The DF System Investment Plan.

We recently published a brief “First Thoughts” article about the DF System online investment program.  Here’s how we summarized their investment plan in that article:

For the investor, DF System offers one investment plan.  The website states that “you will be daily paid from 0.5% to 5.36%, except on the weekends, during 56 work days. The percentage depends on the bot’s trading performance, trader’s activity, the current situation of the cryptocurrencies market and many other factors.”  The minimum investment is a very affordable $20.

Analysis of the DF System Investment Plan.

The DF System investment plan has two characteristics that make it a bit troublesome to analyze.  First, it only pays interest on work days and, second, the daily interest that it pays can vary from 0.5% up to as much as 5.36%. 

Let’s begin by converting 56 work days to calendar days.  Since there are roughly 22 work days in a 30 calendar day month, you can convert work days to calendar days by multiplying by the conversion factor of 30/22.  If you do this for the DF System investment plan, you find that the 56 work pay plan is roughly 77 calendar days (11 weeks) long. 

Let’s first determine how long it would take you to break even with this investment plan.  Of course, this depends on the rate of interest that you receive.  In the worst-case scenario, you will receive the minimum interest of 0.5% per work day.    If you divide 100% by 0.5%, you find that, in this case, it will take you 200 work days to break even.  Since the plan is only 56 work days long, it will be finished before you break even and you will lose money.  Next, let’s take the best-case scenario where you will earn the maximum interest of 5.36% every work day.  In this situation, dividing 100% by 5.36%, you find that you will break even in roughly 19 work days.  This converts to around 26 calendar days.  This turns out to be one third of the way through the investment plan.  This should tweak your interest a little.  If you multiply the maximum daily rate of 5.36% by the 56 work day length of the program, you will get that the maximum total GROSS interest that you can earn from the investment plan is 300%; the plan enables you to triple your money.  So, as we already discovered, if you want to break even, this will occur one third of the way through the plan.  At a number of points in the website, there is mention of making 300% profit.  As you can see, this will only occur if you receive the maximum rate of return every day — which is highly unlikely. 

We still haven’t answered the question of when the investment plan will really break even.  Of course, there is no way of precisely determining this since the rate of return is unknown.  The best that we can do is to ASSUME a return and base our answer on this assumption. So, we will do what we usually do in this type of situation and assume that the return you will receive from this plan will be the AVERAGE of the lowest and highest possible returns.  The average of 0.5% and 5.36% is 2.93%.  So, we will determine a breakeven point using that return.  Dividing 100% by the assumed daily return f 2.93%, we get an approximate breakeven point of around 35 work days.  This converts to around 47 calendar days which is close to seven weeks.  The bottom line is that the investment plan is 11 weeks long and it will probably take you in the neighborhood of seven weeks to break even.

Next, let’s determine what the average daily net profit that you can expect to earn from this investment plan.  We refer to this as average daily net interest or just as DNI.  Using our assumed gross daily work day interest of 2.93%, the total GROSS interest that you will receive in the 56 work day plan will be 164% (2.93 x 56).  Since this includes your investment, you must subtract 100% in order to get the total NET return that you will receive, or just 64%.  Averaging this out over the 77 CALENDAR day length of the investment plan, by dividing by 77, you get a DNI of around 0.83%. 

You must remember that these results of our analysis that led to a breakeven point and a DNI for the investment plan are based on a very big assumption as to what the average daily return from the plan will be.  However, this is the best that can be done.  At least it should put us in the right ballpark.  That might be the most important thing when analyzing any HYIP.  So, in summary, and in very general terms, we can expect the DF System investment plan to break even in the neighborhood of seven weeks.  Maybe it will work out to be six or eight weeks.  However, again, seven weeks should be in the right ballpark.  Likewise, if you averaged out your net profit over the 77 calendar day length of the investment plan, we would expect to be earning somewhat less than 1% per day.  Maybe it will be 0.7%, 0.8%, or 0.9%.  It is impossible to nail this down further.

Now that we have some numbers to work with, it will be possible to discuss the investment plan further.  Of course, we will only be able to talk in general terms as these numbers are approximate.  However, we will still be able to come up with conclusions that should be of value to the online investor.  This is what we’ll do in Part 2 of this review.  Please continue to monitor our blog.  We expect to publish Part 2 in another day or two.

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