Profit Distribution

Profit Distribution Explained

To ensure transparency and clarity, here’s how Meme Fund will distribute profits, taking into account the soft cap ($500k) and hard cap ($1M) fundraising goals, as well as expenses for setting up the necessary infrastructure and systems.

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Fundraising Goals

• Soft Cap: $500,000

• Hard Cap: $1,000,000

Tokenomics Breakdown - Proceeds from the fundraising are allocated as follows:

• Trading Capital: 70%

• Setup and Operational Costs: 20%

• Reserve for Risk Management: 10%

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Allocation of Funds

1. Trading Capital (70%)

The bulk of the funds is dedicated to trading strategies and investments:

• Private Allocations: Early-stage opportunities in promising meme coin projects.

• Market Making: Providing liquidity to generate volume.

• Algorithmic Trading: Utilizing bots for arbitrage, sniping, and high-frequency trading.

1. Setup and Operational Costs (20%)

This covers the essential infrastructure to manage the fund effectively:

• Trading Platforms (e.g., Fireblocks): Securely managing and deploying funds.

• Sniper and Trading Bots: For executing high-frequency trades and capturing launch opportunities.

• Shilling and Marketing Systems: Including bot-driven engagement to amplify market influence.

• AI Agent Development: Advanced tools for sentiment analysis and trading optimization.

1. Reserve for Risk Management (10%)

A safety buffer to ensure stability:

• Used for unforeseen market downturns or scaling opportunities.

• Maintained as liquid assets or stablecoins for quick deployment.

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Profit Distribution Process

How Profits Are Shared

1. Net Profits:

After covering ongoing operational costs (e.g., bot maintenance, platform fees), the remaining profits are distributed.

1. Frequency:

Profits are distributed quarterly after trading begins, calculated based on the number of $MIF tokens each investor holds.

1. Calculation Example:

• Total Net Profit: $500,000 (after expenses).

• Total Tokens Issued: 615,000 (based on soft cap).

• Profit Per Token:

Profit Per Token

1. Investor Distribution:

• If you hold 1,200 tokens (Tier 2):

1,200 x 0.81 = 972 in profit.

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Investment Tiers with Bonus Tokens

Tier	$ Investment Amount	Bonus Tokens	Total Tokens Per Investor
Tier 1	$1,000	0	1,000
Tier 2	$5,000	10%	5,500
Tier 3	$10,000	20%	12,000

Fundraising Breakdown

We assume the total fundraising amount is divided proportionally:

• Tier 1 (40%): $200,000 (at soft cap) / $400,000 (at hard cap).

• Tier 2 (35%): $175,000 (at soft cap) / $350,000 (at hard cap).

• Tier 3 (25%): $125,000 (at soft cap) / $250,000 (at hard cap).

Number of Investors and $MIF Tokens Issued

For Soft Cap ($500,000)

Tier	Total Fundraising	Investment Per Investor	Number Of Investors	Base Tokens Issues	Bonus Tokens Issued	Total Token Issued
Tier 1	$200,000	$1,000	200	200,000	0	200,000
Tier 2	$175,000	$5,000	35	175,000	17,500	192,500
Tier 3	$125,000	$10,000	12.5 (~13)	125,000	25,000	150,000
Total	$500,000		248 Investors	500,000	42,500	542,500

For Hard Cap ($1,000,000)

Tier	Total Fundraising	Investment Per Investor	Number Of Investors	Base Tokens Issues	Bonus Tokens Issued	Total Token Issued
Tier 1	$400,000	$1,000	400	400,000	0	200,000
Tier 2	$350,000	$5,000	70	350,000	35,000	192,500
Tier 3	$250,000	$10,000	25	250,000	50,000	150,000
Total	$1,000,000		495 Investors	500,000	85,000	1,085,000

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Profit Distribution Example:

Soft Cap ($500,000 and Total $MIF Issued 542,500)

Scenario 1: $500,000 Profit (2x)

Tier	$ Investment Amount	Total $MIF Held	Profit Per $MIF	Total Profit
Tier 1	$1,000	1000	$0,92	$920
Tier 2	$5,000	5500	$0,92	$5,060
Tier 3	$10,000	12000	$0,92	$11,040

Calculation Profit Per Token

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Scenario 2: $3,000,000 Profit (7x)

Tier	Investment Amount	Total Tokens Held	Profit Per Token	Total profit
Tier 1	$1,000	1000	$5,53	$5,530
Tier 2	$5,000	5500	$5,53	$30,415
Tier 3	$10,000	12000	$5,53	$66,360

Calculation Profit Per Token

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Scenario 3: $25,000,000 Profit (51x)

Tier	Investment Amount	Total Tokens Held	Profit Per Token	Total profit
Tier 1	$1,000	1000	$46,07	$46,070
Tier 2	$5,000	5500	$46,07	$253,385
Tier 3	$10,000	12000	$46,07	$552,840

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Key Takeaways:

• Even a small profit of $500,000 doubles the initial investment (2x).

• A moderate success like $3M yields significant growth (7x).

• High success with $25M demonstrates exponential returns (51x), emphasizing the potential upside in the meme coin market.