Unlike traditional Price-Weighted Indexes that use simple arithmetic means to track the price movements, which in turn can overstate growth, CryptoGT uses the geometric mean method that is considered to be more appropriate, as it describes both exponential and varying growth over a period of time. This is otherwise known as the compound rate of return. All Cryptocurrencies have an equal impact on the index price.

The Administrator of the Index will review the constituents one week before the end of each quarter to decide whether a Cryptocurrency needs to be replaced, taking into consideration its market capitalization ranking and liquidity, and ensuring that the Index keeps tracking 12 major Cryptocurrencies. 

Each constituent’s real time pricing data derives from CryptoGT’s multiple Pricing Sources (Liquidity Providers). The GTi12 algorithm calculates the Index bid and ask prices for each constituent making up the Index’s buy or sell value (Top of the Book). The Index is rounded to four decimals.

Initial Multiplier is 1 and it will be revised every time a constituent is replaced. The new multiplier will be published here.

The replacement of a constituent should not have an impact on the price level of the Index. If the Index closes at $20 at the end of a quarter and a Cryptocurrency is replaced with another Cryptocurrency in order for the Index to constitute the top 12 Cryptocurrencies by market capitalization, the Index will re-open at $20. This is achieved by adjusting the multiplier.

The new multiplier is calculated using the following formula:

 

The above chart indicates a daily historical performance for informative purposes only and gives no indication of future outcome.

If coin prices are unavailable due to unforeseen events, the Index will be calculated using the most recently updated prices. If a currency price is unavailable for more than two consecutive Index Business Days, CryptoGT reserves the right to remove the Constituent from the Index and perform an extraordinary reconstitution. In such a scenario the Administrator in conjunction with the risk team reserves the right to pause trading in order to protect investors’ interest, and it cannot be held responsible for any losses incurred.

The Index is designed and calculated to strictly follow the rules of this methodology and it might not be representative in every case, nor achieve its stated objective in all instances. The Cryptocurrency market can be extremely sensitive to market volatility and liquidity, and this can have a major impact on the quality or amount of data available to the Index’s algorithm. In such cases, the Index might produce unpredictable or unforeseen results.

 

Furthermore, prices are received from third party sources for the purpose of forming the Index’s value, therefore, any interruptions in price data beyond the Administrator’s control, can cause interruptions in pricing, and CryptoGT can not be held responsible in any case.

In addition, there are other several risks associated with the valuation of the Index such as, interruption of trading, distributed denial of service, hacking, cross-national legal environment, unstable technological environment and suspension of market trading in Cryptocurrencies which might have a major impact on the Index’s Value.