Offer Letter

Source: Notion | Last edited: 2023-02-07 | ID: 68b91f5d-23f...

Eon Labs Ltd. is, by and large, a prop firm. We feel the need to alert you that you won’t be finding working for/with EonLabs rewarding unless you’re an experienced algo-trading software engineer. For the skeptics who’ve seen or heard too many online scams, please read this justificatory letter dedicated to Msg to Wary Applicants and you can find out more about who we are and what we’ve accomplished in the Pitch Deck and how we’re often confused as something we’re not in the What We Are Not!

For experienced crypto futures contract algorithmic traders

If you have a crypto futures contract algorithmic trading strategy with simulated backtesting results that pass our Evaluation satisfactorily, you have the freedom to choose to be wage paid by EonLabs, or just profit share with EonLabs.

After the Take-Home Assessment (THA) & Evaluation, you can either choose Employment or Partnership.

If you opt for the Partnership option, you’ll have to take a good look at the Profit Sharing page.

Once you finish reviewing the Profit Sharing page, you’ll see that if you opt for Offer Letter instead of Profit Sharing, your compensation, at least during Probationary Period, is comparable to Profit Sharing with the following differences:

ibAUM is used for employees but its amount is larger than the MSA start-up capital for partners,
CI% is 0% in a sense (i.e. AUM not only illustrative but also fixed), and
ATSR Fee is 100% of the Excess Gain on the ibAUM

Probationary Period as Employee

If you opt for the employment option, when trying to determine your probationary starting Offer Letter, we will look at the estimated ATR that your strategy can generate for an ibAUM. This estimated ATR, along with the ibAUM, is used as a reference to propose your Offer Letter, which will not be affected by the actual performance of your strategy in the future. Probationary Period may last from three (3) to six (6) months.

Once your Probationary Period ends, your full-time permanent salary will be proposed based an ibAUM, too. But before we can successfully get your strategy traded by institutional clients, the ibAUM have a ceiling of 1 million BUSD.

There are two (2) kinds of probations that ATSR can choose from:

KHA Probationary Period is favored by Eon Labs Ltd. because the hiring process takes the least time.
- @Terry Li We already agreed on KHA in the case of employment, that is more convenient for both sides in case of employment so it’s better to elaborate on that. If we can do agree on that. Agree on fair compensation in the early period and fair bonus/commission on The Strategy already developed. I agree that new strategy that i develope is worth of different consideration. Give me a good offer and I am happy to work with you. Thanks 🙏
- @Sivan Langer We took some constructive twists and turns during our communication process. We started with regular employment. But EonLabs’ internal discussion somehow discouraged you on the regular employment and turned your attention to Profit Sharing. And then, after more thorough consideration of your desire for speedier start of income, we tried to create KHA Probationary Period. But it seemed to me that the nature of its complexity didn’t furthered our conversation on it. Eventually, my side of internal discussion gave a final green-light of the Regular Probationary Period, which is the most preferred method to satisfy the desire of both sides. The current Job Offer Letter is tailored for regular employment with aRegular Probationary Period to start because we have the most readily available employment contract workflow to start our relationship. The rest can be amended in the job offer letter (email) that we’re going to send you. I believe from your own pros & cons point of view, Regular Probationary Period can offer you more security and less stress and the only difference that set themselves apart is the timing and milestone of sharing of your IPs. Let me know if this is the primary concerns that make you prefer KHA Probationary Period now instead of the Regular Probationary Period. If not, I worry that it might have been some sort of misunderstanding or perhaps it’s my oversight when explaining. Please let me know your reasons of choose one over the others so that I can bring to the attention of my team and see if there’s anything we can offer you that can help you achieve your goals as quickly as possible. I was under the impression that your goals are prioritized as follows: 1) income ASAP; 2) higher income to 10k/month ASAP; 3) actual AUM increase ASAP. I believe the Regular Probationary Period that we’re suggesting is your best bet in achieve these goals. Therefore, it made me think twice if the IP sharing part was what’s worrying you. If yes, please let me know. But in my opinion, Regular Probationary Period is actually the most efficient accelerator for all three of the above, especially for 1) because all formality and documents are readily available. But for KHA Probationary Period, you’ll have to allow me additional time to come up with the documents. Please advice and let me know what you think.
Regular Probationary Period is also fine but we may need a bit more time to carefully assess your backtesting results before we can come up with an ibAUM and you are happy with.

