Frequently Asked Questions

Questions about our company, about Insula Token (ISLA) and about our consulting offers

 

About our Private Limited Company 

What does Insula offer in simple terms?

We offer 3 strictly different products: i.e they are not the same, but 3 very different Tokens.

  1. An investment fund (under the form of a Token)
  2. A cryptocurrency (under the form of a Token)
  3. A deposit banking system (under the form of a Token)

All of these products are called “Insula Token”, because they were created by Insula.

Although our cryptocurrency (2) works together with our deposit banking system (3), they are still strictly different products.

How does the investment software work?

In Insula, only you, the depositor, can ever withdraw your own funds. Insula fund managers & the Insula network can only trade the assets on your behalf, but not withdraw them into their wallets.

It is the code that says it, not us- you do not need to believe us, it is just the case per se.
“Code is Law”/ “In Code we Trust”.

What is the investment style?

We only accept Ethereum as base investment as Insula is a crypto to crypto specialist.

Our investment style is actively managed portfolio that deliver absolute returns in Ethereum terms.

For example, if the client invests 1 Ethereum in our fund, the goal is to give back to the client 1.1 Ethereum, which would mean a 10% absolute gain in this case – independently from Ethereum’s value in US Dollar or Euros.

Definition: The absolute return or simply return is a measure of the gain or loss on an investment portfolio expressed as a percentage of invested capital.

In simple terms, what is the investment philosophy & strategy?

The strategy is an 1) actively traded fund, that yet remains 2) market neutral. (diversified).

This in order to remain aligned with our mission statement : Insula delivers absolute returns out of purely quantitative decision making through programmatically executed solutions.

To reach such a result:

  1. We break down Ethereum into a naively diversified basket of low-price correlated tokens, in order to reduce the portfolio’s variance.
  2. We then command the trading of coins that appreciated against Ethereum to turn unrealized gains into realized ones, still in Ethereum terms.

Decision making is made upon buy/sell automated signal generations, based on averaged out mathematical oscillators & indicators (100% technical automated analysis to slash human bias to 0%).

Willing to learn more about how we do it? Check our Investment Philosophy page.

Insula Overview 

How is the fund allocation and trading executed?

At the present moment:

– Centralized Portfolio Management allocation (Portfolio Management System) is manual, although based on quantitive methods. (Insula’s investment philosophy). It will be fully automated and autonomous very soon- we are currenlty translating our 1271 signal based centralized bots into decentralized autonomous intelligent bots.

– Decentralized Trading (Order Execution Management System), is automated, through a SuperDex (Decentralized Exchange) infrastructure that pools liquidity from both Decentralized and Centralized liquidity for optimal best execution and pricing across the available liquidity network. It translates in having access to a narrow bid-ask spread across various on-chain liquidity venues

How much do you charge to manage & take cybersecure custody of Ethereum?

Funds:
– 0% if your investment does not grow.
– 30% performance fee if your investment grows.

Liquidity Pools:
0%, our liquidity pool will remain free forever- you actually get paid interests.

What happens to my funds if Insula Investment Management Ltd bankrupts and/or its website crashes/gets hacked?

Nothing can happen to your funds, ever!

Everything is still in your very own Web3 wallet, in your own hands forever, while our investment vehicles are deployed & active on the immutable Blockchain until infinity, without the need for any human intervention to proceed to deposit & withdrawal.

Thanks to Insula’s proprietary innovation, counter-party & bankruptcy risk is a nightmare from the past.
We chose to offer a disinter-mediated, transparent & secure investment solution to our clients.

With Insula, your crypto is stored on a Blockchain, the only place where crypto belongs to.

What are the costs that Insula is incurring to run such an investment system?

Unbiased Automation at the Center:

Costs such as Back Office & Administrative Costs, Technology Costs, Tax and Audit Costs are limited as they are processed by a machine. More, machines are not addicted to creative accountings & insider trading – unlike humans who will never outperform the unbiased point of view of machines.
This solves the long-lasting hedge fund integrity issue.

Creative Humans at the Edges:

The only costs that remain are reduced to Legal and Marketing costs, allowing Insula to run on a lean & extremely competitive model as a Crypto Hedge Fund.

Discover our academic framework: Insula DAO

How does Insula make money then?

