🏦Off-chain Subscriptions
An off-chain subscription refers to an investment in the fund where the liquidity doesn't pass through the smart contract. Instead, investors may choose to deposit funds via traditional methods, such as a bank transfer, or other non-blockchain assets (e.g., company shares, or even a Bitcoin transaction). While the investor doesn’t need to use the platform to deposit, they can use it to receive bank details and monitor their investment’s value over time.
1. Optional - Add Bank Coordinates (as a Manager)
As a Manager, you can add your bank details to the platform, so investors know where to send their deposits. Here’s how:
Navigate to Settings.
Edit the "Bank Deposit Coordinates" field to add your bank instructions.
Note: Alternatively, you can choose to share the bank deposit instructions directly with the investor outside of the platform.
2. Invite Investor (as a Manager)
To register the off-chain investment, the fund manager must invite the investor to the platform:
Navigate to the "Investors > Subscriptions" tab on the left-side menu.
Click "Invite Investor" on the top right of the screen.
Select "Off-Chain Investment".
Fill in the required information:
Name: This will appear in the share registrar.
Email: The email where the investor will receive the invitation.
Note: Ensure that KYC and due diligence regarding the origin of funds have been performed on your side. This action whitelists the investor for participation in the fund. Be mindful of KYC/AML regulations applicable to your investment vehicle, and consider using a cost-effective solution like AMLBot.
3. Deposit Liquidity (as the Investor)
Once invited by the manager, the investor will receive an email invitation with a link to access the platform:
Sign in: Click the sign-in link received via email to access the platform.
View Investment Details: Navigate to the "Investments" tab on the left-side menu.
Deposit Instructions: Under the "Details" section of the investment, the investor will see the deposit instructions previously added by the manager.
Proceed with Deposit: The investor follows the instructions to complete the deposit via their chosen method (e.g., bank transfer).
4. Confirm Deposit (as a Manager)
Since the deposit happens off-chain, it is necessary for the manager to confirm the deposit on the platform to notify the on-chain fund:
Navigate to the "Investors > Subscriptions" tab.
Click "Details" next to the relevant investor.
Confirm the deposit: Enter the date and exact amount received by the fund.
Once the deposit is confirmed, you will see it registered as a pending subscription under the "Inflows" section. The investor will receive their tokenized units during the next NAV calculation event.
Considerations: Off-Chain vs. On-Chain Subscriptions
While off-chain subscriptions offer flexibility for investors using traditional banking or non-blockchain assets, they are generally less efficient and require more manual work compared to automated on-chain subscriptions. For fully automated and seamless transactions, we recommend encouraging on-chain subscriptions whenever possible.
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