INVESTMENT TERMS & GLOSSARY
Clarity Behind the Structure.
Understanding the Structure, Terms & Process Behind Your Investment
INVESTMENT & FUND GLOSSARY
Understanding the Structure, Terms & Terminology
Investment Fund
The investment structure through which participating capital is pooled and deployed according to the fund’s stated trading and investment strategy.
Investment LLC
The limited liability company through which investors participate in the fund and hold their investment interest, subject to the governing agreements.
Investor
An individual or entity that contributes capital to the Investment LLC under the applicable investment documents.
Capital Contribution
The amount of capital an investor contributes to the Investment LLC.
Investment Term
Each investment period is structured around a 30 day contract cycle, rather than a long term lockup.
30 Day Contract
The standard investment cycle. At the conclusion of each 30 day period, profitability and available capital are accounted for according to the fund agreements.
No Long Term Lockup
The investment is not structured around a multi year commitment. Capital operates within recurring 30 day investment cycles, subject to the applicable terms and withdrawal procedures.
90 Day Grace Period
A requested initial period during which the fund asks investors to allow their capital to remain in the structure for up to 90 days while the investment relationship is established.
Grace Period Distribution
During the 90 day grace period, the fund may distribute 10% of the investor’s profitability on a monthly basis, subject to the governing agreements.
Available Capital
Capital that has completed the applicable investment cycle and is available for distribution or continued participation, subject to the fund’s terms.
Profitability
The positive investment performance generated during an applicable 30 day investment period before applicable fees and distributions.
Gross Profit
The investment profit generated before deducting management fees, performance participation, or other applicable expenses.
Net Profit
The remaining profit after applicable fees, expenses, and other permitted deductions have been accounted for.
Profit Threshold
The first 12.5% of monthly profitability before the performance participation described in the fund’s fee structure applies.
Performance Participation
The fund’s participation in profitability above the applicable 12.5% threshold. Under the stated structure, the participation is 10% of profit above 12.5%.
Management Fee
A 1% monthly management fee charged in connection with management and administration of the fund, as provided in the governing agreements.
Fee Structure
The combination of the applicable management fee and performance participation used to determine the investor’s net profitability.
Rollover
The continuation of available capital and/or net profitability into the next 30 day investment cycle rather than requesting distribution.
Monthly Cycle
The recurring 30 day period used to calculate investment performance, applicable fees, and available distributions.
Distribution
A payment of available funds or profitability from the Investment LLC to an investor in accordance with the governing agreements.
Withdrawal
A request to remove available capital or applicable profits from the Investment LLC, subject to the applicable 30 day cycle and withdrawal procedures.
Principal
The investor’s contributed capital, separate from any investment profitability.
Investment Profit
Profit attributable to the investor’s capital during an applicable investment period.
Fund Performance
The investment results generated by the fund during a specified period. Past performance does not guarantee future results.
Capital Preservation
The objective of managing investment capital with consideration for risk and potential loss. Capital preservation is an objective, not a guarantee.
Risk Management
The processes and controls used to identify, evaluate, and manage potential investment risks.
Trading Capital
Capital made available to the fund for deployment into its approved trading or investment activities.
Investment Period
The period during which investor capital is participating in the fund before the next accounting or distribution cycle.
Accounting Period
The period used to calculate applicable performance, fees, distributions, and available capital.
Net Asset Value (NAV)
The value of the fund’s assets after applicable liabilities and obligations have been accounted for.
Investor Account
The records maintained for an investor reflecting contributed capital, applicable profits, fees, distributions, and available balance.
Investment Documents
The agreements, disclosures, subscription materials, operating documents, and other materials governing an investor’s participation.
Accredited Investor
An investor who meets the applicable legal and financial requirements for accredited investor status under applicable securities laws.
Qualified Investor
An investor who satisfies the eligibility requirements established for participation in the particular investment offering.
Subscription
The process through which an eligible investor applies to participate in the Investment LLC and contribute capital.
Redemption
The process of requesting the return of an investor’s interest or available capital, subject to the governing documents and applicable procedures.
Liquidity
The ability to convert an investment interest or available capital into cash. Liquidity is subject to the fund’s terms, investment cycle, and applicable procedures.
Investment Strategy
The defined approach used by the fund to identify, evaluate, and execute investment or trading opportunities.
Portfolio
The collection of positions, investments, or trading exposures held or managed by the fund.
Diversification
The practice of allocating capital across different investments, markets, instruments, or opportunities to manage concentration risk.
Volatility
The degree to which the value or price of an investment can fluctuate over time.
Drawdown
A decline in the value of an investment or portfolio from a previous high point.
Risk of Loss
The possibility that an investor may lose some or all of their invested capital. Investment performance is not guaranteed.
Compounding
The process of retaining investment profits in the fund so that future performance may be calculated on a larger capital base.
Profit Distribution
The payment of applicable investment profitability to an investor following the applicable accounting and distribution process.
Reinvestment
The decision to leave available capital and/or profitability in the Investment LLC for participation in a subsequent investment cycle.
30 Day Rollover
The continuation of an investor’s participation from one completed 30 day cycle into the next.
Fund Management
The oversight, administration, strategy implementation, risk controls, and operational activities associated with managing the Investment LLC.
Investment Partner
A participating investor within the fund relationship. The term describes the relationship and does not by itself create a separate legal classification.
Governing Agreement
The legally binding agreement that establishes the rights, responsibilities, fees, procedures, and obligations applicable to the Investment LLC and its investors.
Offering Terms
The specific terms under which an investor may participate, including eligibility, investment amount, fees, investment cycles, distributions, and withdrawal procedures.
Net Investor Return
The amount of profitability remaining for the investor after applicable fees, expenses, and performance participation have been deducted.
Investment Cycle Completion
The point at which a 30 day investment cycle has concluded and the fund performs the applicable accounting for that period.
Available for Distribution
Capital or profitability that has completed the applicable cycle and is eligible for distribution under the governing agreements.
IMPORTANT NOTICE
This glossary is provided for general informational purposes and is intended to explain terminology used in connection with the Investment LLC and its investment structure. The governing investment documents control in the event of any difference between this glossary and the formal terms of an offering.Investment involves risk, including the possible loss of principal. Past performance is not indicative of future results. No investment return or level of profitability is guaranteed. Eligibility, fees, distributions, withdrawals, and other terms are subject to the applicable offering and governing documents.