3.3. ALPHA Fund
Last updated
Last updated
Is a fund product that uses cryptocurrency(a digital asset) as opposed to a traditional central bank based currency. Cryptocurrency is invested into a hedge fund and acquires ALPHA using the investment product as the underlying asset. ALPHA FUND is the brand name of the fund specifically selected for the LiQuiD Prime platform. ALPHA is composed of several sub-funds. When investing in each sub-fund, an asset consignment contract is signed with the investment target fund(the underlying asset). Digital assets are selected on the basis of USD$1 = 1ALPHA and are deposited in the fund. An ALPHA NFT (Non-Fungible Token) is then allocated to the fund subscriber.
The owner of an ALPHA NFT may transfer the NFT to a third party prior to the maturity of the fund, for cashing out at a premium in consideration of the current yield. This enables the conversion of ALPHA's underlying assets into cash that cannot be provided by investment contracts
Investor #1 sells 10,000 ALPHA to #2 for 15,000 USDC, Investor #2 has acquired 10,000 ALPHA for $15,000 and is settled at 18,000 USDC at maturity.
It is the most transparent and objective investment in digital assets, and even ordinary individuals who are not ACCREDITED INVESTORs can invest with a small amount, and companies can use it conveniently.
ALPHA FUND
Hedge Funds
Through DAO, various experts and investors make decisions together.
The fund manager decides what to invest in.
펀80% of the fund management fee is distributed to the Master Node(includes the fund manager, and the entire community). 20% is reserved for future development of this platform.
The fund management fee is the fund manager's entire income.
Small investments are made possible, allowing individuals to participate.
Due to financial regulatory guidelines investment is only available to accredited investors (HNW/UHNW) and institutional investors.
Investment performance of all funds is simple to monitor through a mobile APP.
Funds are usually located in a variety of countries and performance metrics available through hedge fund manager private platform or via institutional platforms such as Bloomberg, Reuters, Morningstar, etc.
By selling ALPHA, investors can immediately convert it into Fiat.
Settlement is received on an annual basis or at maturity.
Deposits and withdrawals are freely available. If there is a lock-up period, the fund investment portfolio can be sold as an NFT.
All funds have a lock-up period and usually short and specific liquidation windows making withdrawals often challenging.
$Investments as small as USD$100 may be possible.
Minimum investment ticket sizes range from USD 250k > USD1 million.
Fund managers only objectively participate in investment decision-making.
Fund managers themselves also invest large amounts in the fund structures.
The investment methodology is similar to that of a hedge fund, but focused on sustained alpha vs the underlying benchmark.
HFs operate in a wide variety of instruments with varying; underlying assets, strategies, volatility, risk management parameters and geographical locations and industry spaces.
DAO project participants exercise active investment decision-making related to profit sharing by staking LQD.
Investors merely subscribe to a fund structure and have no decision making capacity related to the fund management or products.
Investors have the option to invest in the fund products, the project itself, or LiQuiD Prime partner projects.
Investors are limited to investing in specific fund structures and fully agree to abide by all terms of the fund agreement.
