Profit Realization and Re-Hedging

Realizing Gains During Market Declines

When the underlying cryptocurrency market declines and the value of REBI increases, users may choose to exchange or withdraw all or part of their REBI balance, in accordance with the applicable withdrawal rules.

In such cases, users may:

realize gains generated by adverse market movements,
reduce overall portfolio drawdowns,
maintain exposure to their underlying cryptocurrency holdings without selling them,
convert part or all of their REBI value into USDT or other supported settlement methods.

This mechanism allows users to manage downside risk without closing or reducing their primary crypto investment position.

For a detailed explanation of the REBI mechanism and methodology, please refer to our Whitepaper.

Maintaining Exposure to Core Crypto Holdings

A key feature of REBI is that profit realization does not require selling or unwinding the underlying cryptocurrency position.

While REBI absorbs downside risk during market declines, the primary crypto asset remains fully exposed to future market recovery or continued growth. If market conditions improve after REBI gains have been realized, users may benefit from price appreciation of their original crypto holdings.

This approach separates risk management from asset ownership, enabling more controlled portfolio management.

Re-Hedging at New Market Levels

After realizing gains or partially exiting a REBI position, users may choose to purchase REBI again at the current market price level.

By doing so, users establish a new hedge based on updated market conditions, allowing them to:

protect gains accumulated during previous market cycles,
hedge potential future declines from a new reference price,
adapt their risk exposure as market volatility evolves.

There is no requirement to re-enter immediately. Re-hedging decisions remain entirely at the discretion of the user.

Repeated Use Across Market Cycles

REBI may be used repeatedly across multiple market cycles as part of a long-term risk management strategy.

Rather than relying on time-limited or expiring instruments, users can dynamically adjust their hedging activity by:

entering REBI during periods of increased downside risk,
realizing gains when market conditions warrant,
re-establishing protection at new price levels.

This flexibility allows REBI to function as a continuous, adaptive hedging mechanism rather than a single-use instrument.

Summary

REBI enables a structured approach to profit realization and re-hedging without the complexity of derivatives, margin requirements, or forced position closures.

Users retain full control over when and how they manage risk, making REBI suitable for investors seeking long-term exposure to cryptocurrency markets while actively managing downside volatility.

🔒 REBI is a risk management tool and does not guarantee profits or eliminate all risks associated with cryptocurrency markets. Past market behavior does not predict future outcomes.