> For the complete documentation index, see [llms.txt](https://samurai-cipher-token.gitbook.io/samurai-cipher-token-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://samurai-cipher-token.gitbook.io/samurai-cipher-token-docs/the-spot-strategy.md). # The Spot strategy he Spot strategy is formed at the expense of 6% of the investment capital of the Samurai Cipher Token (SCT). The main objective of this area is to form a long-term investment portfolio of digital assets through the Dollar-Cost Averaging (DCA) strategy, which is the regular purchase of assets for a fixed amount regardless of the current market price. Asset purchases are carried out on a weekly and monthly basis, which reduces the impact of market volatility and generates an average entry cost into a position. For effective risk management, the Spot strategy is divided into two investment strategies: a Conservative Strategy and a Risky Strategy. The block diagram of the “Spot” strategy is shown in Figure 4.
**Figure 4 - Block diagram of The Spot strategy** #### Allocation of investment capital The scheme of distribution of investment capital by strategies and assets is show in Figure 4.1.
**Figure 4.1 - Diagrams of the distribution of investment capital by strategies and assets.** All funds allocated to the Spot strategy are distributed as follows: 60% is allocated to a **Conservative Strategy**, 40% is allocated to a **Risky Strategy**. This allocation provides a balance between the stability of the investment portfolio and the potentially higher returns of promising digital assets. #### Conservative strategy The conservative strategy is focused on acquiring the most stable and liquid crypto assets, which are the foundation of the modern blockchain industry. This category includes: Bitcoin (BTC), Ethereum (ETH), Solana (SOL). These assets are the basic elements of the cryptocurrency market and ensure the functioning of a significant part of the blockchain ecosystem, including GameFi's Defi NFT, asset tokenization, and other areas of the digital economy. The main goal of the strategy is the long-term accumulation of the most reliable digital assets with a high level of institutional and market acceptance. **Capital allocation within a Conservative strategy** 100% of the funds allocated for the Conservative Strategy are distributed as follows:
AssetShare of capital
Bitcoin (BTC)50%
Ethereum (ETH)25%
Solana (SOL)25%
This structure reflects the dominant role of Bitcoin as the most capitalized and recognized digital asset, while maintaining significant exposure to the leading smart contract platforms Ethereum and Solana. #### Risky strategy The risky strategy is focused on investing in promising projects with high growth potential that can significantly outperform the market during periods of active development of the cryptocurrency industry. The portfolio includes several asset categories: **Business tokens and infrastructure projects** * Hyperliquid (HYPE) * Morpho (MORPHO) * LayerZero (ZRO) **Layer-1 blockchains** * Sui (SUI) * Avalanche (AVAX) * Monad (MON) **Layer-2 solutions** * ZkSync Era (ZK) * Mantle (MNT) **Meme tokens** * Pudgy Penguins (PENGU) * Bonk (BONK) These assets represent various segments of the cryptocurrency market and allow access to the most promising areas of industry development. **Capital allocation within a Risky Strategy** 100% of the funds allocated for the Risky Strategy are distributed as follows:
AssetShare of capital
Hyperliquid (HYPE)20%
Morpho (MORPHO)20%
LayerZero (ZRO)16%
Sui (SUI)10%
Avalanche (AVAX)10%
Monad (MON)10%
Pudgy Penguins (PENGU)4%
Bonk (BONK)4%
ZkSync Era (ZK)3%
Mantle (MNT)3%
The largest share of capital in a risky strategy is allocated to infrastructure projects and business tokens, which form the basis of future financial and inter-network solutions. Additional exposure to Layer-1 and Layer-2 networks ensures participation in the development of new blockchain ecosystems, and a limited share of meme tokens allows you to use the potential of highly profitable speculative assets at a controlled level of risk. #### Profit generation The profitability of the Spot strategy is formed due to the sale of assets that have significantly increased in price relative to the average acquisition cost generated through the DCA strategy. The sale of assets is carried out when the target levels of profitability are reached or during periods of significant market growth, when the market price significantly exceeds the average accumulation price. This approach allows you to: * Capture profits during strong market cycles, reduce the impact of emotional decisions on the investment process. * Increase the financial stability of the Samurai Cipher Token ecosystem. * To form additional capital for the further development of investment areas. #### Profit sharing The profit received from the sale of the assets of the Spot strategy is distributed as follows: 90% is allocated to Treasury to finance the further development of the ecosystem, participate in new investment areas and strengthen the financial stability of Samurai Cipher Token, 10% is allocated to increase the investment capital of the Spot strategy, which allows gradually increasing the volume of assets under management and expanding the investment opportunities of the strategy. #### The goal of the Spot strategy The Spot strategy is designed to form a long-term investment portfolio of digital assets that combines the stability of the largest cryptocurrencies and the high growth potential of promising projects. Using the DCA strategy allows you to minimize the impact of short-term market volatility and form positions in assets throughout the full market cycle. The combination of Conservative and Risky strategies provides Samurai Cipher Token with a diversified approach to money management, allowing it to simultaneously maintain the stability of its investment portfolio, participate in the growth of innovative blockchain projects, and create long-term value for SCT token holders. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://samurai-cipher-token.gitbook.io/samurai-cipher-token-docs/the-spot-strategy.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.