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Frequently Asked Questions

1. What is a Hedge Contract?
   A Hedge Contract (sometimes referred to as a "hedging") is an agreement used by investors to protect their long term capital against adverse market fluctuations and permenant capital loss. Hedging is most commonly practiced by investors holding a commodity that is highly volatile.


2. Does Encrypted Energy rehypothecate customer loan collateral?
   Yes. Encrypted Energy takes your spot Bitcoin collateral and reinvests it in structured series of options contracts on your behalf.


3. Does Encrypted Energy use customer funds to borrow securities?
   No. Encrypted Energy never uses customer funds to borrow securities or fund debt obligations of any kind.


4. Does Encrypted Energy commingle customer funds with proprietary funds for other investment strategies?
   No. We maintain separate trading accounts to keep customer funds independent of company assets.


5. Where does the options payoff yield come from?
   Mostly market makers and institutional investors such as hedge funds who seek to obtain options premiums on the Bitcoin market.


6. Do you offer an options product that lets me hold my keys?
   Not currently, though we are actively exploring methods to make your collateral more secure.


7. Can I redeem my Hedge Contract before it expires?
   Yes, under some circumstances we allow early redemptions for a fixed penalty on the remaining contract collateral. Contact us to discuss your scenario.


8. What is the optimial Bitcoin hedge allocation?
   The answer depends on every investor's objectives and risk tolerance. Some professional analysts have indicated that up to 85% long Bitcoin is the optimal allocation.


9. Does Encrypted Energy restrict eligible investors in any way?
   Within the United States, Encrypted Energy is available to only accredited investors and entities. No restrictions outside the US.