Icoinic Algorithmic Fund

Icoinic funds are registered at the Dutch Authority for Financial Markets (AFM). The funds make use of an exception in the Financial Supervision Act (Wft) (article 2:66a and article 5:3 (1) (c) of the Financial Supervision Act (Wft)), and so there is no permit or prospectus required. In order to make use of this exception, investors of the icoinic funds must bring a minimal participation of € 100,000. All icoinic funds are excluded from supervision by the AFM as well as the Dutch central bank (DNB).

The security of digital assets is one of our highest priorities. The nature of the Fund demands quick availability of our digital assets. Icoinic has developed internal solutions which attribute to a safe environment and the possibility to anticipate the market swiftly. Icoinic cannot be held accountable for loss or theft of cryptocurrencies of the fund, unless the loss or theft is due to gross negligence or deliberate carelessness on our part.

Icoinic offers two types of funds. The icoinic digital asset fund and the Icoinic digital asset index fund.
The icoinic digital asset fund trades cryptocurrencies on a daily basis. Additionally, leverage products can be used and the fund manager can decide, after detailed analysis, to become part of an ICO.
The icoinic index fund is a fund which invests in cryptocurrencies with a solid background and a proven track record. Monthly assessments will be made of the current investment portfolio and supplemented if necessary. The strategy is mathematically predetermined. The fund manager decides if there are funds which are to be added to the asset allocation or which should be replaced.

Every investor should assess their own personal situation to determine if the economic risk of the investment in the fund lies within their ability to bear loss and risk appetite. Potential investors are therefore urged to carefully read the fund documentation. The fund will assume that investors have carefully weighed all the risk factors related to investing in digital assets and the fund in particular, prior to taking the decision to invest in the fund.

The general rule is that risk is related to returns and therefore that higher potential returns also come at a higher risk of losses. The potential return of the fund is dependent on the realized profit on the investments. Circumstances can occur as a result of which lower returns as expected or even losses are incurred by investors. Among (but not limited to) these circumstances are:

The risk exists that investment results are lower than expected due to the high volatility in the digital assets markets, which can have both positive and negative impact. Digital assets value can decrease significantly, or even drop to zero, in a relatively short period of time. In this case, you run the risk to fully lose or only partially redeem your investment. For the manager of the fund this could mean that there is not enough income to cover the costs of managing the fund.

The risk exists that (cyber) criminals get access to the digital assets or funds in custody for the fund. This can happen either at the fund foundation itself, but also at partners of the fund where assets are placed in custody. This can result in losses which are to be incurred by the fund and their investors. In this case, you run the risk to fully lose or only partially redeem your investment. For the manager of the fund this could mean that there is not enough income to cover the costs of managing the fund.

The risk exists that cryptocurrency exchanges, used by the fund for trading and custody, run into liquidity issues, which results in fund assets becoming illiquid. This can result in losses which are to be incurred by the fund and their investors. In this case, you run the risk to fully lose or only partially redeem your investment. For the manager of the fund this could mean that there is not enough income to cover the costs of managing the fund.

The risk exists that issues with the blockchain technology occur, which depreciates the value of digital assets. This could result is a significant decrease, or even drop to zero, of digital assets value in a relatively short period of time. In this case, you run the risk to fully lose or only partially redeem your investment. For the manager of the fund this could mean that there is not enough income to cover the costs of managing the fund.

The risk exists that laws and regulations are introduced which restricts the use and/or trading in digital assets, resulting in extreme volatility in market prices. This could result is a significant decrease, or even drop to zero, of digital assets value in a relatively short period of time. In this case, you run the risk to fully lose or only partially redeem your investment. For the manager of the fund this could mean that there is not enough income to cover the costs of managing the fund. Investors should at all times consider the risk that they will partially or fully lose their investment in the fund. The maximum loss is equal to the principal amount(s) paid for the participations in the fund.

A 0.1% monthly management fee.

A performance fee of 20% for the icoinic digital asset fund. Every week after the determination of the NAV and before the charging of expenses to the NAV, the fund manager determines the performance fee. When the fund capital has risen above the high watermark (HWM), the fund manager is entitled to a 20% performance fee.

A performance fee of 15% is applicable to the icoinic index fund according to the high watermark.

In the case of redemption, a redemption fee of 1% over the total redemption price is owed, resulting in the total redemption amount. This fee is intended to discourage short-term trading in the fund's participations.

Transaction costs by banks, stock markets and blockchains shall be charged whenever they occur. Transaction costs which are charged when cryptocurrencies are bought, sold or exchanged are part of the purchase- or selling price. Transactions costs are variable and differ per stock market and blockchain.

The NAV of all icoinic funds is calculated every Thursday at 17:00 CET. The NAV is determined in accordance with the market price. All digital assets which are designated by ETH or BTC or other digital assets are converted to EUR by means of the market prices where icoinic funds can convert digital assets to EUR and disburse to the account of the relevant fund.

Every Thursday at 17:00 CET icoinic will spend or repurchase participations for all her funds. This coincides with the determination of the NAV of the fund concerned. Investors who have requested payment or repurchase of participations and who are in conformity with the terms and conditions of the fund, will be paid out that same day.

The minimum subscription price is € 100,000. Subsequent deposits must amount to a minimum of € 5,000. The total invested amount per client cannot be allowed to be less than € 100,000 (devaluation excluded).

The minimum amount for which participations can be redeemed is € 5,000. Fractions of participations can be redeemed up to four decimal points. Every purchase may not lead to the total invested amount becoming lower than € 100,000, since the total invested amount cannot be allowed to be less than € 100,000 (devaluation excluded).

Individuals who invest in one of the icoinic funds pay their taxes in box 3, provided that the investment shall be continued as a private investment. Entities with participations or other situations can result in other tax obligations. It is advised that tax consultants are consulted in these type of situations.

Clients have their own private page on the website of the icoinic fund manager. On this private page, clients have insight into the number of participations within the fund, the most recent price per participation and the total value of the investment portfolio.

You will receive a summary of the investment strategy for digital assets, a future-oriented vision statement and the investment portfolio every month. This monthly overview is only available for clients.

All icoinic funds do not pay out dividends periodically. Icoinic funds have the option to pay out dividends if the total sum of the managed assets exceeds specific regulatory limits.

Participations of the icoinic funds cannot be transferred to other parties. They can only be redeemed by icoinic.