Settle Liabilities
Last updated
Last updated
To extract liquidity from the fund and cover pending fees or pay redeeming investors, Fume enables you to automate transactions and reporting through your on-chain fund. Follow these steps to settle liabilities such as management fees, performance fees, or redemption payments.
To begin settling the fund’s liabilities:
Go to the "Flows > Outflows" tab.
Under "Pending Liabilities", you will see all liabilities that need to be settled, such as fees and redemption requests.
In the top-right corner, click "Settle Liabilities".
From the list, select the specific liabilities you intend to settle. The total liquidity required to settle these liabilities will be displayed.
Note: If there are new investors who are currently pending subscriptions and awaiting the next NAV calculation, their liquidity can be used to offset any fund liabilities and payments owed to redeeming investors.
If additional liquidity is needed, send the required amount to the address provided below.
⚠️ Important: Ensure that the liquidity is sent from any wallet belonging to the fund, not from the manager’s personal wallet.
Security Note: The Fume protocol is designed to always remain segregated from fund custody. For security reasons, the manager interacting through the protocol can move liquidity to the fund, but cannot extract from the fund.
Once the liquidity has been transferred to the on-chain fund:
Click on "Settle" to initiate the transaction.
This transaction will:
Trigger the payment of the selected fees (e.g., management and performance fees) to the manager.
Pay redeeming investors the amounts due, deducting any applicable exit fees.
After completing the transaction, the selected liabilities will be settled, and the fund’s balances will be updated accordingly.
