Investment Product Terms
This page will guide you through the terms of the investment product and what each means specifically. Below is a sample of an investment product term sheet.
- Ticker - Represents the Asset Symbol. CGS01 represents the tokenized asset of “Crypto Derivatives Algorithmic Trading”, just like how BTC represents Bitcoin.
- Programme - The full name of the investment product.
- Base Currency - The currency that a user has to pay in.
- Settlement Currency - The currency that the user is paid in. The target return is based on Settlement Currency.
- Target Return - The expected return for the total duration of the term annualized.
This means for a $1000 investment, an 18% ‘target return’ product with monthly ‘distribution frequencies’, aims to return $15 every month for 12 months and $1000 principal by the end of 12 months. Therefore, total targeted return will equal to ($15*12 + $1000 = $1180) or (0.18 * $1000 = $1180).
*There is no guarantee that such return will be achieved a higher or lower return may be achieved. The value and/or return of investments may go up or down and past performance is not a guarantee of future returns. There is no guarantee that the investment objective will be attained and your capital is at risk.
- Total Tokens to be Issued this Trance - Total maximum supply of tokens for this investment.
- Issue Price (USD $) - Price per investment token.
- Minimum Investment (USD $) - The minimum investment per user.
- Subscription Period - Time period allowed to invest. If the investment is fully filled before the subscription period ends, then the period ends immediately.
- Transfer - Whether users are allowed to withdraw from or deposit on Lucent.
- Token Resale - Whether token will be allowed to be listed for trading.
- Token Issuance Date by - The date where users get credited their tokens in their Kucent accounts.
- Term Commencement Date - The date where target return starts to accrue.
- Term - The full length of the investment. Upon the end of the ‘Term’, the ‘NAV’ is returned to the investor.
- Lock-up Period - The period where users are not allowed to redeem.
- Distribution Frequency - How frequent interest returns are paid out (ie. Weekly, Monthly, or Quarterly).
- Distribution Payment Date and Time - Date and time of payment
- Token Discount - If there will be any discounts during the subscription period. If ‘none’ it means there are no discounts given at any point in time.
- Subscription fee - A one-time payment fee.
- Redemptions - Whether investors are allowed to get back their investments DURING the ‘Term’ but AFTER the ‘Lock-up Period’.
- Redemption Notice - The time taken before funds are credited into investor’s wallets
- Early Redemption Fee - The fee on the redemptions proceed if redeemed BEFORE the ‘lock-up period’ has ended.
- Redemption Fee - The fee to redeem DURING the ‘Term’ but AFTER the ‘Lock-up Period’.
- Issuer Management Fee -The annual management fee of the issuer whom is the quant fund.
- Issuer Performance Allocation - The performance fee of the issuer whom is the quant fund. This fee is only based on the profits of the investment, but not the capital. For example, if the fund returns 6% for the month on $100 capital investment, the fee is 50% of $3 (50% * [6% of $100]).
- Expenses - Expense charges related to running the fund that investors have to pay. If None, it means the fund has waived off charges.
- Dealer Performance Allocation - Not applicable.
- Dealer - Not applicable.
- Token Listing - Whether the investment can be listed on an exchange for secondary trading. If ‘None’, it means investors can only request to redeem their investments from Lucent.
- Token Selected Blockchain - The blockchain used to launch the investment token, usually Ethereum.
- NAV Target - The NAV is targeted to be kept at 1.00 (issue price) using the fund returns. There will be no dividend payout as it is used to top up the fund NAV. While this happens, there is NO commissions paid out to any parties (including the issuer fund) until NAV is above 1.00. Excess NAV is returned to investors in the form of the target returns.