Choosing a Tranche

The right tranche depends on how much risk you want and how quickly you may need your money.

Senior suits you if

• You want steadier income and are content with a lower target.
• You want to be able to leave without a notice period.
• You want two layers of protection in front of you for bad debt: the Insurance Fund, then all of Junior.

Junior suits you if

• You want a higher target return and accept that income swings with option premium.
• You can give 45 days notice before withdrawing.
• You understand you absorb losses before Senior, and that your balance can fall.

Before your first Junior deposit, the app shows the worst case loss in dollars and asks you to confirm that Junior is paid after Senior and can lose principal.

Questions to ask yourself

1. Could I need this money at short notice? If yes, Senior.
2. Would a weak stretch with no Junior income be a problem? If yes, Senior.
3. Can I accept losing part of my deposit in a severe market event? If no, Senior, and size the deposit carefully.
4. Do I want most of the extra income when option premium is high? Junior.

You can hold both, splitting your deposit between them.