Very simply put Insula makes money from:

1. Charging 3000 Insulas per hour for delivery person to person interactions.

2. Charging 30% performance fees on its investment vehicles.

This is it.

How is Insula's legal & corporate decentralized structure organized?

Our valuation structure is hybrid:
Publicly listed Blockchain Decentralized Autonomous Corporation + Distributed Insula private limited liability companies.

What are Insula's Website AML,KYC, GDPR & Business Compliance Policy procedures?

Consult Insula’s Website Terms: https://insulainvestments.com/website-terms-conditions/
Consult Business Compliance Policy: https://www.insulainvestments.co.uk/compliance

For investment :
It is outsourced to the Exchange on which you buy your crypto.

For consulting services:
We do it in house, as we developed an extensive KYC questionnaire that the client needs to fill before we can accept his payment for our service delivery.

GDPR:
We will soon switch to storing stakeholders data on a Blockchain.
We do do not commercialize our stakeholder’s data- never.
Current Data Protection Officer is Jules Becci de la Riviere. – Tier 1 Certificate from UK Information Commissioner’s Office

Tax:
Insula Invesrtment Management Ltd pays its tax on its profit to HMRC at the standard cryptoasset rate.
Insula’s employess an investors are requested by the management to pay their tax on their profit to HMRC at the standard cryptoasset individual rate.
Assets that are held by the DAO which are are unseizable by anyone (i.e liquidiity pool content), simply stay there as no individual benefits from it per se but a machine which cannnot be held liable and does not benefit from it. Even if the assets appreciate, these assets are not retrievable.

What is decentralization about?

Learn more in the following insightful article on the topic: https://www.cityam.com/the-era-of-decentralisation

What is Defi (Decentralized Finance) about?

Learn more in the following insightful article on the topic:
https://blog.coinbase.com/a-beginners-guide-to-decentralized-finance-defi-574c68ff43c4

What is the new user-controlled Semantic Web3 about?
What should I do if I still have pending questions, or if I have a very specific request that cannot be answered on this website?

We kindly invite you to book a session with us. We will answer any question you may have on blockchain and cryptocurrency- after 18 months of Research& Development over 2 countries, we know what we are talking about!

We can connect you to compliant & insitutional stakeholder in crypto & blockchain in the UK, European Region, & the Middle East.

This is a paid service per hour, at a fixed fee of 100€ per hour (paid in Insula token).

CHOOSE THE RIGHT SERVICE FOR YOUR CURRENT NEEDS
Choose from the list: https://www.insulainvestments.co.uk/investment-consulting

PAY INSULA FOR THE PRESTATION:
1-If you are already part of Insula and already own Insulas pay us straight away in Insula Tokens.
2-If you are not part of Insula yet and do not own Insula Tokens yet, no problem all you need to proceed to payment is to follow this quick guide (it takes approximately 5 minutes):

How to join Insula in 5 minutes:
1-Make sure you have purchased and own Ethereum (ETH) here.
2-Create your Metamask wallet here by saving your seed keys safely and securely.
3-Once installed, copy the address of your wallet and send the Ethereum (ETH) into your own wallet. See how to do it here.
4-Then, we will send you by email after the appointment request, the payment process and the quote in order to book the service.

Make sure to pay in advance at 100% in Insula Token trough ISLA payment rails (at the rate of 100€ per hour, minimum one hour).

How do I reach out to a member of the team?

Please book a session with us (paid service): 

https://www.insulainvestments.co.uk/investment-consulting

About Insula Token (ISLA)

Why would I buy ISLA? What is the use case? Why is it valuable today and still will be tomorrow?

Human use case:
We at Insula only accept ISLA. If you want to pay Insula a bill, you need ISLAS. If you do not already, the only thing you need is Ethereum and our payment rail will handle changing your Ethereum into Insulas and sending them to us. Simple as ABC.

Machine use case:
Our liquidity pool allows you to safely safeguard Ethereum, at the condition that you own some ISLAS. Much like you need a baby foot token to play a game, you need Insula Token to gain access to this cybersecure storage service – which actually pays you back interests for providing liquidity to the pool! A fair deal.

How does the price fluctuate?

The simplest assumptions of all:

1. Price of Insula Token goes down when people sell Insula Token.
2. Price of Insula Token goes up when people buy Insula Token.

