# Overview

Mito AI Hedge Fund (M.A.H Fund) is an **AI-powered hedge fund** utilizing **multi-factor quant strategies** and **autonomous AI agents** to optimize trading decisions. By combining machine learning, market insights, and real-time data analysis, M.A.H Fund maximizes profitability while managing risks dynamically.

#### **💰 $MITO Token & Staking Fund Utilization**

M.A.H Fund integrates **$MITO token staking** to **amplify capital efficiency** through a **marginal algorithm** with manager (Human Approval) that optimizes fund allocation.

**🔢 Marginal Algorithm & Fund Allocation Formula**

M.A.H Fund follows a structured allocation model:

**Total Trading Capital ($T\_{fund}$) Calculation:**\
![](https://2704817088-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fur1kLAOnsiXhhhXVfiHc%2Fuploads%2F7zGif8QEXdj1HBE3dgiR%2Fimage.png?alt=media\&token=23a67bc8-833a-4b03-8ee7-d92c36275bfd)

where:

* **$S\_{MITO}$** = Total $MITO tokens staked
* **$L$** = Leverage multiplier (determined by AI risk models)
* **$E\_{fund}$** = External liquidity pool contributions

**Dynamic Risk-Adjusted Allocation per Strategy:**\
\
![](https://2704817088-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fur1kLAOnsiXhhhXVfiHc%2Fuploads%2FySzD4shXWvN10zWpfTcc%2Fimage.png?alt=media\&token=88d2d473-22a0-4b70-9f02-ad847aaedb7b)

Each trading factor receives a dynamically weighted capital allocation **based on risk-adjusted returns**:

where:

* **$A\_{factor}$** = Allocation for a specific factor
* **$R\_{factor}$** = Expected return of the factor (calculated via AI models)
* **$\sum R\_{all}$** = Sum of expected returns across all factors

**Profit Distribution & Yield for Stakers:**

Profits generated are distributed between **fund growth, reinvestment, and staker rewards**:\
![](https://2704817088-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fur1kLAOnsiXhhhXVfiHc%2Fuploads%2Fm7ci4teUf6S5xauqgoon%2Fimage.png?alt=media\&token=5ea92593-b40a-4d26-87fe-7dc5b06f1d91)

where:

* **$P\_{staker}$** = Profit share for stakers
* **$P\_{total}$** = Total trading profit after expenses
