AIFI Index Design

Traditional crypto indices are static, relying on fixed baskets and time-based rebalancing. Times AI indices are adaptive, designed to respond to real-time market intelligence rather than arbitrary schedules.

How the Times AI Index Works

The Index AI Agent continuously curates and manages index composition using a combination of market capitalisation, performance metrics, volatility, sentiment, and growth potential. Tokens are selected to represent a diversified yet relevant snapshot of the market or a specific sector.

Index Calculation & Weighting

Each token’s weight within an index is determined by its relative market capitalisation, ensuring balanced exposure that reflects actual market structure rather than equal weighting.

The index price is calculated using a market-cap-weighted approach:

Index Price = Σ (Market Capᵢ × Priceᵢ) ÷ Σ Market Capᵢ

Where:

• Market Capᵢ represents the market capitalisation of each selected token

• Priceᵢ represents the current price of each token

This methodology produces a single index value that accurately reflects the combined performance of all underlying assets.

Dynamic Supply Management

Users can enter or exit the index at any time through a dynamic mint-and-burn mechanism:

• Minting: When a user buys the index token, underlying assets are acquired at market prices and new index tokens are minted based on the current index price. • Burning: When a user sells the index token, the corresponding amount of underlying assets is released and the index tokens are burned.

This mechanism ensures that index supply adjusts organically with demand while maintaining price integrity.

Adaptive Exposure & Risk Logic

Unlike static indices, Times AI indices incorporate:

• Dynamic weighting instead of fixed allocations • Exposure adjustments based on volatility and sentiment • Risk-on and risk-off logic during changing market regimes • Rebalancing triggered by intelligence signals rather than fixed time intervals

The objective is not aggressive short-term outperformance, but disciplined, intelligence-aligned exposure over time.

Transparency & Continuous Insight

Index composition, pricing, and performance are tracked and published through automated updates, allowing users to clearly understand how exposure evolves. AI Agents provide contextual insights explaining allocation changes, reinforcing transparency and informed participation.