About Arbtrust

Methodology

Our methodology is not based on the traditional notion of value, trading, buying low to sell high, or any other type of market manipulation and speculation. We aim as a company to have an immediate response to our transactions and to not depend on an asset’s increasing or decreasing value. Our strategy is designed around our technology, expertise, and market research. Arbtrust is a quant, event, and technology-driven investment fund that developed its unique methodology for active digital assets and currencies investments. The core methodology used by Arbtrust Venture on the investments is the immediate execution of pure arbitrage with currencies and digital assets. Pure arbitrage is the investment strategy in which we simultaneously buy and sell a security or asset in different markets to take advantage of a price difference.

What is Arbitrage:

According to Harvard Business School, some several strategies and tactics can be employed within the alternative investments industry. They frequently contrast with the typical trade of “buy and hold” tactics leveraged by most long-term stock and bond investors—and are usually more complicated. Arbitrage is one alternative investment strategy that can prove exceptionally profitable when leveraged by a sophisticated investor.

ONE TOOL IN THE ALTERNATIVE INVESTMENT ARSENAL

In its many forms, Arbitrage can be an effective tool for investors seeking low-risk yields. Because yield is often small, it requires high volumes to realize the benefits of arbitrage and generate enough profit to overcome transaction fees. For this reason, arbitrage is generally not a strategy individual investors can leverage for themselves. However, it is often used by hedge funds and other institutional investors capable of high volumes.

Arbitrage is an investment strategy in which an investor simultaneously buys and sells an asset in different markets to take advantage of a price difference and generate a profit. While price differences are typically small and short-lived, the returns can be impressive when multiplied by a large volume. Hedge funds and other sophisticated investors commonly leverage arbitrage.

There are several types of arbitrage, including pure arbitrage, merger arbitrage, and convertible arbitrage. Global macro is another investment strategy related to arbitrage, but it’s considered a different approach because it refers to investing in economic changes between countries.

TYPES OF ARBITRAGE

1. Pure Arbitrage

Pure arbitrage refers to the investment strategy above, in which an investor simultaneously buys and sells a security in different markets to take advantage of a price difference. As such, “arbitrage” and “pure arbitrage” are often used interchangeably. Many investments can be bought and sold in several markets. For example, a large multinational company may list its stock on multiple exchanges, such as the New York Stock Exchange (NYSE) and London Stock Exchange. Whenever an asset is traded in various markets, it’s possible prices will temporarily fall out of sync. It’s when this price difference exists that pure arbitrage becomes possible. Pure arbitrage is also possible in instances where foreign exchange rates lead to pricing discrepancies, however small.

Ultimately, pure arbitrage is a strategy in which an investor takes advantage of inefficiencies within the market.

2. Merger Arbitrage

Merger arbitrage is a type of arbitrage related to merging entities, such as two publicly traded businesses. Generally speaking, a merger consists of two parties: the acquiring company and its target. If the target company is a publicly traded entity, then the acquiring company must purchase the outstanding share of said company. In most cases, this is at a premium to what the stock is trading for at the time of the announcement, leading to a profit for shareholders. As the deal becomes public, traders looking to profit from the deal purchase the target company’s stock—driving it closer to the announced deal price.

The target company’s price rarely matches the deal price; however, it often trades at a slight discount. This is due to the risk that the deal may fall through or fail. Deals can fail for several reasons, including changing market conditions or refusing the deal by regulatory bodies, such as the Federal Trade Commission (FTC) or the Department of Justice (DOJ).

In its most basic form, merger arbitrage involves an investor purchasing shares of the target company at its discounted price, then profiting once the deal goes through. Yet, there are other forms of merger arbitrage. For example, an investor who believes a deal may fall through or fail might choose to short shares of the target company’s stock.

3. Convertible Arbitrage

Convertible arbitrage is a form of arbitrage related to convertible bonds, also called convertible notes or convertible debt. A convertible bond is, at its heart, just like any other bond: It’s a form of corporate debt that yields interest payments to the bondholder.

The primary difference between a convertible bond and a traditional bond is that, with a convertible bond, the bondholder has the option to convert it into shares of the underlying company later, often at a discounted rate. Companies issue convertible bonds because doing so allows them to offer lower interest payments.

