The SAG TrustLayer Program (STLP) is designed to function as a neutral, third-party layer that safeguards both Trading Partners – like trading bots, scripts, and copy-trading experts – and Wallet holders or users who utilize these services. Traditional financial markets offer similar services through a combination of custodians, brokerages, and regulated asset managers. SAG creates this structure using secure layers for online assets and the entities managing them. The STLP was built to address the challenge of trustless trading across multiple platforms, while remaining user-friendly for the average investor. To ensure impartiality, SAG strictly refrains from promoting or endorsing any Trading Partner, and avoids listing active Trading Partners directly on the platform.
Mitigating Risks in Online Trading
The online trading industry faces unique risks that require specific mitigation strategies. SAG acts as an independent verification and trade execution channel, similar to how Google and Apple vet applications on their platforms, or how FINRA enforces standards among its members. Proposals from regulatory bodies aim to implement similar safeguards, often mirrored by administrators and custodians in fund management.
- Verifiable Track Record: All Trading Partners partnering with SAG must submit verifiable data (minimum 90 days) followed by a testing period of 30 days or 100 trades. During this testing phase, trades are executed on a trading account controlled and monitored by SAG to confirm advertised performance.
- Capital Segregation: Trading Partners never have direct or indirect control over user-transferred assets.
- Transparent Reporting: Users can consistently view their performance across various trading endpoints through an easy-to-understand and verifiable reporting system.
- Flexibility: Users have the option to connect their existing brokerage or exchange accounts, or simply integrate with the SAG ecosystem to seamlessly access liquidity and trade across multiple platforms in the background.
Important Considerations
It’s crucial to remember that all trading involves inherent risks, including but not limited to price fluctuations, technical failures, liquidity issues, and broader market meltdowns. Always exercise caution and only invest capital you can afford to lose, regardless of a Trading Partner’s past performance or forecasts.
Benefits for Trading Partners
- Verified Third-Party Data: Trading Partners can showcase their performance data as vetted and officially approved by SAG.
- Simplified User Onboarding: Users can connect to your bots/scripts with a single click, eliminating complex technical setup across various jurisdictions and exchanges.
- Protection from Trade Theft: SAG doesn’t provide real-time trade data, but instead publishes verified 24-hour report snapshots. This deters unauthorized parties from replicating or “copying” trades.
- Powerful API Integration: Trading Partners can leverage the SAG API to effortlessly obtain performance, earnings, and usage reports.
Maintaining Third-Party Status
To uphold its neutral third-party role, SAG doesn’t manage or hold user capital. It functions solely as the API layer that reports balances and performances. Payment processing and exchange services are provided by licensed institutions depending on the jurisdiction.
For details on becoming a Trading Partner with STLP, visit the SAG Labs program here.
Key Points Reiterated
- Verified Third-Party Data: Trading Partners can showcase their performance data as vetted and officially approved by SAG.
- Simplified User Onboarding: Users can connect to your services with a single click.
- Protection from Trade Theft: SAG’s reporting system safeguards against unauthorized trade replication.
- Powerful API Integration: Trading Partners benefit from a user-friendly API for reports.