At Turing Capital, we are obsessed with understanding and unraveling the forces that move the market through a prism of rigorous logic and objectivity. That is why we believe that risk management is so important in a market that has just been born:

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Risk Management

It is important to note that we follow very rigorous criteria when investing in digital assets. These must be:

- Audited protocols

- Track-record protocols

- Controlled leverage

- Smart contract insurance

- Diversification

*We only use very limited leverage to generate market neutral positions, not to invest in a leveraged manner or to short positions.

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At the same time, there are risks of hacking or insolvency of centralized exchanges. We prevent these risks thanks to our custodian Fireblocks, the No. 1 institutional cryptocurrency custodian, which has developed the following security tools:

- MPC (multiparty computing) is the next generation of private key security. MPC is a cryptographic technology that allows multiple parties to hold secret information and then solve a problem that requires the entry of all these secrets in a decentralized manner, without ever sharing the secret information with each other. Such a key is never collected as a whole, neither during the first creation of the wallet nor during the actual signing. At the same time, the distributed nature of MPC allows team members to require multiple authorizers for a transaction and sign transactions without being in the same location.

- Intel SGX: A hardware-level enclave that isolates selected code and data within a system, similar to an operating system HSM. It is designed to protect cryptographic material, the cryptographic algorithm and the execution of sensitive parts of the software from both insiders (such as rogue administrators) and hackers.

- Policy Engine: The Fireblocks policy engine, which allows organizations to configure transaction-specific approval policies, represents the next step in securing digital assets. The policy engine allows users to configure a list of rules that affect how transactions are handled and approved. A rule can set whether a transaction is blocked, approved or requires additional signatories using filters such as origin, destination, asset and amount.

- Settlement layer: the sending wallet opens an encrypted tunnel with the receiving wallet to query the deposit address to send the transaction to. The encrypted tunnel is protected within a secure enclave (hardware termination) in both the sending and receiving wallets.

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In addition to this, Fireblocks has the best insurances to cover any potential risk.

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To counteract the possible insolvency of a centralized exchange, we take the following measures:

1. We only operate on the most robust, compliant, battle-tested exchanges with the best infrastructure.

2. We diversify our funds and operate in different exchanges.

3. We never keep more than 30% of our NAV in all centralized exchanges .

4. We have developed strong relationships with the exchanges in which we operate.

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