Investors who engage in convertible arbitrage seek to take advantage of the difference between the bond’s conversion price and the current price of the underlying company’s shares. This is typically achieved by taking simultaneous positions—long and short—in the convertible note and underlying shares of the company. Which positions the investor takes and the ratio of buys and sells depends on whether the investor believes the bond to be priced. In cases where the bond is cheap, they usually take a short position on the stock and a long position on the bond. On the other hand, if the investor believes the bond to be overpriced, or rich, they might take a long position on the stock and a short position on the bond.

Fund Strategy

Nowadays, several funds are working under the arbitrage strategy and there are different types of arbitrages, including pure arbitrage, merger arbitrage, and convertible arbitrage. Another type of arbitrage is the global macro investment strategy. Pure arbitrage is: “Pure arbitrage refers to the investment strategy in which an investor simultaneously buys and sells a security in different markets to take advantage of a price difference. As such, the terms “arbitrage” and “pure arbitrage” are often used interchangeably. Many investments can be bought and sold in several markets. For example, a large multinational company may list its stock on multiple exchanges, such as the New York Stock Exchange (NYSE) and London Stock Exchange. Whenever an asset is traded in multiple markets, its prices may temporarily fall out of sync. It’s when this price difference exists that pure arbitrage becomes possible. Pure arbitrage is also possible when foreign exchange rates lead to pricing discrepancies. Ultimately, pure arbitrage is a strategy in which an investor takes advantage of inefficiencies within the market.”

Arbtrust’s pure arbitrage strategy is operated with the digital form of the US dollar, the USDT, or USDC, taking advantage of the high volatility of the same asset (Bitcoin) across different markets (the Exchanges). Our software, systems, and algorithms can identify the highest buying price and the lowest selling for the same asset (Bitcoin) at any of the markets (Exchanges) where we have an account. When our software identifies a profit spread that can be made if we simultaneously execute the open orders for buying and selling on the book order, the system – or the operators – will then have the opportunity to take action and perform the transaction accordingly. If executed, the transaction will happen in 0.034 seconds, and it only occurs when a profit can be made.

Please see below an infographic of our.

Software & Algorithm Control:

The transactions and the system are monitored and controlled daily as the software runs. Without constant updates and interventions, no set format can continuously monitor the system alone. The flow is governed by our IT engineers and technology developers, who watch the algorithm and the system performing live. Given the high-tech nature of our operations, there are constant updates and changes on the exchanges that we need to adapt to – for example, the most prestigious exchange in the world changes its API connections weekly. If we are not connected to the exchange, the algorithm cannot perform. Servers also change their location, and the integrations and connections must constantly be updated. Therefore, we have a whole team dedicated to our system’s maintenance.

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Important

Legal

Arbtrust LLC is a Company based in Florida. Any prospective investors that wish to subscribe units of the Abrtrust LLC operations should contact us through the contact form. This website is not an offer to buy or sell, nor is it a solicitation of an offer to buy or sell, the Units or any other security or to participate in any advisory services or trading strategy. Any offering or solicitation will be made only to certain qualified investors who are “accredited investors” as defined under Regulation D of the Securities Act, and any investments by U.S. persons will only be permitted to potential investors who demonstrate that status. Investors in the Shares must have the financial ability, sophistication, experience, and willingness to bear the risks of such investment.

Arbtrust Venture LLC (the “fund”) operates pursuant to SEC rule 506(b) of regulation D. The membership interests of the fund have not been registered under the securities act of 1933 (the “securities act”), or the securities laws of any state. Abrtrust performs arbitrage in the negotiation of digital assets, the simultaneous buy and sell of a specific asset taking advantage of the fluctuation of the price of the same asset; and also invests in international private companies.

Historical returns, economic, market or other performance it is not an indication of future results. Potential investors must have the financial ability, sophistication, experience, and willingness to bear the risks of an investment.

Any potential investments made in the company involve risk. Potential investors should carefully consider the long term nature of an investment in the Units prior to making an investment decision. Units of the company are not insured by the FDIC.

TO REGISTER FOR ACCESS TO INVESTMENT MATERIALS.THIS CONFIDENTIAL DOCUMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR ADVISE, IS FOR INFORMATIONAL PURPOSES ONLY WITH NO WARRANTY MADE EXPRESS OR IMPLIED TO ITS ACCURACY. ACCREDITED INVESTORS ONLY.