🛗 Employee Onboarding for Regular Probationary Period

Once we decide who to hire, an offer letter is sent to the candidate. We will try to inform the candidate as much as we can in the offer letter so that the candidate can:

preview the standardized employment agreement so that he/she/they can review and comment on it ahead of time
fill the TD1, TD1BC & payroll information collection forms and share his/her/their IDs for payroll purposes
share his/her/their reference contacts so that we, as his/her/their new acquaintances, can understand how he/she/they are used to be perceived, potentially giving us more context of his/her/their unique characters, supplanting the behavioral questions that he/she/they have answered during the interview.

💌 Job Offer Letter

You will receive an official job offer letter in your personal email (sivanlanger@yahoo.com).

All the Notion-linked content will be copy-and-paste to the bottom GLOSSARY section of the job offer letter.

Dear Sivan Langer,

Congratulations! Eon Labs Ltd. (“EonLabs”) is excited to call you our new Algo-Trading Strategy Researcher (ATSR).

We’ll focus on wrapping up a few more formalities, including the successful completion of the following three (3) steps:

Your reference check,
Signing of service agreement (preview of the standardized EonLabs employment agreement), and
Payroll setup. We aim to get you settled into your new role by 13.2.2023__________ (usually the starting date of a month).

We are happy to offer you the part-time / full-time position of Algo-Trading Strategy Researcher (ATSR) with the following terms and conditions:

