📇Registrar & Transfer Agent

In traditional finance, the registrar and transfer agent are key intermediaries responsible for tracking who invested, managing fund subscriptions, and facilitating the movement of money. These intermediaries often introduce delays, costs, and the potential for human errors. In Fume’s on-chain solution, this entire process is replaced by smart contracts, eliminating the need for intermediaries and drastically reducing errors.

⚠ Fume is Not a Financial Intermediary

It’s important to note that Fume is not a financial intermediary. Instead, it is a protocol comprised of smart contract code designed to automate fund administration processes. The liquidity itself is controlled by the fund manager and can only be directed to the predefined fund custody address, which ensures the security of the capital. Fume’s role is purely to automate and streamline the administrative processes through code, without ever holding or controlling the assets.

Seamless On-Chain Investments

With Fume, investors can seamlessly invest by sending capital from their wallets directly to the fund’s smart contract. This capital is then held in the smart contract, pending the next Net Asset Value (NAV) calculation. Only after this event does the liquidity move out of the transfer agent, and tokenized shares are issued to the investor, representing their ownership in the fund. This ensures that the capital is properly valued before it is fully processed.

Unlike traditional systems where transactions can be blocked, delayed, or subject to hefty fees, Fume’s smart contract eliminates manual errors and speeds up the process. Investors avoid common issues like sending funds to the wrong address or network. They simply connect their wallet, click "deposit," and the transaction is automatically prepared and executed by the protocol.

Off-Chain Subscriptions

Fume also supports off-chain subscriptions for investors who prefer traditional payment methods. For instance, fund managers can share bank details with an investor, allowing them to make a wire transfer. Once the funds are received, the manager notifies the smart contract of the total amount, which then issues the corresponding tokenized shares.

Redemptions and Fees

When an investor wishes to redeem their investment, the tokenized shares are burned, and the redeemed amount is transferred back to the investor's wallet. Entry and exit fees are automatically calculated and extracted by the protocol, ensuring a smooth and transparent process. This automation also removes the need of communicating the details of each transaction with the fund administrator.