FREQUENTLY ASKED QUESTIONS
What are digital assets?
The term digital assets refers to the emerging digital crypto currencies. Icoinic no longer deems ‘crypto currency’ sufficient a term for the scope and course of the current market.
Is your fund regulated by AFM or DNB?
Icoinic fund(s) is/are registered at the Autoriteit Financiële Markten (AFM), falling under an exception in the Dutch Act of Financial Supervision (Nederlandse Wet op Het Financieel Toezicht, Wft), article 2:66a and article 5:3 (1) (c), which is why there is no prospectus required for the funds. The exception requires investors to allow for a a minimal participation of EUR 100,000. No Icoinic funds require AFM or Dutch National Bank (Nederlandsche Bank, DNB) supervision.
How will I know my investment is safe?
We prioritize securing digital assets and have internal technological solutions in place to ensure a safe environment in which we can still adhere to a fast anticipation within the market.
Icoinic cannot be held responsible for loss or theft of crypto currencies of the fund, unless the loss or theft is due to a great negligence or omission on our part.
What are the main risks for me as an investor?
Each investor needs to assess his or her own personal situation in regard to their participation and verify they can and are willing to carry the financial risks involved. We urge potential investors to thoroughly read and study the available documentation. We deem all participants fully aware of all risks involved in investing in digital assets, and this fund in particular.
Generally: the higher the expected returns, the higher the risk. The expected yield on participations in the fund is contingent on the realized profit of the fund investments. Situations may occur where profit is lower than expected and even losses for investors could occur. Below are a few, but not all, of these cases:
Risk scenario: investment results are lower due to the crypto market having a high volatility that could either mean a positive or a negative result. Investments could lose significant or all value over a short amount of time, resulting in not having a large or any payout. The fund manager could risk not having enough revenue to cover the costs of managing the investment portfolio.
Risk scenario: (cyber) criminals could gain access to the digital asset storage, either at the institute or through one of the counterparties of the institute. This could mean a reduction in your payout to cover the loss of fund capital, meaning you could not be paid back the full share you’ve invested in the fund. The fund manager could risk not having enough revenue to cover the costs of managing the investment portfolio.
Risk scenario: one or more of the crypto markets the fund uses could have liquidity issues, resulting in (part of) the shares of the funds not having the needed liquidity. This loss could be deducted from the fund capital. In this case, you could not be paid back the full or any of the amount you’ve invested in the fund. The fund manager could risk not having enough revenue to cover the costs of managing the investment portfolio.
Risk scenario: blockchain technology issues that exert a downward pressure on the value of the digital assets. Your investments could then lose significant or all value over a short amount of time. In this case, you could not be paid back the full or any of the amount you’ve invested in the fund. The fund manager could risk not having enough revenue to cover the costs of managing the investment portfolio.
Risk scenario: new laws or regulations restricting investments in or the use of digital assets, resulting in high fluctuations of the stock prices. Your investments could then lose significant or all value over a short amount of time. In this case, you could not be paid back the full or any of the amount you’ve invested in the fund. The fund manager could risk not having enough revenue to cover the costs of managing the investment portfolio.
Investors should be aware of the fact they can get a payout that is lower than their invested share, or no payout whatsoever. The maximum amount at stake is the total amount invested in (participation of) the fund.
What are the costs involved in investing in Icoinic’s fund?
2% management fee (yearly fee, booked weekly, deducted monthly)
This fee goes towards covering the costs of managing the Icoinic funds. Booked weekly, deducted monthly.
Performance fee 20% (deducted weekly)
Performance fee of 20% over funds performances. Each week, after the NAV calculation, the fund manager calculates the performance fee. Whenever the fund capital exceeds the High Water Mark (HWM), the manager has the right to a 20% performance fee.
1% exit fee (one-off)
To discourage short term investments in the fund, we apply an exit fee, calculated over the total sum of the buy-out.
Transaction fees (when applicable)
Transaction costs of banks, markets and blockchains will be deducted when and as they occur. Transaction fees for buying, exchanging or selling digital crypto currency are included in the purchase, exchange or sales price. Prices vary per market and blockchain.
When and how is the Net asset value (NAV) calculated?
Every Thursday at 17:00 CET we calculate the NAV off the Icoinic fund(s). We stay as close as possible to the stock exchange price where the assets are located. All digital assets marked as ETH or BTC, or other digital assets, will be converted to EUR according to stock market prices where Icoinic transfers the assets to EUR and get the payout on the bank account of the relevant fund.
When can I transfer funds?
Every Thursday at 17:00 CET Icoinic either issues or redeems participations for their fund(s). This coincides the NAV calculation of the relevant fund(s). Investors’ requests for payout or redemption of shares (if adhering to the terms and conditions) before Thursday 17:00 CET will be carried out on Thursday (as per the price that day).
Do you have a minimum participation fee?
Yes, participation starts at EUR 100,000. The minimum amount for emptying is EUR 5,000. The total of the invested sum per participant can never be less than EUR 100,000 (diminution in value not included).
What is the minimum exit fee?
The minimum exchange rate for shares is EUR 5,000. Fractions of shares could be exchanged up to four (4) decimals. Each purchase may not lead to the remaining investment being under EUR 100,000, as the total invested amount may never be lower than EUR 100,000 (diminution in value not included).
What about taxes?
Physical persons investing in Icoinic fund(s) pay taxes in the Dutch box 3, contingent of the investment being of a private person. Entities with participations or other situations could involve other tax obligations. In these cases, we strongly advise consulting your tax advisor.
How do I know what my money is worth?
You’ll have access to a private section of our website; our fund manager. As a participant, this is where you’ll find your overview of the fund participations, recent prices per share, and the total value of your investment portfolio.
Where can I find more information about the digital assets my shares will be invested in?
Around the beginning of each month, we will send you a summary of the investment strategy for digital assets, a future-oriented market vision, and the investment portfolio. This report is exclusively available to active participants.
What is the dividends policy of the funds?
The Icoinic fund(s) has/have a periodic payout, no dividends. We do have the possibility of disbursing dividends when the total amount of the invested value exceeds regulations.
Can I sell my participation on secondary markets?
No, shares cannot be transferred to other parties and can only be exchanged with Icoinic.