1.4 Risk Management

The risk traditionally associated with investments in the crypto world, although high, is mitigated in the MerlinProtocol project by the distribution of users' investments over a large number of DeFi's services and products, ensuring a trend that broadly mirrors the general DeFi market trend of the period.

For a user interested in investing in the crypto world there is a significant advantage in terms of time required to choose the investment portfolio, which instead of weighing on the investor is delegated to transparent and objective algorithms that constantly analyze the market trend, or in the case of actively managed funds is delegated to capable managers identified in an impartial and meritocratic way.

This approach leads to three main advantages it reduces the gas fees required to buy different tokens individually; it diversifies the user's portfolio by lowering the risk of exposure to a certain project even if little capital is invested; thanks to the automatic re-balancing of passively managed funds or the skill of the best managers, the user will be able to buy the best tokens in circulation, including the one that will be the next "unicorn".