📈On-Chain Admin

Fume’s on-chain administration system allows fund managers to customize the frequency of their Net Asset Value (NAV) calculations. This can be set according to the fund’s specific needs, whether it be on a weekly or monthly basis, at each investor subscription or redemption, or in alignment with the schedule defined in the fund's offering memorandum.

Automated NAV Calculation

To perform the NAV calculation, the fund manager only needs to provide the total value of the underlying assets of the fund. Once this information is input, Fume’s protocol automatically handles the rest. The protocol calculates the NAV, equalizes shares among existing investors, and computes the necessary management and performance fees. This includes applying a high-water mark system to each individual investment, ensuring accurate and fair performance fee calculations.

Handling of Fees and Liabilities

After the fees are computed, they are marked as pending liabilities within the system. The fund manager is then responsible for preparing the liquidity needed to settle all or part of these liabilities in a single transaction. This streamlined process significantly reduces the administrative burden on fund managers, as there is no need for manual calculations or external reporting.

Transparency and Traceability

All actions, including NAV calculations, fee computation, and liability settlements, are fully traceable on-chain. This provides investors and regulators with real-time transparency into fund operations, reducing the need for external audits or reporting, and ensuring a high level of security and trust in the system​​​.

However, the fund manager retains control over what information is shared with investors. Through Fume’s web interface, the manager can customize the level of visibility granted to investors. This can range from full transparency—allowing investors to see detailed aspects like the shareholder registry or fees extracted—to a more limited view, such as simply displaying the NAV. This flexibility ensures that fund managers can balance investor transparency with privacy or compliance requirements as needed.