Strategy Overview

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Our Approach

Tori generates yield through market-neutral trading strategies - the same approaches that hedge funds and proprietary trading firms have used to generate consistent returns for decades. These strategies are fundamentally different from speculating on whether crypto goes up or down. Instead, they capture returns from market inefficiencies - predictable price relationships that temporarily go out of line. Why market-neutral? Traditional yield sources in crypto (lending, staking, liquidity provision) are often correlated with market performance. When crypto crashes, yields typically compress or disappear just when you need them most. Market-neutral strategies aim to generate returns regardless of market direction. Whether Bitcoin goes to $100K or$20K, the goal is the same: consistent, risk-adjusted returns from capturing inefficiencies.

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Strategy Types

Tori deploys capital across multiple complementary strategies. As market conditions evolve, we may expand our strategy set to capture new opportunities while maintaining our market-neutral approach.

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Futures Arbitrage

How Futures Arbitrage Works

The opportunity: Futures contracts often trade at a premium or discount to spot prices. This difference (called “basis”) is predictable and can be captured as yield.How we capture it:

1. When futures trade at a premium to spot, we buy the asset in the spot market
2. Simultaneously, we sell the equivalent futures contract
3. We hold both positions until the futures contract expires
4. At expiration, the prices converge, and we capture the spread

Example scenario:

• BTC spot price: $50,000
• BTC 3-month futures: $51,500 (3% premium)
• We buy spot, sell futures
• At expiration (assuming no change in BTC price), we’ve captured ~3% in 3 months
• Annualized, this could be ~12%

Note: This is a simplified example. Actual execution involves additional considerations like funding rates and margin requirements.Why it’s market-neutral: Our long spot position and short futures position offset each other. If BTC goes up or down, the gains on one side are offset by losses on the other. Our return comes solely from the basis.

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Calendar Spreads

How Calendar Spreads Work

The opportunity: The price relationship between futures contracts with different expiration dates sometimes deviates from fair value.How we capture it:

1. We identify when near-term and far-term contracts are mispriced relative to each other
2. We go long one contract and short another
3. We wait for the relationship to normalize
4. We close both positions for a profit

Example scenario:

• March BTC futures: $50,000
• June BTC futures: $52,000 (4% spread)
• Historical fair value spread: 2%
• We buy March, sell June
• When spread normalizes to 2%, we’ve captured the excess

Why it’s market-neutral: We’re betting on the relationship between two contracts, not on the direction of BTC itself.

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Options Strategies

How Options Strategies Work

The opportunity: Options markets frequently misprice volatility across different strikes and expirations, creating systematic opportunities.How we capture it:

• We identify when implied volatility is mispriced relative to realized volatility
• We construct delta-hedged positions that isolate volatility exposure
• We capture the difference between implied and realized volatility

Why it’s market-neutral: By delta-hedging our options positions, we neutralize exposure to price movements and isolate the volatility component.Additional strategies include:

• Selling overpriced volatility when implied vol exceeds realized
• Capturing volatility term structure inefficiencies
• Exploiting put-call parity deviations

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Money Markets

How Money Market Strategies Work

The opportunity: Access to institutional-grade short-term lending rates that typically aren’t available to retail participants.How we capture it:

• Deploy capital into high-quality, short-duration instruments
• Access wholesale rates across global markets
• Maintain high liquidity and low duration risk

Why it’s market-neutral: Money market instruments have minimal price sensitivity and provide stable, predictable returns.

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The Market-Neutral Principle

All of Tori’s strategies share a common design philosophy:

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What This Means in Practice

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Risk Management

Sophisticated risk management is fundamental to our strategy execution:

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Position-Level Controls

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Portfolio-Level Controls

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Operational Controls

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What We Aim to Avoid

Our strategy design explicitly seeks to minimize exposure to:

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Transparency & Verification

Everything we do is designed to be transparent and verifiable: Current yield rates are displayed in the app and updated regularly.

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Understanding Strategy Risks

All trading strategies involve risk. Here’s what we manage and what remains: Our risk management doesn’t eliminate risk - it works to reduce and manage it systematically. See Risk Disclosures for complete information.

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Next Steps