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  • Whitepaper
    • 👋Fume Intro
      • 🤕Problem
      • 💊Solution
    • 💻How Does It Work?
      • 📇Registrar & Transfer Agent
      • 🔒Connected Custody
      • 📈On-Chain Admin
    • 🍕Protocol Fee
    • 📹Demo
    • ⚖️Legal Considerations
    • 💎Use Cases
      • Digital Asset Fund
      • 🔀On-chain Feeder
      • 💲Money Market Fund
    • 🦾Technical
      • 🛡️Security & Risk Mitigation
      • 🪙Tokenized Units
    • ❓FAQ
  • User Guides
    • 🏗️Fund Setup
    • 📥Inflows
      • ⛓️On-chain Subscriptions
      • 🏦Off-chain Subscriptions
    • 📤Outflows
      • 💸Redemptions
      • 💰Settle Liabilities
    • 🧮NAV Calculation
    • 🗝️Connect Your Wallet
    • 💵Prepare Liquidity
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On this page
  • Inefficiency
  • Opacity by default
  1. Whitepaper
  2. Fume Intro

Problem

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Last updated 7 months ago

We are solving the problem of inefficiency and opacity in the fund management industry.

Inefficiency

  • Too Many Intermediaries. To deploy an investor's capital, the subscribed funds go through multiple intermediaries such as the subscriber's bank, clearing settlement companies, the Fund's bank, and the broker/exchange bank, to name a few.

  • Expensive Administration. Setting up and running an investment fund is extremely costly and time-consuming for Fund Managers. The reporting between the Administrator and the Managers requires tiresome and error-prone manual work.

Opacity by default

  • Trust. The investors have to trust the manager to respect the offering memorandum terms, to trust the administrators that all the NAV and fees are calculated correctly, and that the Custodian of the underlying assets remains solvent.

  • Expensive Audits. Every financial year, the Fund must pay auditors to provide transparency and ensure the execution of the investment strategy according to its memorandum.

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Traditional Investment Funds