How do financial projects work?
There are many different financial projects offering their services to grow our money In the modern world.
And usually, the higher the project’s yield, the higher the risk of losing your investment.
There must be more investments than payouts for any project to work successfully in any given period of time. Most of the investments are spent on payouts, a small part goes to the reserve, and the rest is to keep project alive — employee salaries and other operating expenses. But what happens if investments and accumulated reserves are less than necessary amount to be paid out for some reason?
A project faced with such a situation would inevitably fail and would not be able of doing their duties to its investors. This happens regularly with the so-called HYIPs, which are being closed in hundreds every month and then are reopened with a new design and a new legend after a few weeks or even days. Banks are not safe against that either, although this happens very seldom to them due to the lower deposits yield and higher people’s trust.
Seasonal economic downturn, an unexpected financial crisis or situations when too many investors decided to withdraw their investments may be the reasons. Even the most reliable bank will not survive if at least one fifth of its investors will apply to return their investments in the moment.
Sometimes the project growth can’t keep pace with the too high yield which was announced before its launch by organizers. Therefore, 99% of projects cannot survive even six months after the launch! After all, they don’t have a built-in balancing system that would allow them to adapt to any conditions and correctly establish their yield!
Let’s consider this moment more detailly. Let’s assume the project is growing 3% per week. That means the number of participants and amount of their investments increase by 3% every week. So if 100000 dollars were invested in the project this week, then 103000 will be invested in the next one, 106090 in another week and so on.
The project is growing at that speed for a long time, so the the project organizers assume that it will be the same in the future.
All payments have their own time to be paid in the project. So the administration knows the dates of all future payouts and can estimate the total amount of payments for each week in the future. All these payouts should be sent to investors.
The top chart shows the total payouts that are scheduled for each week. These amounts are calculated based on the timing of all deposits payouts previously created by the project investors. Some of them are already paid, the others are still to be paid. If we combine both charts, then we will see the overall balance between investments and payouts.
In this example the project was doing well until now: there were enough investments for payouts, operating expenses and income for the project administration. Things will still be fine over the next few weeks, but a large amount of payouts is expected in 6 weeks. Perhaps it is the period of New Year’s or summer holidays.
The project team faces a problem: where to get the funds to cover all payouts? But there is no way to find money anywhere and therefore the project will be closed. And this moment is called a scam. Every project inevitably faces similar problems, and it will certainly fail if no protection mechanisms are included into its mechanics.
How are these problems solved in the Super Money Box?
There is a payouts plan with a weekly rhythm in our project. The plan is based on the growth speed of the project.
It also includes operating expenses.
The difference between the expected investments and operating expenses for each week is the amount of funds that investors can occupy for their payouts each week. This difference is called free space in Super Money Box.
The system doesn’t allow you to plan payouts more than the available free space of the week, therefore, there can be situations when no free space is available on certain weeks, and payouts should be planned on previous or next weeks.
The payouts plan and free space on it does not allow planning payments for the periods where no funds will come from investments. That allows us to solve the problem described above.
The payouts plan technology is the first Super Money Box know-how, which can not be found in any other project. It is a very useful tool that allows the administration to see the situation for many weeks ahead and to manage the project efficiently.
The project team manages the yield and allocation of free space in the payouts plan to provide stability every week.
However, there can be situations when this is even not enough to prevent the project failure. Free space planning is carried out on the accumulated statistics basis, however, the project will also fail in a case of sudden economic crisis or seasonal activity turndown.
:et’s suppose there is an economic crisis and project growth has decreased from 3 percent per week to 1 percent.
We noticed this growth decrease and changed our forecast after 4 weeks to make the payouts plan up-to-date and to prevent a dangerous situation when investors can plan payouts for dates where no additional funds are expected.
However, there are more payouts are already planned than expected investments in the coming weeks. And although the difference is visually small, but it is tens of thousands of dollars within the framework of the project, and there is no way to find funds anywhere, and the project will inevitably fail.
Let’s enlarge this segment of the chart to see that more clear.
Despite the drama of the situation, the solution turned out to be quite simple. The collapse of the project is caused by a relatively small amount of payouts, which, as we can see, have gone beyond the red chart. Now there will not be enough funds for these payouts based on the new forecast. And this problem solution is: we just need to postpone these problem payouts a few weeks later, where there is free money for them.
We just need to change the timing of problem payouts in order to avoid the entire project collapse. We move them to the payouts plan area where there is enough funds expected according to the new forecast.
There is again enough money after these payouts transfer. Instead of the inevitable project collapse we get a slight adjustment of the timing for only some payouts, and the project continues to function as if nothing has happened!
This technology helps to overcome any seasonal fluctuations or even economic crisis.
This insurance system is called the payouts plan adaptation. Super money box uses adaptation to correct any dangerous situations caused by deviations from the investments forecast. This system can work indefinitely, which gives the project unprecedented reliability. And for many years now, the Super money box has been successfully operating and taking care of the welfare of its members since May 2013.
Contact your consultant to learn more about adaptation and how to avoid it. If you do not have a consultant, then follow the link in the video description and get a high-quality consultation.
If you are not yet a member of the Super money box, then use the link in the video description to register and immediately get an experienced consultant.