Your Regular Probationary Period period will last from three (3) to six (6) months starting from the date of your joining.
You will start the job by trading a small (less than 1000 BUSD) MSA to make sure that the trading signals generated are reflective and can generally match the backtesting ones.
You will create risk management features (monitor, alert and auto-liquidate all position when risk matrices, such as TMAD are close to or being violated) that will potentially be integrated with EonLabs’ backend system before engaging in larger MSA trading.
You understand that we have to come to an agreement of the exact values in the WBUF performance matrices to estimate your compensation plan.
Your strategy has an ITH (Investment Time Horizon) of _14 days (e.g. 28 days).
You agree that you use the best of your ability to maintain your strategy performance so that TMAEG (Trailing Minimum Acceptable Return) can be reached within every rolling window subsampled ITH cycle.
You agree that you use the best of your ability to maintain your strategy performance so that TMAD (Trailing Maximum Acceptable Drawdown) of 5%__ (e.g. 4.762%), won’t be violated at all time.
Not withstanding the designated goal of TMAD (Trailing Maximum Acceptable Drawdown) will not impact the employee salary during probation in any way but would impact the overall assessment of the strategy.
Your pay during the probation period will be $9500 (e.g. 3500 USD per month), which amount is estimated based on the TMAEG of 10%__ (e.g. 9%) every 28 days based on an ibAUM of 1,300,000______USD__________ (e.g. 38k CAD)
- @Sivan Langer there won’t be any sort of fund injection for salary-based employment. And the AUM won’t be more than 38k in view of the
- @Terry Li What’s the logic of such a low number?
- @Sivan Langer Because your primary objective is to start earning some income as soon as possible so it leaves no time for us to go through the regular Evaluation process. You indicated that you’re reluctant to generate further backtesting reports, especially for the recent months during supposedly relatively quite market environment. You asked me to take your word for it. Hence, I had to take a leap of faith in trusting you but the trust level can be as high as 3333 USD per month. It was derived and internally discussed based on the ATR of 40% and 100k USD you and I had talked about early on. (But you said during meeting that you’d rather had it as 3500 USD per month and I had further meeting internally thinking it’s fine, no need to worry about the 167 USD difference during Regular Probationary Period.) Hence, the low level of ibAUM during Regular Probationary Period is the amount based on your more up-to-date estimate based on monthly (28-day) estimated TMAEG. (But I can see that you’re shortening the ITH to 14 days, which is half of 28-day period.) But no matter how you are estimating ITH now, since we have only very limited backtesting result from you, so in reality, it’s likely that we won’t even be risking more than a few thousands in MSA until we have a full-grasp of your system after you’re on board. We hope that since we’ve taken the initiatives to skip all the formality of Evaluation, you may accept a relatively low Probationary Period wage understanding that it’s gesture of our good will to help you to help us explore and understand the nature of your system. Please understand that we’re not a hedge fund. Even hedge funds need at least two-year audited live trading results before they make any sort of bets or commitment to any strategies. On the other hand, we are a research-based prop firm who must know what we’re actually doing before admitting profit earned as valid or deemed successful; or else we’ll be like astrologists and soothsayers ascribing irrelevant things or things we don’t even understand as a way to bet our fortune on. Until we actually understand what you’re doing, at least historically simulated backtested results, we’ll simply be taking a leap of faith on you as an aspiring algo-trader who would like to get into the industry and who would also like to make some sort of an income as soon as possible for your personal reasons. But the amount, at least from starting Regular Probationary Period-wage-wise can only be limited as such a low level. But having said all that, I don’t see any reason for us not to re-negotiate the ibAUM as soon as possible during Regular Probationary Period if you give us a chance to understand the nature of the system by providing things such as more in-depth and longer-term historical backtesting results on different trading pairs and validate your backtesting results against live ones for their trading signals’ synchronicity.
After a successful probation period salary be no less than 10K USD but can be more according to the performance of the strategy.
- @Sivan Langer this is not possible as a guaranteed clause because the definition of “success” would likely be amicably re-negotiated as we progress into more in-depth understanding of your trading system. We can word it as such instead: The company understand that it is your aim to reach a monthly wage earning level of 10k USD and the company will try their best to accommodate it. The company will make it a primary focus on all level of communications during your Regular Probationary Period period to level up your earning to a reasonable level as defined by your system potentials earnings and the company’s prop fund situation. All the while, the company will provide evaluation and justifications early on so that you can decide for yourself if you would modify your expectation accordingly (either higher or lower) or seek some other form of working relationship to level up your income that does not violate the provisions in our standard employment agreement.
- @Sivan Langer Let me know if this revised statement is amicable to you.
Your monthly salary offer as a permanent employee will be proposed based on the TMAEG per ITH on an ibAUM, too; but it will not be determined until you have live traded your trading system on a managed sub-account (MSA) with at least 500_ (e.g. 3000 trades) and at least 20__ (e.g. 60 days) uninterrupted bug-free live execution mode. It is the company’s desire to sample more trades and longer uninterrupted bug-free live execution period before bringing a compensation proposal to you. But the company understand that you desire less required sample and shorter required period, so the company will try their best to provide evaluation and justifications when we’re nearing the quantified minimal requirements of what’s left to observe and/or things to sample beside the simulated backtesting results on more trading pairs, their trading signals’ synchronicity to real-money live ones, and the implementation level of risk management features, if there’s any. In doing so, you’ll have a clear understanding what to expect and perhaps in what timeframe.
