About the fund
| RETURN YTD* | EXPECTED RETURN | HIGHER RETURN THAN TRADITIONAL PORTFOLIO* |
|---|---|---|
| 10,39% | 15% | 4,97% |
The BlockchainTraders Liquidity Fund uses Liquidity Mining, also known as Yield Farming to generate returns. Liquidity Miners or Yield Farmers use complex strategies. They constantly move liquidity between different DeFi apps to maximise returns and minimise risk. The fund minimises risks by only providing liquidity in Stable Coins – these have a fixed exchange rate with FIAT currencies like the American dollar – eliminating the risks of exposure to cryptocurrency price changes. Therefore, the fund is market neutral, i.e., generally, not dependent on the market direction as an alternative for a directional investment in cryptocurrencies (like BlockchainTraders Growth Fund offers).
Opportunity: taking advantage of a revolution
- Unique access: with the Liquidity Fund, BlockchainTraders provides an opportunity for investors to take advantage of the revolutionary growth in Decentralised Finance;
- BlockchainTraders has in-depth experience and knowledge of this market and a proven track record in managing cryptocurrencies;
- The strength of the investment strategy lies in the active management of Liquidity Mining positions in order to maximize returns and minimize risks.
Riskmanagement: due diligence and risk mitigation
Risk management is crucial in the investment process, which focuses on generating the most stable returns possible and limiting downward movements in the long term. Risks are greatly mitigated by:
- Only selecting DeFi applications whose Smart-Contracts have been audited by reputable parties;
- Only offer liquidity in Stable Coins: due to the fixed exchange rate with FIAT currencies, such as the US dollar, the risks of being exposed to cryptocurrency price movements are eliminated;
- There has to be sufficient liquidity in the DeFi-application and in the Stable Coins;
- Continuous monitoring and reallocation of the DeFi-applications.
Investment information
| Fonds inception | October 18, 2021 |
|---|---|
| Investment strategy | Liquidity Mining |
| Lead Portfolio manager | Justin Kool |
| Co-Portfolio manager | Michiel van der Steeg |
Fund information
| Legal structure | Mutual Fund |
|---|---|
| Fiscal status | Untaxed |
| Transferability | Non transferable |
| Minimum participation | €250.000 |
| Redemption Fee | 2% (first year only) |
| Withdrawals / Deposits | Monthly |
Cost structure
| Start-up costs | €1.295 (one-time)** |
|---|---|
| Management fee | 0,4% (quarterly) |
| Performance fee | 15% (lifelong HWM)1 |
| Other costs | 1% 2 |
Service providers
| Investment manager | BlockchainTraders B.V. |
|---|---|
| Judicial owner | Stichting Toezicht BlockchainTraders |
| Bank | Bunq B.V. |
| Custodial solution | Fireblocks |
| Corporate Exchange | Bitvavo / Flow Traders |
| KYC Software | ComplianceWise |
| Wwft Internal Auditor | Endymion |
Fund documentation Liquidity Fund
| Essential information document | Request |
|---|---|
| Information Memorandum | Request |
| Performance update | Request |
| Product Information document | Request |
* Return from December 31, 2023, to August 11, 2024.
** Applicable to the BlockchainTraders Liquidity Fund.
1 High Water Mark (HWM), and no hurdle rate applies.
2 'Other' refers to accounting costs, registration costs at the AFM.
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