Portfolio Insurance With Market Crash Protection
You can use Market Crash Protection to keep your portfolio safe from price dumps. If you’re holding multiple tokens, you can buy Market Crash Protection for the whole portfolio in a single click.
Market Crash Protection is a system of smart contracts that allows you to sell your tokens at guaranteed prices. Even if the market prices go lower, you can still sell at the guaranteed prices using Market Crash Protection (MCP). If you’re interested in how it works, read more here.
MCP allows you to protect each token separately. However, if you’re holding multiple tokens, you can save time with the “portfolio insurance” feature. It automatically detects the tokens that you’re holding by analysing a set of addresses. Using the publicly available information from blockchain, it creates a list of the tokens + their amounts.
After your portfolio is analysed, our application generates an “insurance plan” that shows which tokens are going to be insured, what guaranteed prices they will have, and how much it would cost. The insurance cost would be much lower than the total worth of your portfolio.
When you click “Buy insurance plan”, our application will ask you to sign the transaction.
When you sign the transaction & it is confirmed on the blockchain, you will be protected — you will be able to sell the tokens at guaranteed prices according to your insurance plan.
Should you buy insurance?
Think about it this way:
- If you buy insurance & your portfolio goes up, you don’t use the insurance — but you fully cover the cost of insurance with the growth of your portfolio. You lose a little money on insurance, but you make much more on your portfolio.
- If you buy insurance & your portfolio goes down, you can sell the tokens at guaranteed prices (higher than market prices after the dump). You save a lot of money.
- If you don’t buy insurance & your portfolio goes up, congratulations! You save a little money on insurance.
- If you don’t buy insurance & your portfolio goes down, you can sell the tokens at market prices (lower than guaranteed prices according to insurance). You lose a lot of money, especially if the market crashes quickly and deeply.
- If you buy insurance & your portfolio goes up, you lose a little (insurance cost).
- If you don’t buy insurance & your portfolio goes down, you lose a lot (selling lower than guaranteed price).
The ultimate choice is up to you. You may decide that paying a small sum for insurance is better than losing a lot of money if the market suddenly goes down. If you decide to buy it, be sure to use our “portfolio insurance” feature for complete coverage of your wallet.
About Shield Finance
Shield Finance ($SHLD) is developing Market Crash Protection that allows users to insure their portfolio against major market crashes. If you want to get notified about early access to our product, please follow our Telegram & Twitter. If you want more details, feel free to read the technical documentation.
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