tgfundRisk Strategy
Our disciplined framework for managing investment risk.
TGFund Club employs a disciplined risk management framework to identify, assess, and mitigate risks associated with early-stage investments, particularly within the evolving crypto, blockchain, and Web3 ecosystems. While high-reward opportunities exist, we recognize that these markets carry unique and amplified risk exposures. Our risk strategy is grounded in the following principles:
1. Portfolio Diversification
We mitigate concentration risk by investing across a balanced portfolio of sectors including Web3 gaming, AI-driven protocols, DeFi platforms, infrastructure tools, and Layer 1/Layer 2 blockchains. We target varied stages—from seed to growth—to hedge against timing and technological risk.
2. Regulatory and Compliance Oversight
TGFund Club conducts rigorous due diligence to evaluate each investment’s regulatory exposure. We monitor global developments in digital asset compliance, KYC/AML obligations, securities classification, and token issuance frameworks. We also engage legal counsel in the U.S. and key jurisdictions to maintain alignment with applicable securities laws and exemptions, such as Regulation D.
3. Smart Contract and Technical Audits
For token-based or protocol-layer investments, we prioritize ventures that have undergone smart contract audits by reputable third-party firms. Additionally, we assess the team’s technical strength, codebase quality, and security practices to reduce the likelihood of exploits or vulnerabilities.
4. Tokenomics and Liquidity Risk
We closely examine tokenomics models, vesting schedules, and potential exit scenarios. Preference is given to projects with clearly defined utility, sustainable token supply mechanisms, and long-term value capture. We also evaluate liquidity lock-ups and exchange risks where applicable.
5. Custody and Asset Protection
TGFund Club utilizes institutional-grade custody solutions for holding digital assets. We leverage multi-signature wallets, cold storage protocols, and insurance-backed custodians to safeguard investor capital from theft, hacking, or operational failure.
6. Macro and Market Risk Monitoring
The fund continuously monitors macroeconomic indicators, crypto market volatility, interest rate policy, and geopolitical trends that could affect portfolio company performance. Adjustments to position sizing and allocation are made as needed based on shifts in market dynamics.
7. Exit Planning and Scenario Analysis
We develop multiple exit strategies for each investment, whether through token generation events, strategic acquisitions, or IPOs. Scenario analysis is used to model downside cases, dilution risks, and time-to-liquidity.