Multi-Variable Asset Valuation Server Index Fidelity

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Solution Overview

Problem

Standard two-variable price and quantity (P*Q) models fail to accurately track the value of assets like index multiplier funds over time, leading to a loss of fidelity with the underlying index, especially in aggressive funds, and are insufficient for valuing assets that change due to transformation processes or ripening products.

Innovation Solution

A multi-variable valuation method that uses a valuation server to determine the value of a multiplier fund based on an underlying index and an adjustment value, which is calculated using the previous and current index values and a multiplier value, allowing for real-time signal transmission and output.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Measurement precision

If a standard two-variable P*Q value model is used for a multiplier fund, then the model is simple to implement, but it fails to accurately track the value of the asset over time and maintains fidelity with the underlying index

Engineering Contradiction:

Improveaccuracy of asset value trackingVSAvoidcomplexity of valuation model

Core Design Contradiction:

Measurement precisionVSDevice complexity

Solution Approach 1:

The patent transitions from a two-variable P*Q model to a three-variable model by adding the adjustment value dimension. This additional dimension enables the system to accurately track asset values over time by accounting for the cumulative effect of daily multiplier fund changes, thereby resolving the contradiction between measurement precision and model complexity.

Inventive Principle:

Principle #17Another dimension (Dimensionality change)

Solution Approach 2:

The patent introduces a new parameter (adjustment value) that changes over time to capture the divergence between multiplier fund and underlying index values. By dynamically adjusting this parameter based on daily changes, the system maintains accurate valuation without requiring complete model restructuring, thus balancing precision and complexity.

Inventive Principle:

Principle #35Parameter changes

2Reliability

If a multi-variable valuation method is used to maintain fidelity with the underlying index, then the accuracy of tracking is improved, but the complexity of the valuation system increases

Engineering Contradiction:

Improvefidelity with underlying indexVSAvoidcomplexity of valuation system

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent segments the valuation process into distinct components: the underlying index value, the multiplier fund value, and the adjustment value. Each component is calculated and updated independently, allowing the system to maintain high reliability through multiple variables while managing complexity through modular calculation steps.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The adjustment value acts as a feedback mechanism that continuously corrects the valuation to maintain fidelity with the underlying index. By incorporating daily changes and cumulative effects into the adjustment value, the system achieves high reliability while the feedback nature of the calculation provides a systematic approach that manages complexity.

Inventive Principle:

Principle #23Feedback

3Productivity

If the standard P*Q model is used for periodic valuation, then the system is easier to operate, but it provides only periodic estimates rather than dynamic inventory valuation

Engineering Contradiction:

Improvespeed of valuation updateVSAvoidease of valuation system operation

Core Design Contradiction:

ProductivityVSEase of operation

Solution Approach 1:

The patent calculates and maintains the adjustment value continuously as the underlying index and multiplier fund values change. This preliminary action of continuously updating the adjustment value enables rapid valuation responses without requiring complex real-time recalculations, thus improving productivity while maintaining ease of operation through pre-established calculation relationships.

Inventive Principle:

Principle #10Preliminary action

Data Source

PatentUS8296214B1Methods and apparatus related to billing and accounting for assets that require more than two factors to establish asset value

Publication Date: 2012.10.23 STOLLMAN JEFF

AI summary

In one embodiment, a first device is configured to determine a value of an asset at a second time. The value of the asset can be based at least in part on a quantity of the asset and a value of a multiplier fund. The value of the multiplier fund can be based at least in part on an adjustment value. The adjustment value can be based at least in part on a value of an index at a first time, the value of the index at the second time and a multiplier value associated with the multiplier fund. The first device can be configured to send, to a second device and in substantially real-time, a signal including at least one of: the value of the asset at the second time, the value of the multiplier fund and the adjustment value.