Except it doesn’t apply for perishable commodities. Orange you glad we told you before you started buying truckloads of fruit? 😇
Key Takeaways
What is Contango?
What Causes Contango?
Who Benefits from Contango?
What is Contango Arbitrage and how does it work?
Advantages and Disadvantages
What is Backwardation?
What Causes Backwardation?
Who Benefits from Backwardation?
It Takes Two to (con)tango
The Bottom Line
How does Multipli fi protect user funds?
Multipli.fi employs a multi-layered approach to protect user funds. Our security measures include:
Multi-Signature Wallets
These wallets require multiple approvals for transactions; this extra layer of security ensures that no single point of failure can compromise user funds. By distributing control, this method significantly reduces the risk of theft or loss from a single compromised key or account.
MirrorX Technology
Your funds remain safe on Multipli fi because of MirrorX technology, which enables institutions to securely and efficiently delegate assets to a custodial platform. User assets are mirrored on the custodial platform at a 1:1 ratio; so your assets stay secure on-chain while still earning rewards on Multipli fi.
Data Privacy
Protecting our users' personal information is a top priority at Multipli fi. We've implemented robust measures to ensure the confidentiality and security of your data.
Advanced Encryption Protocols
Multipli fi uses strong encryption algorithms to protect sensitive data. Our protocols, including state-of-the-art cryptographic algorithms and secure key management systems, ensure that user information remains safe from unauthorised access or interception during both transmission and storage.
Comprehensive Breach Prevention
We proactively prevent unauthorised access and potential breaches using security measures including advanced firewalls, intrusion detection systems, and regular security audits conducted by third-party experts like PeckShield. Our team constantly monitors for emerging threats and vulnerabilities, allowing us to stay one step ahead of potential attackers.
Regular Updates
Multipli fi is also committed to staying ahead of emerging cyber threats, hence we consistently monitor for vulnerabilities and promptly implement system updates and security patches. This ensures that our platform remains fortified against potential attacks, providing users with a secure environment for their assets.
Even in the unlikely event of a security breach, Multipli fi has got you covered; here’s how:
Breach Management:
User funds remain safe even if an exchange fails. If an exchange fails, user funds will remain safe because they are locked up on-chain. Multipli fi will transfer collateral to another exchange and hedge the outstanding delta.
Customer Support:
Our dedicated customer support team will address any concerns or queries users may have regarding their accounts or transactions, and guide users through any security-related issues, providing prompt assistance and peace of mind.
The Bottom Line
At Multipli fi, we understand that the safety of your assets is paramount. Our comprehensive security measures work in tandem to provide a shield for your capital, so you can rest assured that your digital assets are in safe hands.
Protect your crypto like this cat protects their stash 😉
