Overview
At Crypto Asset Rating (CAR) we offer multiple indices which make it easier for investors to make decision on which tokens they should add in their own portfolio. We offer indices based on the types of crypto currencies/tokens which includes
- 1. Currency Index
- 2. Security Index
- 3. Utility Index
CAR’s Indices’ index calculation varies according to the categorization of the indices. At a broad level, indices are defined into categorization of Market Capitalization Weighted. Indices also offers capped versions of a market capitalization weighted index where single index constituents or defined groups of index constituents, such as sector, geography i.e. County of issuance, are confined to a weight.
Illustration
| Day 1 |
|
Number of Outstanding Tokens |
Price per Token (t - 1) |
Price per Token (t) |
Market Cap (t - 1) |
Market Cap (t) |
| Token A |
62,000,000 |
75 |
77 |
4,650,000,000 |
4,774,000,000 |
| Token B |
280,000,000 |
0.9 |
0.8 |
252,000,000
|
224,000,000 |
| Token C |
15,000,000 |
15 |
52 |
825,000,000 |
780,000,000 |
| Token D |
540,000,000 |
3 |
3.25 |
1,620,000,000 |
1,755,000,000 |
| Token Market Cap (t - 1) |
7,347,000,000 |
| Token Market Cap (t) |
7,533,000,000 |
| Index Value (t - 1) |
10,000 |
| Index Value (t) |
10,253.1646 |
Roles
Index is managed by Index Committee and Steering Committee. Members have rigor around the index calculations. After doing thorough research, Financial Analyst team has selected the best tokens which got included in the index. Members periodically review the Business actions that may affect the index constituents, Business/Corporate actions may includes Merger/Acquisition, spin off etc. Specified roles that includes the periodic review meetings, set the criteria for the selection/removal of the tokens, resolve the technical glitches, promptly communicate the changes in index constituents etc.
Index Committee – CAR’s Index Committees serve as the index governance body and oversee the design, maintenance of indices. Index Committees seek to ensure index is maintained in accordance with their respective methodology by reviewing all methodologies to ensure they continue to achieve their stated objectives and overseeing any changes to an index and/or methodology. All Index Committee comprised of Financial Analyst Team as well Corporate Advisors.
Role of the Internal Committee is to systematically reassess the various dimensions of the Token Universe for all the indexes on a fixed quarterly timetable. A committee involves in a comprehensive review of the Indexes.
Responsibility
Indices are maintained by an Index Committee. Most committees are comprised of professional members of CAR. Members include the Financial Analyst team they are the member who primarily responsible to maintain/calculate the indices. Secondary responsibility of Steering committee, the committee members include the professionals from Corporate Advisors Team as well as Financial Analyst Team. At each meeting, the Index Committee review pending actions that may affect index constituents, statistics comparing the composition of the indices to the market, companies that are being considered as candidates for addition to an index, and any significant market events. In addition, the Index Committee may revise index policy covering rules for selecting token, treatment or other matters.
CAR’s Index Committees reserve the right to make exceptions in the treatment if the need arises. In any scenario where the treatment differs from the general rules stated in this document, clients will receive sufficient notice, whenever possible.
Market/Client communication Policies
CAR communicates and consults with clients through various channels using, index announcements, emails and the distribution of data files. In addition, CAR has a designated client support team available to respond to inquiries. When a material change to an index methodology is considered, CAR will publish that on its website. A material change alters the index objective or changes the methodology in a way that affects the likelihood that the index will achieve its objective. All index constituents are evaluated daily for data needed to calculate index levels and returns. All events affecting the daily index calculation are typically announced via email to clients.
For any inquiry, comment, or complaint regarding the indices, a Client Services at (Need to add Email).
Continues Review Policy
CAR maintains quality review processes for the calculation and maintenance of its indices that include a periodical quality checks on incidents or errors, if any, that triggered during any days and identify causes, determine repetitive issues and evaluate whether any long-term changes are necessary. Incidents and errors are tracked through internal system.
Policies to add/remove tokens
Constructing and Maintaining the CAR’s Indexes involves the following steps:
Each of these steps is described in Methodology document separately.
- • Defining the Token Universe – CAR index consists of 50 tokens based on the different criteria which are listed in Methodology document.
- • Identifying Eligible Tokens to add/remove from Index – Each token gets selected based on the different criteria which are listed in Methodology document.
- • Classifying Tokens Utility/Security – Tokens get categorized based on Utility/Security, detail is explained in Methodology document.
Disclaimer
This document has been prepared solely for informational purposes based upon information generally available to the public and from sources believed to be reliable. The Content shall not be used for any unlawful or unauthorized purposes. CAR do not guarantee the accuracy, completeness, timeliness or availability of the Content. CAR Parties/Members are not responsible for any errors or omissions, regardless of the cause, for the results obtained from the use of the Content.
Governance
