What is Soft Cap?
Soft Cap (Soft Capacity) is the minimum limit determined by our team for the launch of an investment strategy. This means that the strategy will only start working once it reaches the required amount of deposits.
After the Soft Cap is reached, rewards will start to accrue.
If the strategy does not reach the required amount of deposits, it will not be launched, and clients' funds will be available for immediate withdrawal, just like during the Soft Cap raising stage.
For each strategy, the Soft Cap amount is determined separately. You can check this amount, as well as the current progress in collecting the required amount, on the strategy page in the "Strategy Details" section, as well as on the deposit page.
Strategy details
Deposit page
Why is Soft Cap implemented?
The Soft Cap is set up for several reasons:
Some investment strategies become profitable and can provide good returns to clients only with a specific amount of investments.
Trading strategies like Algo Trend and others are managed by private investment funds that work only with large investors, starting from $100,000.
What are the benefits of Soft Cap?
There are following benefits for EarnPark users:
Users gain access to strategies that were initially closed to retail investors. These strategies are expected to yield high returns, but currently, they are only available to large investors or organizations.
Since our mission is to democratize the investment market, the introduction of the Soft Cap is a good way to achieve this.
Users have the opportunity to receive a higher return if they make a deposit into a strategy during the Soft Cap raising stage.
Typically, the boost adds ~2% to the standard APY.
However, the boost rate depends on the actual performance of the strategy in each calculation period.
You can find the boost rate on the strategy page next to the "Boost" tag.
Strategy page
What does the deadline for collecting the Soft Cap mean?
We limit the Soft Cap raising process to a specific period, up to 3 months or less.
If the strategy does not reach the required amount of deposits, it will be halted (the strategy status will change to "Soon”), and only withdrawal or a transfer to another strategy will be available.
If the users show renewed interest in the strategy by subscribing to it or letting us know about it via support or other communication channels, the strategy will be relaunched.
How is Soft Cap calculated?
The required amount to launch each strategy is determined separately and depends on various factors.
Some strategies, such as Algo Trend, work with multiple coins (BTC / USDT / ETH), and they have a shared Soft Cap.
This means that the strategy will be launched when it reaches the required total investment amount across all coins, rather than a specific one. This accelerates the collection process and allows investors to receive rewards more quickly.