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RSCT

The Ross Smith Cryptocurrency Tracker

The Ross Smith Cryptocurrency Tracker ("RSCT") has been created by Ross Smith Asset Management ULC ("RSAM") to combine specific traded and as identified cryptocurrencies into one weighted value. This is accomplished by using our proprietary weighting methodology (as defined herein) on the identified cryptocurrencies (which are included in the RSCT) and publishing this value, currently daily. Through this, Ross Smith and the investors in our products can track the value of various cryptocurrencies based on market capitalization.


Methodology

The Ross Smith Cryptocurrency Tracker is calculated as follows.

  1. Price, quantity in circulation, market capitalization, and other data on the top N cryptocurrencies is gathered from coinmarketcap.com. N is set sufficiently high such that at least one \(Weight\) corresponding to one cryptocurrency is less than our \(Threshold\). Formally, \[\frac{Asset\ MC}{\sum_{i=1}^{N}Asset_{i}\ MC} < Threshold\] for at least one asset. This is to ensure that data on enough assets has been collected so no asset which meets our criteria is excluded. Typically a value of \(20\) is sufficient.
  2. The cryptocurrencies are ranked by market capitalization.
  3. The total sum of all market capitalization is calculated as follows: \[Total\ MC = \sum_{i=1}^{k}Asset_{i}\ MC\] for \(k\ =\ number\ of\ assets\).
  4. The \(Weight\) of each of the \(i\) assets is calculated as follows: \[Weight_{i} = \frac{Asset_{i}\ MC}{Total\ MC}\]
  5. If the \(Weight\) of the smallest asset is less than our \(Threshold\), then we remove that asset and repeat steps 2 and 3. Notice that the new value of \(k\) is \((k-1)\). We iterate this process until no asset \(Weight\) is less that our \(Threshold\).
  6. Now that all of our asset \(Weights\) are larger than our \(Threshold\), we calculate our tracker value as: \[INDEX = \sum_{i=1}^{k}\ Weight_{i}\times Price_{i}\]

Data:

All data, including price, quantity in circulation, market capitalization, etc., is taken from coinmarketcap.com.

Threshold:

We use a threshold of \(1\%\) or 0.01. This ensures fair representation of the cryptocurrency market without creating a large burden for trading.

Number of Constituents:

Because the cryptocurrency market is rapidly evolving, a tracker composed of a fixed number of constituents would not be able to adapt to the changing landscape. Because of this the Ross Smith Cryptocurrency Tracker does not have a fixed number of constituents.


Disclaimer:

THE SOURCE OF THE DATA THAT COMPRISES THE RSCT IS COINMARKETCAP.COM. THE DATA IS CONSIDERED ACCURATE AND RELIABLE HOWEVER RSCT CAN MAKE NO ATTESTATION AS TO ITS ACCURACY AND RELIABILITY. ROSS SMITH ASSET MANAGEMENT ULC DOES NOT GUARANTEE THE VERACITY, COMPLETENESS OR ACCURACY OF THE RSCT OR OTHER INFORMATION FURNISHED IN CONNECTION WITH THE RSCT. THE RETURNS PERFORMANCE SUMMARIZED BY THE RSCT ARE FOR ILLUSTRATIVE AND INFORMATION PURPOSES ONLY. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE PERFORMANCE. THE PERFORMANCE OF THE RSCT DOES NOT IMPLY THAT THE ROSS SMITH CRYPTOCURRENCY INVESTMENT FUND ("RSCF") WILL ACHIEVE SIMILAR PERFORMANCE. THIS IS FOR INFORMATION PURPOSES ONLY AND NOT INTENDED AS SOLICITATION. FOR RISKS ASSOCIATED WITH CRYPTOCURRENCIES GENERALLY PLEASE REFER TO THE RSCF TERM SHEET. THE VALUE OF RSCT IS UPDATED DAILY, BASED ON PRICES OBTAINED FROM COINMARKETCAP.COM. THE CRYPTOCURRENCIES USED TO COMPRISE RSCT CAN CHANGE DAILY AND ARE BASED ON MARKET CAPITALIZATION PROVIDED BY COINMARKETCAP.COM. THE RSCT IS SUBJECT TO CHANGE WITHOUT NOTICE. THE RSCF IS AVAILABLE TO ACCREDITED, EXEMPT-QUALIFIED INVESTORS ONLY.