How does BOTS determine the risk levels on its platform?

The BOTS platform offers users the opportunity to engage in automated trading through a diverse range of bots. To assist users in understanding the potential risk associated with each bot, BOTS categorizes them on a scale of 1 to 12, with 1 being the least risky and 12 being the riskiest.

This FAQ article aims to provide clarity on how BOTS determines these risk levels and what they signify for investors.

How does BOTS calculate the risk levels assigned to its bots?
BOTS determines the risk levels by analysing the annual volatility of returns generated by each bot. The platform examines various factors such as trading behaviour, asset diversification, and the presence of cryptocurrencies within the bot's portfolio.

What does a risk level of 1 to 3 imply?
BOTS assigns risk levels 1 to 3 to bots that are considered stable investments with low volatility. These bots are likely to offer relatively lower potential returns but are also associated with lower risk. Risk level 1 is comparable to a savings account in Euros.

What does a risk level of 4 to 6 signify?
Bots categorized under risk levels 4 to 6 still exhibit some stability. These bots typically operate within a well-certified, supervised wallet and invest in multiple stable assets that are not strongly correlated with each other.

How about risk levels 7 to 9?
Bots falling under risk levels 7 to 9 are relatively stable for cryptocurrencies. These risk levels are assigned when the bot's portfolio includes a coin that is expected to have relatively low price fluctuations. The specific risk level depends on the frequency and volume of trades involving volatile coins.

What do risk levels 10 to 12 indicate?
Risk levels 10 to 12 suggest higher volatility and risk within the bots' portfolios. If the base asset of a bot is inherently volatile, there is a higher likelihood of it being assigned a risk level of 12, indicating the highest level of risk among all bots on the platform.

Can the risk levels assigned by BOTS predict future performance?
No, the risk levels appointed by BOTS are based on historical data and do not guarantee future outcomes. It is important to remember that investments inherently carry risks, and the assigned risk levels serve as indicators to help users make more informed decisions.

Understanding the risk levels on the BOTS platform is crucial for investors to assess the potential volatility and risk associated with each bot. The scale ranging from 1 to 12 provides a general overview, with lower risk levels indicating greater stability and higher risk levels suggesting increased volatility. However, it is essential to conduct additional research and consider other factors before making investment decisions, as past performance may not necessarily reflect future results.

Should you encounter any difficulties or have further questions, it is advisable to contact the BOTS Support team for assistance at support@revenyou.io.