Strategies vs. Positions

Strategies and Positions share characteristics; however, they serve distinctly different purposes within the system's architecture.

Similarities:

• Users can own both.

• Both can be designated as Static, Volatile, or Adaptive.

• Both may involve the yield layer.

Differences:

• Strategies are used to open Positions. Other users' Strategies can be used to create new positions. There is no limit to the amount of Positions that can be opened based upon a single Strategy.

• Strategies are the rules; Positions are the outcomes of those rules.

• Positions are represented via contract accounts. Strategies are only represented on the UI.

• Any user can create infinite amounts of Positions. Strategy creation is limited based on how much mHEDGE a user holds.

• Strategies are used to indicate where/to whom to direct each collected fee when a Position is opened.

• Owning a Strategy does not guarantee any yield; however, opening and maintaining a Position does.

• Positions are always user-owned. Strategies may be user-owned or protocol-owned.

• Creating Strategies incurs no direct cost but does require holding the required minimums of mHEDGE. Opening Positions incurs a .2 - .5% fee depending on type.

• Strategy ownership is non-transferable. Position ownership is transferable by user command.

(Insert visual to help illustrate differences and similarities.)