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Discussion.

Let’s begin our discussion by recalling what we found out about the six Alysdax investment plans in Part 1 of this review. 

I note that the daily interest rate is also the DNI for a plan because your deposit is returned to you at the end of a plan. Here’s the chart that we included at the end of Part 1:

  • Plan                 Daily interest rate       Total net interest        Break even
  • 30 days            0.79%                          23.7%                          30
  • 60 days            0.99%                          59.4%                          60
  • 90 days            1.14%                          102.6%                                   88
  • 120 days          1.19%                          142.8%                                   84
  • 150 days          1.24%                          186.0%                                   81
  • 180 days          1.29%                          232.2%                                   78

First, let’s talk about the TYPE of investment plan that Alysdax offers.  In the HYIP industry, there are three common types of investment plans:

1.  Those that withhold both your deposit and earnings until the end of the plan.  These are the riskiest plans to be involved with.  However, they are often the most lucrative.

2.  Those that withhold your deposit until the end of the plan but DO pay you a daily interest.  This is the type of investment plan that Alysdax uses.

3.  Those that pay a daily interest and also return your deposit to you as part of it.  These are the least risky tyle of plan since you recover your deposit very quickly and can break even well before the end of the plan.

So, you might say that Alysdax has chosen a middle road in-so-far-as the TYPE of investment plan they offer.  Yes, you do receive a daily return.  However, your deposit is at risk until the plan ends. 

Aside from the fact that the Alysdax plans are risky because they hold your interest until a plan ends, let’s think about other factors that contribute to risk.  Chief amoung them is always DNI, the average daily net interest that a program will pay you.  In the article in HYIP Insights #12, we suggested rating the survivability of a program according to the value of DNI in the investment plans that it offers in the following way…

DNI < 1%:  High chance of long-term survivability

1% < DNI < 2%:  Unknown effect on long-term survivability

DNI > 2%:  Low chance of long-term survivability

Well, the DNIs for the Alysdax investment plans are all less than 2% and a few of them are less than 1%.  The point is that, from a broad perspective, the Alysdax investment plans appear to be a conservatively designed package with DNIs that are conducive to long-term survival of the program. 

Finally, what about profitability?  This, of course, is the factor that is uppermost on the mind of most HYIP investors.  The lowest interest plan, the 30-day plan, has a DNI of 0.79% which, when you multiply it by seven, gives you a weekly profit of 5.53%.  The highest interest plan, the 180-day plan, has a DNI of 1.29% which gives you a weekly profit of 9.03%.  In the article in HYIP Insights #23, entitled “How Much Profit Makes Sense?”, we went through a lot of trouble to make a suggestion as to what might be a sensible level of profit for an HYIP to offer in its investment plans.  Our decision was that the investor should aim at programs that offer plans with weekly profits between 5% and 10%.  Well, the folks at Alysdax must have read our article, as the weekly profit levels that their investment plans provide are all within these limits.  So, we would say that the profitability of the Alysdax investment plans are “exactly” right.  Not too high and not too low.

Earnings Example.

It is very easy to work out an earnings example for the Alysdax investment plans.  We’ll work two of them, one for the 30-day plan (because it doesn’t break even until the plan ends) and the other for the 90-day plan because it does break even before the plan ends.  In both cases we’ll assume an investment of $200.

For the 30-day plan, you will receive a daily return of 0.79% of your investment, or $1.58 (.0079 x 200).  When the plan ends after 30 days, the total you will have received will be $47.40 (30 x 1.58).  At this time, your investment will be returned to you and you can say that the $47.40 is your net profit.

For the 90-day plan, you will receive a daily return of 1.14% of your investment, or $2.28 (.0114 x 200).  After 88 days you will have received a total of $200.64 (88 x 2.28) and you will have broken even.  When the plan ends in 90 days, you will have received a total of $205.20 (90 x 200).  At this time your investment will be returned to you and you can say that the $205.20 is your net profit.

For purposes of comparison, if you multiply the $47.40 of the 30-day plan by three, you get $142.20.  So, in the same time period, you will earn $63 more by means of the 120-day plan.  This is a significant difference.  The hang-up, of course, is that you have to put your investment at risk for three months.  This is a fairly long time in the HYIP business…

Conclusions.

Alysdax offers six well-thought-out investment plans that pay very sensible interest returns.  The only problem with these plans is probably that they hold the investors deposit until the end of a plan thereby putting it at risk in the event that the program closes prematurely.   

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