|Header | Content|
|Author| Chris Bender
|Status| in discussion
Different investment or even strategies work in different time horizons.
Strategies that have a longer time frame need the capital invested for a longer time to be successful. it can be counterproductive if funds can be withdrawn at any given time from every portfolio.
If investors are “d´accord” with the strategy, it should be possible to lock the funds for e.g. 1month, 6 months or 12 months. It also makes individual asset management easier, as one could serve different types of investors with different time frames easier. It also protects the asset manager (and the investor) from getting a good longer term strategy busted, if investors panic sells because of a short term market reaction or move.
I suggest dHedge simply introduces the possibility to set the freeze / lock period for each portfolio - at least for private pools, where a strategy is started for an individual investor or a group that know that this is the start date and time+x is the locking period.
After investors fund the pool they know their assets is locked for period X. They can receive a prompt that this will be the case, before they confirm the transaction. The smart contract then records the date of the funding and sets for the first possible withdrawal date at “date time+x”.
With these features dHedge would become even more of a professional tool - a tool for professionals!