This article will cover the basics or joining and running funds, a more detailed explanation of all the features and options will come later. For now we will focus on the most important factor for both Fund Managers and Investors. Please read the whitepaper on our website which covers the basic mechanics first, or much of this will not make sense.
There are 3 sections in the application landing page :
· Open Funds: Currently open funds that have not started yet
· Active Funds: Currently running funds and no longer accepting contributions
· Ended Funds : Closed or aborted funds
· My Funds : All the funds you have created or joined
The planned fund data to be displayed in this UI is:
· Leader: Address of the fund manager
· Collateral: The amount of IFUND the fund manager has staked on the fund
· Member Fee: How much IFUND is required to join the fund
· Total Contribution: How much ETH has been added to the fund so far
· My Contribution: How much ETH have you deposited to the fund
· Number of Members: How many people are in the fund
· Max ETH Allowed: Total ETH the fund is willing to accept
· Leader % Cut: The percent of profit the fund manager will keep
· Time Until Start: Amount of time until entries are closed and trading begins
· Fund Run Time: Length of time the fund will be active
For Fund Investors
Every fund is different and carries different risks. Due to the amount of creation options we provide to managers, there is a near infinite amount of fund possibilities. By including so many customization options we are creating a free market that will let the best fund types reveal themselves over time.
There is one very important calculation that needs to be made, and there is one factor that is impossible to know. The calculation is simple, how much value in IFUND did the manager stake and how much value of ETH is the max the fund is willing to accept, this is known as the Colletralization Ratio. This information will be directly displayed when you are selecting a fund. The higher the IFUND value is compared to the max ETH value they are willing to take, the safer the fund is to join. The impossible factor is values of IFUND and ETH will always change over time. You could join a fund with a great colletralization ratio, but over time the price ratio can change in either direction. By the end of the fund, the colletralization ratio could be either more or less favorable to you.
Before joining a fund ask yourself the following questions:
· How long do you want have your money locked for? Once the fund starts, there is no way to get your ETH back until the end.
· Is the fund manager known or anonymous?
· Is the leader going to keep a reasonable percent?
· What’s the value of the IFUND in collateral compared to the max ETH the fund will accept? (The Colletralization Ratio)
These are the options you must select when creating a fund:
· Tokens available for trading. You can either have access to all Uniswap tokens or use the default list.
· Collateral. The more IFUND you stake compared to the max ETH you are willing to accept, the more favorable your fund will be to users.
· Joining fee: Half of the fee is burned, the other half goes to fund manager. These fees act as an extra cushion if the fund manager doesn’t profit, and keeps them in case of a profit.
· Max ETH the fund will accept. This lets the early people who join your fund know what the max collateralization ratio can be.
· Minimum starting fund size: The minimum to reach to start the fund.
· Maximum fund size: The maximum the fund is willing to accept.
· Maximum time till start: If the fund doesn’t start before the time, the investors can withdraw their funds
· Maximum trading time: The maximum amount of time the fund can make trades.
· Manager fee: This fee is deducted from the profit the fund makes and paid to you.
Once you select your options, hit the “Next” button to verify then send the transaction. Once it confirms, your fund will be displayed on the main page and investors will be able to join. If you are the fund manager there will be a button to manage the fund, just click that and you will be taken to an interface near identical to Uniswap.
WARNING WARNING WARNING WARNING WARNING
If you want to invest in your own fund, please use a different wallet.
If you do not trade your tokens back to ETH before the end of the fund timer it will count as a loss. The users will get a cut of your collateral, and the investors will also be able to withdraw the tokens you didn’t sell proportional to the percent of ETH they put in compared to the total. Set extra time, and close funds early to be extra safe.
THE BEST… IS YET… TO COME!!!
P.S. If you’re a good trader, please use this to help out the little guys. We were all there at one time or another.