Bincentive's latest statement: First and second tiers profitable, only third tier in loss

Taiwan's smart copy trading platform, Bincentive, faced complaints from users about the lackluster performance of its high-risk product "Inferno," the third installment. Users expressed frustration at not being able to promptly understand their losses due to the interest and platform fees involved. The exchange MAX, which collaborates with Bincentive, also suspended its partnership with the second product on the evening of the 13th to prevent user confusion.

Similarly, on the evening of the 13th, Bincentive issued a statement in response to media and community discussions that were deemed to provide inaccurate information. The official statement reads as follows:

Bincentive Company Statement

1. Both Panshi and Liehuo users of our BinFi product in the first and second tranches have made profits.
2. In the third tranche of BinFi product, 90% of Panshi users have made a profit of 5%, while approximately 7.12 bitcoins were lost by 10% of the funds from Liehuo users.
3. Recently, there have been discussions in the media or community that do not provide accurate information. Bincentive hereby issues the following statement:

Regarding the controversy and turmoil caused by the selection of the third tranche of the Liehuo product in BinFi, Bincentive hereby declares that Liehuo is a high-risk product. The platform clearly indicates related risk warnings and provides a clear description of the product. Bincentive regrets the lower-than-expected investment returns for Liehuo users in this tranche of BinFi.

Bincentive will do its utmost to actively address and face this issue. Hereby clarifying the following:

| Operation of BinFi Product Selection

The design of BinFi product selection allows users to freely allocate conservative income-generating (Panshi) and high-risk investment (Liehuo) products based on their risk preferences. BinFi product selection is a structured commodity that requires Panshi and Liehuo to complement each other. Participating users can be divided into asset lending parties (Panshi) and borrowing asset parties (Liehuo). For Panshi, by lending assets to Liehuo, stable interest can be obtained to increase income sources. For Liehuo, only collateral is required to have investment rights for borrowing assets. The collateral is mainly used to pay the 6% pre-interest received by Panshi investors every six months and platform fees. The remaining collateral serves as risk guarantee for price declines in the overall operation of the BinFi product selection strategy.

For the high returns of Liehuo, when investors invest 0.01 BTC per unit to exchange for the future profit rights of 0.1 BTC, it means that Liehuo is taking on higher risks. Under this design, the highest risk Liehuo faces is a 100% loss of the investment amount.

| Overall Product Returns of BinFi Product Selection

Bincentive has introduced 11 tranches of BinFi product selection, and three tranches have ended so far. In the first two tranches of BinFi, the trading strategies have achieved positive results. Unfortunately, the third trading strategy did not fit the market, resulting in a loss.

It is clarified that except for the Liehuo users in the third tranche, the other completed investment users have positive returns. Not all BinFi product selection products have incurred losses. Please do not misunderstand the situation. We provide the overall performance of BinFi after the third tranche ends (as shown in the figure), and this data is also disclosed on the Bincentive platform.

| Adjustment and Review

In response to the controversy and turmoil caused by the selection of the third tranche of the Liehuo product in BinFi, the company will comprehensively adjust and review. In addition to the original risk warning information in the BinFi subscription process, Bincentive promises to provide more comprehensive disclosure of BinFi product information and user performance to avoid misunderstandings by investment users.

In the future, for products with higher risk attributes, stricter risk control systems and more complete product mechanisms will be provided. In addition, a more rigorous KYC system will be established to ensure that users correctly understand whether the purchased products meet their risk expectations.

MAX Exchange Suspends Related Products to Avoid Confusion

To avoid user confusion, MAX Exchange has also suspended its cooperation with Bincentive on related products. The statement is as follows:

【Bincentive Investment Strategy Second Tranche, Temporarily Postponed】

Dear MAX Users,

The originally scheduled
【Bincentive Investment Strategy Second Tranche】 for subscription starting at 12:00 pm on 2020/07/14 has been temporarily postponed by MAX Exchange. This decision was made to avoid confusion between this strategy and Bincentive's platform product, 【BinFi】, and to ensure that customers understand the investment products listed on MAX Exchange. The 【Bincentive Investment Strategy Second Tranche】 listed on MAX Exchange is a specially designed investment strategy by Bincentive for MAX Exchange, which is unrelated to investment products such as 【BinFi】 on its platform. The 【Bincentive Investment Strategy】 listed on MAX Exchange does not include leveraged investments in its portfolio and has a 20% stop-loss limit.

MAX Exchange will continue to develop a diverse range of products. The temporary postponement of the 【Bincentive Investment Strategy Second Tranche】 may cause inconvenience, for which we apologize.