The bitFORTUNE Gold Derivative is defined to provide an option on the bitFORTUNE Platform to store value on the spot price of gold. This derivative is classified as low risk.
bitFORTUNE Gold could potentially be higher or lower than the spot price of gold. This is due to dollar cost averaging strategies and interest bearing assets that comprise the derivative’s composition. Gold assets may be lent for interest per some assets capabilities to centralized or decentralized entities. The intention is to outperform the spot price of gold by trading gold to and from United States Dollars (USD) using technical analysis and other techniques to increase the amount of gold per dollar invested along with earning interest. The bitFORTUNE Gold derivative composition includes gold and stable coin(s) that is pegged 1:1 to USD. This allows strategic shifting of value to and from gold and USD.
There is a front end and back end fee for the bitFORTUNE Gold Derivative. The front end fee is a flat 1%. The back end fee is variable depending on the performance of the derivative. The minimum back end fee is 1%. If the derivative performs greater than 1% in 30 days the back end fee increases by 25% of percent gains over 1%. For example if the derivative performed 5% for the past 30 days the back end fee would be 2%. 50% of the front and back end fee goes toward bitFORTUNE token – the main asset of the bitFORTUNE Platform. The other 50% of the fee is the administrative transaction processing and maintenance fee.