Free-Float & Liquidity Filters
Free-Float Adjustments
To better reflect market reality and avoid index distortion from illiquid holdings, OLTA applies a Free Float Factor (FFF) to the total market capitalization of each eligible asset.
Adjusted Market Cap = Total Market Cap × Free Float Factor
≥ 90%
1.00
70% – 89%
0.85
50% – 69%
0.60
30% – 49%
0.35
< 30%
Excluded
Assets with a free float below 30% are excluded from OLTA indices unless explicitly approved through governance.
Additionally, certain categories of tokens, such as early-stage projects, real-world asset protocols (RWA), and specialized thematic assets (e.g., AI, infrastructure, or cross-chain wrappers), are more prone to failing liquidity thresholds. These assets require heightened scrutiny and may be assessed individually based on the mandate and risk framework of each index.
Liquidity Filters
Liquidity screening ensures that index constituents are efficiently tradable and resistant to execution risk.
Minimum Eligibility Requirements:
Average Daily Volume (30-day trailing): ≥ $4,000,000 USD
Slippage Tolerance: ≤ 1% for a $10,000 trade on a primary trading venue
Exchange Coverage: Listed on at least 2 reputable CEXs
Assets failing one or more of these criteria are disqualified from index inclusion to preserve execution quality and price integrity.
Reported trading volumes will be cross-verified across reputable sources and venues to exclude tokens exhibiting signs of wash trading or artificial inflation, ensuring only assets with demonstrably organic liquidity are eligible for inclusion.
A slippage tolerance of ≤ 1% on a $10,000 trade is calibrated to align with OLTA’s TWAP/VWAP-based pricing model, balancing liquidity depth with asset inclusivity. This threshold helps ensure that price formation remains reliable even when mid-cap or emerging tokens are included in the index. (See Pricing & NAV for details)
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