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The UBX tokenized portfolio would be the first of its kind - it is bought with crypto and holds only Virtual Digital Asset. It will bring stability and old-economy money into the ecosystem, which will boost liquidity and provide a stable instrument for those who previously thought it was too risky to invest in a single technology.

It is hypothesized that one is not able to attribute the lack of cryptocurrency take-up by retail investors seeking to allocate high-risk portfolio funds solely to the difficulty of purchasing Virtual Digital Asset. The number of exchanges Services and payment methods available to purchase Virtual Digital Asset is increasing exponentially. In many cases it is easier and less burdensome to purchase bit coin than to invest in a USD denominated mutual fund.

The authors believe this lack of investment may be due to the fact that no such product has previously been available. Communicated effectively in plain non-technical language and actively marketed to this sector. There is a distinction between 'high risk' and unacceptable risk in the minds of many investors - Virtual Digital Asset have traditionally been seen as the latter. UBX aims to bring the risk to an acceptable level for allocation to a retail investor's portfolio.


The central concept underlying the case for index fund investing is that, at any given time, the market consists of the cumulative holdings of all investors, and that the aggregate market return is equal to the asset-weighted return of all market participants. Since the market return represents the average return of all investors, for each position that outperforms the market, there must be a position that underperforms the market by the same amount, such that, in aggregate, the excess return of all invested assets equals zero.

This zero sum around the market weighted mean return means that for every profitable trade an investor makes, another investor must make the opposite side of that trade and incur a loss relative to the market. This holds true regardless of whether the coin or token in question is mispriced or not, and for the same reason, the zero-sum game theory must apply regardless of market direction.

The distribution of market returns will thus be centered around a mean - the index UBX aims to track. By holding basket of coins we hope to capture this mean return we expect to see a few coins that underperform and a few that over perform, the sum of the returns should provide the mean or market/index return.


Active traders and fund managers generally have a far higher fund expense ratio than that of an index fund - around 6 times higher than an index fund (3% p/a compared to 0.5% p/a). The effect of this is that the aggregate return of investors is less than p/a compared to 0.5% p/a). The effect of this is that the aggregate return of investors is less than zero sum which makes outperformance compared to an index strategy and to the market much less likely.

Data from the Financial Research Corporation has been used to evaluate the predictive value of different fund metrics such as a fund's past performance. Morningstar rating, alpha, and beta. In the study, a funds expense ratio was the most reliable predictor of its future performance. With low-cost funds delivering above-average performance relative to the funds in their peer group in all of the periods examined. Likewise, Morningstar performed a similar analysis across its universe of funds and found that, regardless of fund type, low expense ratios were the best predictors of future relative outperformance.

A position as a large player in the crypto markets will afford UBX access to lower exchange fees and none of the legacy banking costs. Fiat investors looking for crypto returns with a broad exposure and limited risk profile will be drawn to UBX.


  • Security and predictability (as opposed to, for example, having to run a separate block chain).

  • Use of robust and well-supported clients (Ethereum based tokens can be managed with official Ethereum clients).

  • High liquidity (transferable for ether).

  • Easier listing on exchanges with infrastructure already in place.

  • Ethereum smart contracts enable a very transparent way of offering a liquidation option.

The smart contract complies with the Binance Smart Chain token standard and can be used from any compatible Binance Smart Chain wallet. The contract code facilitates an ICO crowdsale by specifying a start and end block number so as to restrict certain functions during the ICO period. The token to ether price ratio is adjusted dynamically throughout the presale such that token price tracks $1 (the bonus structure is then applied on top of this).

Participants can send ether to the contract directly or via the buy or buy to functions. The ether purchase amount is used to calculate the tokens bought which are then added to the balance of the participant account. The participant account (the account that is debited with tokens) is the sender account when using the buy and fallback function or the specified address when using the buy To function and passing an address as an argument.

The smart contract has a two-tier control functionality which gives two controlling wallets different levels of authority. This allows future block chain development and full on-chain automation without sacrificing the control of fund managers.

The withdraw function automatically calculates the ether amount to send to the participant account based on a forward pricing policy which uses the asset-backed price of the tokens less a 1% trading fee. This trading fee is not a fee that UBX imposes - it is levied by the exchanges necessary to execute the liquidation procedure. The price will be updated regularly to accurately reflect the value of the underlying crypto assets.