Copy of Strategy Curator Vetting Framework
This framework provides a streamlined approach to assess prospective strategy curators for Neutral Trade vaults. Curators are evaluated across four key dimensions to ensure alignment with our risk management and yield optimization objectives.
Evaluation Overview
Excellent
5
Institutional-grade, exceeds all requirements
Strong
4
Meets all requirements with notable strengths
Acceptable
3
Meets minimum requirements
Below Standard
2
Requires remediation before approval
Unacceptable
1
Does not meet standards
Minimum Passing Score: 3.5 out of 5.0 (weighted average)
Dimension 1: Strategy & Track Record (40%)
Performance Requirements
Live Trading History
>2 years
1-2 years
6-12 months
3-6 months
<3 months
Annualized Return
>40%
30-40%
20-30%
10-20%
<10%
Sharpe Ratio
>2.5
2.0-2.5
1.5-2.0
1.0-1.5
<1.0
Max Drawdown
<10%
10-15%
15-20%
20-30%
>30%
Verification Checklist
Verified track record (exchange API, third-party audit, or portfolio tracker)
☐
Historical trade logs with timestamps
☐
Clear strategy description with defined edge
☐
Dimension 1 Score: ___ / 5.0
Dimension 2: Risk Management (30%)
Risk Controls Assessment
Maximum Leverage
Clearly defined limits (preferred: ≤3x)
/5
Daily Loss Limit
Hard stop defined (e.g., -3% to -5%)
/5
Drawdown Response
Documented de-risking procedures
/5
Position Concentration
Single asset limit defined (preferred: <30%)
/5
Key Questions
What is your maximum leverage policy?
What are your hard stop-loss limits (daily/weekly)?
How do you respond to drawdown events?
Do you have system redundancy and manual override capabilities?
Dimension 2 Score: ___ / 5.0
Dimension 3: Team & Operations (20%)
Team Assessment
Relevant Experience
Background in quantitative trading, crypto, or traditional finance
/5
Team Depth
Key person risk assessment (single operator vs. team)
/5
Current AUM
>$300M (5) / $150-300M (4) / $50-150M (3) / <$50M (2)
/5
Reporting Capability
Ability to provide live/daily/weekly performance reports
/5
Operational Checklist
Clear organizational structure
☐
Documented operational procedures
☐
Willingness to provide read-only API access
☐
Dimension 3 Score: ___ / 5.0
Dimension 4: Legal & Compliance (10%)
Entity & Compliance Check
Registered legal entity
☐
Jurisdiction disclosed
☐
Regulatory status clarified
☐
No adverse findings (sanctions, legal issues)
☐
Dimension 4 Score: ___ / 5.0
Consolidated Scorecard
Strategy & Track Record
40%
/5.0
Risk Management
30%
/5.0
Team & Operations
20%
/5.0
Legal & Compliance
10%
/5.0
TOTAL
100%
/5.0
Decision Matrix
4.5 - 5.0
Approved
Fast-track onboarding, consider higher allocation
3.5 - 4.4
Approved with Conditions
Standard onboarding, address identified items
3.0 - 3.4
Pending
Requires remediation before final approval
< 3.0
Declined
Does not meet minimum standards
Red Flags (Automatic Decline)
Any of the following results in automatic escalation or decline:
Inability to verify track record
History of significant losses without explanation
Refusal to provide standard documentation
Regulatory issues or sanctions exposure
Inconsistencies in reported performance data
Onboarding Process (Post-Approval)
Week 1-2: Setup
Execute partnership agreement
Complete KYC/AML verification
Establish reporting obligations and communication channels
Week 3-4: Integration
API connectivity setup
Risk monitoring integration
Reporting format alignment
Week 5-8: Pilot Period
Initial allocation deployment
Daily performance monitoring
Weekly review calls
Post-Pilot: Go-Live / Extended Pilot / Withdrawals
Go-live, extension of the pilot period or withdrawals from the strategy based on pilot performance
Transition to ongoing monitoring
Monthly performance reviews
For questions about the vetting process, contact: partnerships@neutral.trade
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