A Class Group, in a financial context, refers to a categorization of assets or liabilities that share similar characteristics, risk profiles, or regulatory treatment. Within crypto investing and trading systems, this classification applies to digital asset types such as utility tokens, security tokens, stablecoins, or NFTs. Its purpose is to facilitate organized management, analysis, and reporting of diverse digital asset portfolios, enabling consistent application of risk parameters and compliance rules.
Mechanism
The operational logic for forming class groups involves defining specific attributes and criteria for each category, such as underlying technology, regulatory status, liquidity characteristics, or market capitalization. Automated systems then process incoming asset data, applying these rules to assign each digital asset to its appropriate class group. This mechanism allows for the dynamic aggregation and disaggregation of data, supporting targeted risk assessments and performance tracking.
Methodology
The strategic approach centers on structuring digital asset holdings to align with investment objectives, risk appetites, and regulatory requirements. This methodology supports granular control over portfolio exposures by enabling distinct trading strategies, collateral policies, and reporting standards for different asset categories. By organizing assets into logical class groups, institutions can manage their crypto investments with greater precision and operational efficiency.
SPAN and TIMS are distinct risk operating systems; the choice dictates capital efficiency by how accurately each models a portfolio's unique offset profile.
The Theoretical Intermarket Margining System provides a dynamic, portfolio-level risk assessment to calculate margin based on net loss across simulated market shocks.
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