Questions
Straight answers to the questions people ask before they try Arlo. Type to filter them.
The basics
Is this a Ponzi scheme?
No. Every payout comes from one Arlo’s own wallet: the money its two people put in, plus or minus what the Trader made. Nobody is paid with a newer member’s money, and there is no reward for bringing people in.
How can the Backer earn 6%?
The Trader pays for the chance to trade 3× their money. Arlo’s fee is $150, and $120 of it goes to the Backer as the bonus. The Backer is paid first, and the Trader’s money takes losses first.
Is the bonus certain?
No. It is paid only if the wallet covers it at the end. In a fast market it can be paid in part, or not at all.
How does Arlo make money?
Arlo keeps $30 per Arlo, its share of the fee. It is paid last, after the Backer, and only from what is left. If an Arlo ends badly, Arlo earns nothing from it.
Why does the Backer put in twice as much?
So the Trader trades 3× their money. The Backer’s larger amount earns the bonus, and the Trader’s smaller amount takes losses first.
Is someone trading against me?
Arlo never takes the other side of your trades. Your trades go to GMX.
Money and losses
Can I lose more than I put in?
No. A Trader can lose their $1,000, and a Backer their $2,000. Nobody is ever asked to pay more.
What does a bad outcome look like?
For a Trader: if trading stops at the line, you lose your $800 of loss room and the $150 fee. You get back the $50 cushion, less any cost of closing trades for you. For a Backer: the common bad case is a smaller bonus. Losing some of your money takes trades closing far past their stops in a crash. On our worst-day test that happened to 0.04% of test Arlos.
Can I get my money out early?
Before your Arlo starts, yes: cancel your place and get all of it back. After it starts, no. A Trader can end their Arlo early, which pays everyone sooner.
Who holds my money?
Nobody. While you wait, it sits in the queue’s code. Once your Arlo starts, it sits in that Arlo’s own wallet. Neither the Trader nor Arlo can send it anywhere outside the rules.
Why did my receipt show a gain, but I got less cash back?
Trading costs, any cost of closing trades for you, and the fee all come after the trading result. Your receipt lists each one beside the cash.
Matching and people
Do I get a say in who I am matched with?
No. Places match in the order they arrive. Neither side picks the other.
What if the Trader disappears?
Nothing changes. The Arlo runs to its end, any open trades close, and the payout runs. The Trader is not needed for any of it.
Can I end up on both sides of my own Arlo?
Not with the same wallet: matching skips your own places. With two wallets you could, but you would pay the fee just to sit on both sides, and gain nothing.
How many Arlos can I be in?
Up to four at once, waiting or running, as a Trader, a Backer or both.
How long until I am matched?
It depends on who is waiting on the other side. If someone is, your Arlo starts right away. If not, your place waits in line. Nobody can promise a time.
Do you check who I am?
No. There is no identity check. Your contribution is the only way in.
Can I start with less?
Starter is the smallest size: $1,000 for a Trader and $2,000 for a Backer.
Trading
Why is there no leverage limit?
Each trade has a fixed size cap instead, $15,000. At a fixed size, more leverage means less margin at risk. The caps and the loss room do the limiting.
Why can I not trade every GMX market?
Arlo allows only markets that GMX prices with its live price feed, so the code can always value your trades.
Can I trade without a stop?
Yes, but a trade with no stop counts its whole margin against your loss room, because nothing else limits its loss.
What happens to my trades at the end?
Any trade still open closes at the market price. The app warns you 48 and 24 hours before, so you can close first at your own price.
When things go wrong
What if Arlo the company shuts down?
Running Arlos do not need it. Anyone, you included, can start the closing and the payout once an Arlo has ended. The money still goes only where the rules say.
What if GMX or Arbitrum stops?
An Arlo cannot close trades while GMX is paused, so the payout waits until it can. Losses on GMX reach the wallet, whatever Arlo’s rules say.
What if there is a bug?
It stays until new code replaces it, and running Arlos finish on the code they started with. No independent firm has reviewed the code yet.
Nobody can make me whole?
No. Nobody owns an Arlo, so nobody can move its money outside the rules: not to take it, and not to give it back.
How is this taxed?
We cannot advise on tax. Keep your receipts: each one shows what you put in and what came back.