Lock-Up and Redemption
Lock-Up Period
To ensure the stability and effective operation of the fund, all investments are subject to an initial lock-up period.
Duration:
The lock-up period is 4 months starting from the day the fund reaches its soft cap of $500,000.
During this time, no redemptions are allowed, and the fund focuses on deploying capital and executing strategies.
Purpose:
To provide the fund with the liquidity needed for trading, market making, and other strategies without interruptions.
To allow investments to mature and generate meaningful returns.
Redemption Process
After the lock-up period ends, investors can redeem their $MIF tokens in exchange for their proportional share of the fund’s net asset value (NAV).
Frequency:
Redemptions are processed quarterly following the initial lock-up period.
Redemption Value:
The redemption value is calculated based on the current NAV per token at the time of redemption.
Example: If the fund’s NAV is $5,000,000 and there are 542,500 tokens, the NAV per token is:
Redemption Example:
An investor holding 1,000 tokens would redeem for:
1,000 x 9.21 = 9,210 USD
Redemption Rules
Partial Redemption:
Investors can choose to redeem a portion of their tokens while keeping the rest in the fund.
Redemption Fees (Optional):
A small fee (e.g., 1-2%) may be applied to cover administrative and operational costs.
Notification Period:
Investors must provide advance notice (e.g., 7-14 days) before the redemption window.
Why Lock-Up and Redemption Are Important
Stability for the Fund:
The lock-up period ensures the fund has sufficient time and liquidity to execute strategies effectively without interruptions.
Fair Redemption Process:
Quarterly redemptions based on NAV provide transparency and allow investors to exit or adjust their positions while maintaining fairness for all participants.
Long-Term Commitment:
Encourages investors to think beyond short-term gains and aligns their interests with the fund’s long-term success.
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