For Managers

How DeFunds work

Create Fund

Creating a fund on DeFunds is very simple - anyone can do it by paying a nominal fee in USDT + a small amount in base network currency for the gas.

During fund creation, the manager needs to specify:

Fund info - name, description and image
SF and PF fee rates
Reporting period
Allowed tokens and services
Indent period
Manager address and manager share
Is High-Water Mark (HWM) enabled or not
Is fund private or not

Note: updating fund's allowed tokens and services takes a considerable amount of time. We recommend you to plan the fund settings in advance. You can find more details in updating settings section.

The final step for fund owner is to confirm transaction in his wallet. Once done, the new Trade contract is deployed, which means that the fund is created. Additionally, a separate instance of the ERC20 token ITKN is deployed for each created fund. Owning this token means ownership of shares in the fund. ITKN tokens are allocated to the investor upon deposit into the fund and burned upon withdrawal from the fund.

Fund Manager

Important details:

The Manager's share — the percentage of all the subscription fees and performance fees during each reporting period.
By default, the fund manager is its owner.
Only the manager will have access to Trade capabilities within the fund.

Making an Investment

Owners and managers can invest in their DeFunds as usual investors.

Trading

As a prerequisite to trading, your fund needs to have non-zero balance. For example, you can invest some amount of money into your fund, and wait for the next report. Once deposit is done, manager is authorized to execute set of operations on the Trade contract, related to trading activities with ERC20 tokens. Operations can differ depending on the network, but in general they are:

Changing tokens on exchanges
Staking
Futures trading

One Click Trading

With One Click Trading feature, the manager can reduce the number of signing pop-ups from the wallet, thus speeding up trades.

After finishing the process, you will get you Subaccount generated:

The subaccount is used to pay commissions without wallet signature popups.
The subaccount's private key is kept on the client and is never sent anywhere. However, for security reasons, it's not recommended to keep large amounts of money on the subaccount.

Private Funds

You can make your fund private during fund creation.

Only the fund owner is allowed to invest in private fund.
Private fund isn't visible on the 'Market' page but still can be accessed via link.
Privacy can be changed in the settings.
Users still can withdraw from private funds.

Closing Fund

Manager is always able to close the fund - it is needed to just press the Close button on the fund's page, and complete transaction in the wallet. Closing a fund entails the following:

An unplanned report happens
All positions in the fund are automatically closed
Indent stops working
The fund is removed from the market page

Transfer of Ownership

Fund owner can transfer ownership of the fund to another address. The previous fund owner loses access to fund management; this action cannot be undone.

All commissions earned by the previous fund owner will be withdrawn to their address at the same time as ownership is transferred.