• Contract: All investments or trades are processed through a contract-based approach, supported by smart contracts. It’s designed to provide security and transparency to both investors and managers.
• Contract Cap Value: This represents the maximum aggregate value of assets that can be held under a single contract, specified by contract managers. When this threshold is met, the contract is closed to new investments, ensuring that the contract does not exceed its designed fiscal capacity.
• Profit Sharing Fee: A proportion of profits earned by investors that is allocated to managers as a reward for their investment management decisions.
• Management Fee: A fee expressed as a percentage of the total amount invested by each investor. This fee compensates managers for their expertise, time, and efforts in managing the investment portfolio. It is deducted from the investors' funds to cover operational and administrative expenses related to the management of the contract.
• HopOn Service Fee: HopOn charges a service fee of 2% on the profits distributed from investors to managers (i.e. the Profit Sharing Fee). This fee is levied to support the maintenance and development of the HopOn platform and our services. Notably, this fee is not applied in scenarios where the contract incurs losses, demonstrating our commitment to a fair and success-dependent fee structure.
• Lock-in Period: The specified timeframe during which investors are not permitted to withdraw their funds from the contract. This period is crucial for ensuring stability within the investment contract and allows the investment strategy to unfold without premature disruptions.
• Risk Reserved Capital: Funds deposited by the manager acting as a financial safeguard, this capital is intended to protect investors by covering potential losses up to a certain limit. Should the Risk Reserved Capital be depleted, any further losses will be borne by the investors. This setup underscores the risk-sharing aspect of the investment contract and promotes a sense of responsibility and alignment between the manager and investors.