2️⃣Subscriptions
Last updated
Last updated
STFX Subscriptions is a completely trustless and non-custodial way to automatically invest in STFX Vaults. Subscriptions allow Investors to allocate funds to their favorite Trade Managers to participate in all of their trades. The traders, on the other hand, get access to instant liquidity from their Subscribers which allows them to enter trades immediately.
A subscription to a trader is essentially a reservation of a previously defined amount, allowing the Trade Manager to use the subscribed amount for their future trades when certain conditions are met. This enables great capital efficiency because subscribed funds are not "exclusive" to specific traders, compared to other platforms. A user is able to subscribe up to 100% of their account to multiple Trade Managers, while also using the capital in their own trades and having the option to invest manually. Only when a Trade manager opens in a vault, the subscribed funds are directed towards it. At all other times, the subscribed amount is at full disposal of the investor. STFX Subscriptions are akin to high speed capital calls in traditional finance.
A subscribed amount will be automatically invested in every future trade of a given trader. Maximum number of trades a manager can hold at a time is 3 (depending on manager's Staking Tier). So if a user subscribes $1,000 to a Trade Manager, then the maximum amount of capital that the manager can use is $3,000.
The advantage of Subscriptions is that the capital remains inside the investor's STFX balance until it is utilized in a trade, and is also auto-returned back to a user on the completion of any trade, allowing for an hyper-efficient and continuous flywheel of investments.