What eventually prevents or enables Insula Token's price volatility?

Insula Token’s price volatility is a direct function of the available market liquidity. As a reminder, volatility is only a mathematical feature, not anywhere near to being a flaw. If you are willing to add or remove liquidity to the Insula Token market, you can do it here:

https://www.insulainvestments.com/investment/

Liquidity comes from staked liquidity, itself defined by how much Ethereum were inserted in the lnsula liquidty pool. If liquidity proviers add liquidity, by adding Ethereum+Insula Token, then the price stabilizes, and liquidity providers get paid interestest for each transaction they enable. If liquidity providers remove liquidity, the price is more volatile and each individsual actor has a stronger influence on the Insula Token price.

Formula for volatility:

Volatility formula

How does the price of Insula self regulates until it reaches a consensus price equilibrium?

We at Insula only accept to be paid in Insula Tokens through our very intuitive payment rails. This is the intrinsic value of Insula, beyond its mathematical absolute scarcity: real humans accept it as a mean of payment: Ourselves the first!

If a stakeholder external to the Insula network is willing to interact with a human employee within the Insula network to benefit from the services Insula delivers, then the external stakeholder needs to purchase Insulas with his own Ethereum through our payment rail– no way to get around this.

Which means that when there is demand for our goods and services, the price of Insula Token goes up against Ethereum, on a 1:1 basis – which prevents speculation to occur.

If ultimately the price of Insula appreciates too much against Ethereum because of excessive demand for our service delivery, then it is assumed an Insula Token holder whomever it may be, may opportunistically & anonymously cash out his Insulas against Ethereum, and bring back the price of Insula within a competitve price range.
The simple assumptions of supply/demand and free market are ubiquitous in the Insula economy.

Our service delivery is contiunuously fairly priced at market price, self regulated by the Insula Token holders in a free & pure competition market setting.

Therefore, our pricing is never overpriced or underpriced: we let the free market do its own job. The free market asseses as a consensus price how much Insula’s employees should be paid in for an hour of work.

How was the supply of ISLA determined?

We triggered a machine, that triggered a domino of other autonomous machines, that gave birth to 1 000 000 Insula Tokens. Therefore, the code is flawless as not human generated.

Then, we launched an Initial Coin Offering (ICO) in October 2019.

Everytime Ethereum (ETH) was deposited on the ICO smart contract, further Insulas were created, until the cap reached 1,049,675.602077199999701949 ISLA.

 Hence 49,675.602077199999701949 further ISLAS were generated trough the ICO, that closed on 31st October 2019.

Can the Insula Token supply be ever altered?

Yes it can – But only in the good sense of supply altering as it can only be reduced, but never increased.

Trough calling the smart contracrt function “burn” it is possible for owners of Insulas to
infinitesimally reduce the supply, by burning their own Insulas- but not the ones owned by others of course.

The supply can only be slowly disminshed by each Insula owners, who can burn (destroy) an infinitesimally amount of his own Insulas trough the “burn” function, which collectively reduces the supply of the token over the decades, centuries & beyond.

This only makes Insulas scarcer and more expensive in real economic terms, in case some judge that there are too many Insulas out there.

Why is ISLA a more valuable and interesting crypto vs the other existing ones?

Insula Token (ISLA) is more valuable and interesting than other cryptos because Insula Token owners can:

  1. Pay bills to Insula Investment Management in ISLA.
  2. Stake ISLA and receive interests.
  3. Sell ISLA against 100+ other cryptocurrencies.
  4. Hold ISLA as a long term investment.

Beyond these features, ISLA is a deflationary safe haven working as a hedge against fiat money supply tampering & debasement. Insula is the cryptocurrency that incentivizes our fully decentralized network.

Insula Premium

A Dedicated Account Manager

To answer your questions and walk you through any processes you are unfamiliar with

An Accounting Service

To assist with the calculation of capital gains tax owed on cryptocurrency investments

Technical Support

We can provide help with our investment funds, cryptocurrency wallets, the ISLA token, liquidity pools and more

On-Demand Analysis

We can offer analysis of individual components of our fund at your request

Market Updates

To keep our clients informed of the evolution of the cryptocurrency market as it continues to grow

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