Where and how funds are located can pose a major challenge in terms of risk management. This is strictly controlled and allows us to diversify and balance risk.
Even if a project fails, our diversification will leave liquidity intact due to the Capital reserve balance. Our current asset allocation chart is shown here for your information.
By doing this, EnFoid always enough cash flow and liquidity to be able to pay all lenders should the need ever arise.
Equity-based Activities are directly covered by Reserved Capital and external Margin.
To further protect the funds assigned to each equity project, we commit only a small portion of capital to the Institution. We then use margin to control the total cash at risk. Examples of this implementation can be found in the following areas:
In essence we ensure if one project fails, the margin difference is covered at all times.
SwingFish and Swap accounts are updated at the beginning of each week to maintain the stability of the reserved capital.
All development and support of cash-based activities are covered by liquidity or client debt as detailed in the EnFoid Terms of Service. This includes:
all Invested Assets lended and Company Owned, not including Liquid/Cash** updated automatically 1 week ago