Risks

WHY SHOULD I TRUST WHALELEND WITH MY MONEY?

We are a VC-backed company with a long-term plan to be a key player in the cryptocurrency investment community. There are many products to come and relationships to be built. To get to where we want to go we need your support for years to come. It is simply not in our best interest to trade short-term gains for long term potentials. We value transparency with our users more than anything else. The company is located in Helsinki and can also be verified from the Finnish trade register. Feel free to come say hi and meet us in person, or drop as an email to hello@whalelend.com. Whalelend uses industry-leading security best-practices for cryptocurrency management.

THERE’S NO SUCH THING AS A RETURN WITHOUT A RISK. SO WHAT ARE THE RISKS?

There are two main risk factors in providing funding to margin traders:

  • The cryptocurrency exchange becoming insolvent (e.g. if an exchange is hacked and everyone takes a loss)
  • Failure in cryptocurrency exchange risk-limiting trading engine. This scenario is seen to be extremely unlikely and has not occurred in major cryptocurrency exchanges. You can read more about this topic here

Providing liquidity to margin funding is NOT risk-free, but in our opinion and analysis of current level of return, the gains outweigh the risks.