This help article is a collection of questions that have been asked about Shrimpy Advisory. Included will be a brief response to the question and, when appropriate, a direct link to a help article with more in-depth information. If you have a question, we recommend looking through this list and subsequent links to see if the answer is readily available. If you are still unable to find what you're looking for, please contact our Support Team by emailing AdvisorySupport@Shrimpy.io and we'll be happy to answer any questions you have.
What is Shrimpy Advisory?
Shrimpy Advisory is a product created by Shrimpy for cryptocurrency investors that provides long-term cryptocurrency investment management services to our clients utilizing rebalancing coupled with an investment strategy that has been carefully crafted and maintained by our proprietary algorithm.
You can read more about Shrimpy Advisory here.
What is Rebalancing?
Rebalancing is the act of trading to correct cryptocurrencies that have deviated from a predetermined allocation. Said another way, it is periodically selling cryptocurrencies that have performed well and buying cryptocurrencies that have underperformed within your portfolio. The purpose is to maintain the desired risk levels and exposure to specific cryptocurrencies. As the price of cryptocurrencies change over time, it is natural that a portfolio will hold too much or too little of a cryptocurrency and need to be corrected.
You can read more about Rebalancing here.
Is Shrimpy Advisory available to customers outside of The United States?
No, at this time Shrimpy Advisory is only available to residents of The United States.
Why do you require KYC?
As a *Registered Investment Advisor (RIA), we are required to verify the identity of our clients.
What security precautions are taken to protect your customers?
Shrimpy Advisory requires 2FA for identity verification and utilizes FIPS 140-2 validated hardware security modules (HSMs) to protect the confidentiality and integrity of your Shrimpy Advisory Account. Shrimpy Advisory also ensures your sensitive data is encrypted at rest and when communicating with you on our website.
Why is 2FA required?
We require 2FA on all Shrimpy Advisory accounts as a method of ensuring the safety of your Shrimpy Advisory account. According to this study from July 2022, Human Error is the primary cause of data breaches. By requiring 2FA, we ensure the security of your account even in the event of a personal security incident.
You can read more about setting up 2FA here.
I set up 2FA, but you're not asking me for my code. What gives?
In order to make the security of your account less onerous to you, we provide the option of allowing Shrimpy Advisory to "remember" your device for 30 days. This means that when you select this option, as long as you're logging in from the same device and location you will only have to enter your authentication code once per month. Any login attempts detected from a different device or location will require additional 2FA verification.
What is a Strategy and how do they work?
When you create your Shrimpy Advisory account, you are asked to complete a Risk Questionnaire. This questionnaire is designed to gauge your individual investment objectives and risk tolerance. Based on your answers, you're assigned to one of our available Risk Tolerance tiers which provides an investment strategy that is most appropriate for your account based on your individual risk tolerance.
You can read more about Personas here.
What are Baskets?
A Basket is a collection of cryptocurrencies with predetermined allocations. Funds held within each Basket will be invested per the investment strategy relevant to that Basket, and each Basket has a different selection of cryptocurrencies and allocations which make up the Basket’s investment strategy.
You can read more about Baskets here.
Where are my funds held?
Gemini is the custody provider for Shrimpy Advisory. When you deposit funds into your Shrimpy Advisory account for the first time, we create a subaccount within our Shrimpy Advisory trading account on Gemini where your funds are stored and traded during rebalancing.
You can read more about custody here.
What options are available for Deposits?
Deposit from a bank account, credit or debit card, cryptocurrency address, or wire transfer into your Shrimpy Advisory account at any time.
Shrimpy Advisory allows deposits of the following cryptocurrencies:
Upon receiving a deposit, funds will be represented within your Shrimpy Advisory account and available for use within 24 hours.
Any funds that are deposited into your Shrimpy Advisory account will automatically be distributed into your selected baskets based on your desired allocations. You are not required to take any action on deposited funds.
What does the Withdrawal situation look like?
Withdrawals can be made at any time by withdrawing any of our supported cryptocurrencies to an external wallet or a linked bank account. We do not restrict withdrawals to specific redemption windows or times of the month.
After linking a new cryptocurrency withdrawal address, there is a 7-day waiting period before you can withdraw to your wallet address.
Shrimpy Advisory does not charge a fee for processing a withdrawal, but you will be subject to withdrawal fees charged by Gemini. When withdrawing cryptocurrencies, on-chain transaction fees will apply. Withdrawals of cryptocurrencies will take varying amounts of time depending on which blockchain is being used. When making a withdrawal, funds are removed proportionally from each Basket within your Shrimpy Advisory account.
You can read more about withdrawals here.
How does Shrimpy Advisory get paid?
Shrimpy Advisory charges an annual 1.2% AUM (Assets Under Management) fee billed monthly. This means that each month; you will be billed 0.1% of the assets under management within your Shrimpy Advisory account which, over 1 year, will equate to 1.2% AUM.
As an example calculation, an investment portfolio of $1,000 would be charged $1 each month with Shrimpy Advisory.
*Registration as a Registered Investment Advisor does not imply a certain level of skill or training.
Have questions, comments, or concerns? Feel free to send an email to AdvisorySupport@Shrimpy.io and one of our Support Agents will get back to you as soon as we're able.