Question 1

What is MAG7.ssi?

Accepted Answer

MAG7.ssi (MAG7SSI) is a spot crypto index product in the SoSoValue SSI system. It aims to reflect, through one index token, the performance of a portfolio composed of seven crypto assets with high market capitalizations and liquidity. It is not an alias for any constituent asset, nor does it represent directly holding the native token of a particular chain. Therefore, holding MAG7.ssi involves the portfolio-level asset composition and index rules: changes in an individual constituent can affect the index, but the magnitude depends on that constituent's current weight. Indexing can bring multiple assets under one rules-based framework, but it does not eliminate risks from crypto-asset price volatility, constituent adjustments, or product mechanisms.

Question 2

How are MAG7.ssi constituents determined?

Accepted Answer

MAG7.ssi selects constituents from seven crypto assets with relatively high market capitalizations and liquidity. Market capitalization is used to identify larger-scale assets, while liquidity relates to whether assets can be allocated with lower trading friction when the portfolio is adjusted; together, these two conditions serve the index's tradability and representativeness objectives. This is not a subjective promise concerning the assets with the “greatest potential,” nor is it a fixed list of seven names. If an asset no longer meets the index rules or other assets meet the conditions, subsequent rebalancing may change constituents or weights. To determine what is actually included at a given point in time, refer to the index information published for that product at that time, rather than inferring it from historical constituents.

Question 3

How do MAG7.ssi weights affect index performance?

Accepted Answer

MAG7.ssi is weighted by the circulating market capitalizations of its constituent assets. A constituent's base weight can be understood as: that constituent's circulating market capitalization divided by the sum of the circulating market capitalizations of all selected constituents; constituents with higher circulating market capitalizations will generally have a greater effect on index movements. Using circulating market capitalization rather than simple equal weighting means the index does not inherently allocate the same proportion to every asset. When prices, circulating supply, or constituent eligibility change, each asset's effect on the index may also change; weights describe how index exposure is allocated, not an assessment of any individual constituent's future performance.

Question 4

How does MAG7.ssi rebalance, and what is the purpose of the buffer mechanism?

Accepted Answer

The product page states that MAG7.ssi rebalances monthly and has a buffer mechanism. Rebalancing means reviewing constituents and weights according to rules at a specified frequency and restoring the portfolio to the state required by those rules; this enables the index to reflect changes in circulating market capitalization and eligibility conditions rather than permanently maintaining its initial allocation. The buffer mechanism avoids frequent entry and exit or substantial portfolio adjustments being immediately triggered by marginal changes: small fluctuations in an asset's ranking or metrics may not result in an immediate constituent replacement. While reducing unnecessary turnover and trading friction, it also means the index does not respond instantly to every short-term market change. Both monthly rebalancing and the buffer are rules-based adjustment mechanisms and do not guarantee index returns.

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