Stress Test

  • The stress test intends to illustrate the effects of severe price declines in various assets and their effects on the fund’s perfomance. The stress test is hereby divided into exposure in currencies and counterparty exposure.
  • The chosen scenario consists of a 50% price decay in Bitcoins, defaults of 50% of the unregulated entities and a price decline as well as credit defaults for other assets. The fund will still only loses 13% in this catastrophic scenario which could be described as the worst case scenario.
  • More about the fund’s measures to manage those risks can be read in the section counterparty control.

Stressed loss for individual asset classes

  • The table above describes in detail the scenario which will eventually bring about a loss of 3% due to asset prices declines and credit defaults.