What is a digital asset?

A digital asset is a term that describes any asset in a digital form. In the context of Icoinic, we refer to the emerging digital cryptocurrencies. Because the term ‘cryptocurrency’ doesn’t represent the scope and course of the market, we chose to use ‘digital asset’ in most of our communication.

Is your fund regulated by AFM or DNB?

All funds under Icoinic are registered at the Autoriteit Financiële Markten (AFM). The funds fall 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 a minimal participation of EUR 100,000. No Icoinic funds require AFM or Dutch National Bank (Nederlandsche Bank, DNB) supervision.

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). Prices used in the valuation are market prices on the exchanges where the assets are located. All digital asset prices, such as ETH or BTC, will be converted to EUR. Between NAV moments Icoinic publishes estimates of the fund NAV on their website (hourly) and in the private login (daily). These estimated NAVs are purely for tracking fund performance and do not consitute a formal NAV. The formal NAV at which clients can enter or leave the fund is published at Thursday 17:00.

What about taxes?

Dutch private individuals investing in Icoinic fund(s) pay taxes in the Dutch box 3, contingent of the investment being of a private individual. Entities with participations or other situations could involve other tax obligations. In these cases, we strongly advise consulting your tax advisor.

Do you have a minimum participation fee and/or redemption amounts??

Yes, participation starts at EUR 100,000. The minimum amount for redemption or subsequent deposits is EUR 5,000. The total of the invested sum per participant can never be less than EUR 100,000 (losses in value not included). If a redemption would lower the capital below the minimum investment of EUR 100,000 the full participation will have to be redeemed.

How do I know what my money is worth?

You will have access to a personal dashboard via the Icoinic website. 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.

How will I know my investment is safe?

We prioritize the security of digital assets! Due to the need to quickly anticipate market movements Icoinic fund do store a vast majority of the assets on exchange accounts for direct market access. Icoinic carefully selects exchanges eligible for cooperation through due diligence. However, cannot exclude this risk of assets being lost at exchanges. Icoinic cannot be held responsible for loss or theft of crypto currencies of the fund, unless the loss or theft is due to a severe negligence or omission on our part.

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).

Can I sell my participation on secondary markets?

No, shares cannot be transferred to other parties and can only be exchanged with Icoinic.

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.

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.

Every investor needs to assess their own personal situation in regard to their participation. They must verify that 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.

In general, the higher the expected return, the higher the risk. The expected return depends on the realized gains. There may be situations in which the profit is lower than expected and there may even be losses for investors. Below are a few, but not all, of these cases:

Risk scenario 1

Investment results are lower due to the crypto market surges in high volatility, which can lead to a positive or 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 2

(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 3

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 4

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 5

New laws or regulations restricting investments in or the use of digital assets, resulting in high fluctuations of the market 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.