You understand that, due to the limit of proprietary fund allocation, for the coming first year that you’re working for the company, the ibAUM to work out your monthly salary offer as a permanent employee have a ceiling of 111k BUSD_______ (e.g. 111k BUSD).
- @Sivan Langer Please review this again to see if you can understand. At very good market, your model will still be actually competing for the fund allocation with other models so the maximum fund allocation could be higher of course but we cannot guarantee a higher ibAUM for the first year until we have higher confidence in the nature of your trading system.
- @Terry Li ok i didn’t see first year
Your 12-month performance bonus in the first year of your service will be three (3) months in arrears and it will be determined by an actual trading performance results of your MSA based on an ibAUM of 30% of__1.3M (e.g. 50k BUSD).
- @Sivan Langer there won’t be any sort of fund injection for salary based employment. Fund injection is discussed based on profit sharing partnerships only which we can discuss based on the google sheets.
- @Terry Li Ok it’s imaginary anyway. No need for injection but since it’s imaginary the sum should be larger.
- @Sivan Langer The said amount is limited by our overall commitment to new ATSR. We have 20 mil AUM but more than half are from institutional clients. Our own prop funds are used to trade our own seasoned strategies which we have an in-depth understanding of their characteristics in the ever changing LIVE market. For rookie strategies or development ideas that we’re not familiar with, we cannot promise too much. I hope you can understand this. In addition, the bonus AUM is a way to encourage and reward ATSR performance even after year end. In other words, it could have been bundled into the overall ibAUM.
- @Sivan Langer And you’re right in some regards, because when there’s no injection inRegular Probationary Period and when ibAUM seem to be the only thing that’s preventing you to get a higher monthly income, you have to resort to some other avenues to increase your monthly income, such as by re-negotiating your ibAUM once you help us gain a more in-depth understanding of your system or strategies or create some other strategy with new dedicated ibAUM to help you increase your income potentials. But for the bonus ibAUM, at least at this stage when we’re still more or less in the dark of the nature of your system, it’s designed to be severalfold less than permeant-wage-pay ibAUM.
You understand that ibAUM is just a reference for us to negotiate and re-negotiate compensation plan if such occasion arises. It’s not to be understood as that the described amount is allocated to you to trade. The real-world AUM amount can be smaller or larger than the imaginary amount.
- @Terry Li Yes I do understand that. If my wage or bonus is calculated from that, it is important figure nonetheless.
- @Sivan Langer Thanks. ibAUM page is newly written to provide more insight to its existence.
There would be 10% (Ten percent) commission from EON in using S.L. strategy in case it works with Institutional Funds in the case the strategy is proven trustable and proficient during or after employment/partnership/negotiation with SL.
Eon and its management understands that no disclosure of IP is obligated by the employee until there is a structured commission agreement on his strategy
- @Sivan Langer for Regular Probationary Period, IP is disclosed on the fist day. If there is ethical concerns of the firm and the team. Please voice your opinion on how to resolve now. I can also find ways to address those concerns especially if we can pinpoint them. @Terry Respectfully, I will opt to not to disclose anything until we have constructed a mechanism for commission. The KHA model is probably better for everyone
Salary will be paid Weekly or B-Weekly
- @Sivan Langer Monthly only for salary based work. Please refer to the employment agreement template that we use for everyone.
- @Sivan Langer Please let me know if this is something you’re adamant about. It will require four times if not twice the administrative work hour. We hope we can avoid this frequency of settlement unless it’s crazy amount of money owning to some of the 3rd party payees who, for some legitimate reasons, do not trust us enough to settle monthly.
If Employment Time Logged to Jira should be agreed in advance
- @Sivan Langer what do you mean by this?
- @Sivan Langer There’s no need because you’re not Canadian residence. Your time logging, no matter how long, won’t help us get more tax credits. Your logging will simply help us understand your time allocation, which is going to be helpful to us in knowing your capacity. After all, this position is result-oriented. Time logged is simply an after-the-fact matrix for us to understand everyone’s capacity in relation to their work done.
- That i will have to be logged no more than X hours per week and this number should be agreed
You can expect to receive payment monthly starting in the first week of Feb________, 2023.
You might be placed in any project as and when required by the management
You’re required to log your work on Jira with the option to use TimeDoctor as a companion tool
- Jira logging is required for EonLabs to claim government research grants, such as SR&ED
After the probation period, you will be given a proper letter of appointment along with extended health and dental insurance benefits. Kindly REPLY to this email with the electronic copies of the following documents to accept this job offer:
Two (2) pieces of photo identifications (photo or pdf)
Two (2) reference contacts which I may email them to ask about their opinions of you
Filled these three (3) forms (if applicable):
- Payroll information sheet
- TD1BC British Columbia Personal Tax Credits Return
- TD1 Personal Tax Credits Return EonLabs looks forward to bringing you on board! If you have questions, reach out at any time and we’ll be more than happy to help you.

Regards,

**Terry Li **(he/him/his)

Director of Operations, Eon Labs Ltd.

GLOSSARY

(All the linked content will be copied and pasted here.)

After email correspondences and assuming everything’s agreeable, we proceed to generate the employment agreement that filled with the probationary employee’s personal information.

📍 Recruitment Board 🔑 ** Guest Researcher Area (accessible by invitation only) **🔒

- [LOB Data on S3 🔏](/engineering/integrations/lob-data-on-s3/)
- [Algo-Trading Books 🔒](/research/books/algo-trading-books/)

🔆 External Links

- [**Link-in-Bio for EonLabs**](https://bit.ly/m/eonlabs)
- [**Indeed Company Page**](https://ca.indeed.com/cmp/Eonlabs)
- [**EonLabs.com Official Site**](https://www.eonlabs.com/)

🍁 EonLabs acknowledges that the land on which we live and work is the unceded traditional territories of the xʷməθkʷəy̓əm (Musqueam Indian Band), Sḵwx̱wú7mesh (Squamish Nation), and səlilwətaɬ (Tsleil-Waututh Nation) and we are grateful for the opportunity to do so.