What is a Basket?
The simplest definition for a Basket is: a preset allocation of tokens that form a portfolio which is maintained through rebalancing over time.
Okay, but what does that mean?
When you make a deposit, the funds you deposit are moved into Baskets based on your Persona. Your Persona is determined by the Risk Questionnaire you complete when creating your Shrimpy Advisory account, and each Persona has tiers that unlock additional cryptocurrencies within each basket.
For example: hypothetically, if 25% of your portfolio is to be held evenly distributed between BTC and ETH, then your first Basket is ETH(50%)/BTC(50%) and 25% of all deposits would be routed to this Basket.
When funds are moved into a Basket, Shrimpy Advisory will immediately and automatically trade those funds for the cryptocurrenceis included within the Basket at values consistent with the Basket allocations. The deposited funds will be distributed based on the original percent allocation that is desired for each Basket and each individual cryptocurrency.
Can I change which Baskets I'm investing in?
Yes, you are in no way obligated to follow the investment strategy recommended by Shrimpy Advisory and you are free to craft your own investment strategy at any time.
Basket Tier Balance Requirements
Each Persona utilizes a tier system to broaden the exposure of your investments as you increase the value of your portfolio. At the time of your quarterly rebalance, your portfolio must reach the following values to unlock the specified baskets below:
- Bitcoin and Ethereum: $0 - $2,500.
- Blue Chip: $2,501 - $5,000
- Utility: $5,001 - $7,500
- DeFi: $7,501 - $10,000
- Layer 1: $10,001+
The reason for Persona Tier balance requirements is to prevent failed trades due to trading limits imposed by Gemini as well as limit and manage exposure to risk within a portfolio.
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.