⛓️On-chain Subscriptions
This section guides fund managers and investors through the process of subscribing to an on-chain fund using Fume. The subscription process involves three key steps: inviting investors, depositing liquidity, and liberating liquidity.
1. Invite Investor (as a Manager)
To receive capital from investors, the fund manager must first invite the investor to the platform. Here’s how:
Navigate to the "Investors > Subscriptions" tab on the left-side menu.
Click "Invite Investor" on the top-right corner of the screen.
Select "On-Chain Investment" as the investment type.
Fill in the required information:
Name: The investor’s name will appear in the fund’s share registrar.
Email: This is the email address where the investor will receive the invitation to join the platform.
Wallet Address: Input the wallet address from which the investor will deposit liquidity.
Note: It is important that the wallet address and the KYC and due diligence on the origin of funds have been verified on your side. This process whitelists the investor and allows them to deposit capital. Ensure you comply with the relevant AML/CFT regulations applicable to your investment vehicle. We recommend a cost-effective solution like AMLBot for this purpose.
Once the investor is whitelisted, they will be able to proceed with the deposit.
2. Deposit Liquidity (as the Investor)
Once the investors has been whitelisted by the fund manager, they will receive an email invitation with a link to join the platform and complete the investment process.
Sign-in: Click the sign-in link received via email to access the platform.
Navigate to Investments: After signing in, go to the "Investments" tab on the left-side menu.
View Investment Details: Click on "Details" to view the pending investment.
Deposit Liquidity: The deposit process involves two steps:
Approve: The first transaction approves the protocol to manage the intended amount of liquidity. This allows the smart contract to interact with the investor’s wallet.
Deposit: The second transaction is the actual deposit, which transfers the liquidity from the investor’s wallet to the on-chain fund.
Note: Once the deposit is completed, the investor's job is done. They will receive tokenized fund units at the next NAV calculation event, which reflects their position in the fund.
3. Liberate Liquidity (as the Manager)
At this point, the deposited liquidity is held in the smart contract of the on-chain transfer agent. It will be moved to the connected fund wallet either at the next NAV Calculation event or manually by the manager. Here’s how:
NAV Calculation Event: The most straightforward way is to wait for the next scheduled NAV calculation. Once completed, the liquidity will automatically be transferred to the fund wallet, and the investor will receive the tokenized units.
Manual Liberation: Alternatively, as the fund manager, you can go to the "Inflows" page and select the "Liberate Liquidity" option to manually move the liquidity to the fund wallet.
Important: If you liberate liquidity manually without completing an NAV calculation, the investor will not receive their tokenized units until the next NAV event. This method is useful if you need immediate access to the investor’s liquidity but are still reconciling your positions for the NAV calculation.
Once the liquidity is transferred to the fund wallet, it is ready to be deployed according to your investment strategy.
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