Yeah the purpose of this is for people to be able to invest in XPY while completely sharing in the upside verses limiting the downside to a maximum of 10 percent loss. In this account you would need XPY to gain 5 percent to makeup the paid fee.
a good explanation for some people can be found here. http://www.investopedia.com/terms/h/hedge.asp
These are really limited due to the fact its basically shorting XPY for the purpose of us trying to create a protection of sorts for new or current investors. It was started as a pilot to see if this would be something someone is interested in. So far most people are just confused. So maybe the financial move is probably a little to confusing. Ultimately the Goal of this program is to try to create hopefully winning situations for investors into crypto... or at minimum create limited downside propositions.
Ok, I think I get the idea but if I wanted to gamble on XPY value I would likely do better just by buying it on Cryptsy or 'trex.
Or perhaps it's just worded backwards. There should be a way to phrase it to make sense because now it sounds like a horrible deal either way.
If you buy them off cryptsy.. and the price tanks... then you loose far more then 10 percent. Thats the point of the hedge. But i agree that im sure we could word it better.