Whitepaper

Create your own ETF and earn as a fund manager

Custom Decentralized Exchange Traded Fund (DETF)

Introduction

EarlyVentures is proud to introduce the Custom Decentralized Exchange Traded Fund (DETF), a revolutionary feature that allows users to create, manage, and share their own customized ETFs. This innovation enables users to become fund managers in less than 5 minutes, leveraging the power of decentralized finance (DeFi) to offer enhanced flexibility, security, and transparency.

The Custom DETF empowers users to design their own ETFs with up to 100 different tokens, providing a seamless and efficient way to manage and share investment strategies. This feature is ideal for crypto enthusiasts, influencers, community leaders, and investors looking to diversify their portfolios with a decentralized and transparent solution.

Benefits

1. Instant Deposits and Withdrawals & Real-Time Price Updates:

   • Enjoy the convenience of immediate transactions and get price updates every 5 minutes ensuring liquidity, flexibility, and up-to-date information for better decision-making.

2. 24/7 Tradability:

   • Trade your fund any time, day or night, providing continuous access to the market.

3. Monetization:

   • Fund managers can earn through various types of fees, providing an additional revenue stream.

How It Works

Create Your ETF:

• Users can design their own ETF by selecting up to 100 tokens based on their investment strategy.

Share with Your Community:

Users can share their ETF with their community and friends, allowing them to invest easily.

• Share Your Link: Users can share a link from EarlyVentures, allowing others to buy with any cryptocurrency or card.

• Embed Purchase Widget: Fund managers can embed the purchase widget on their website to facilitate easy investment.

• Upcoming Integrations: We are working on integrating with Telegram bot and mini-apps, so you can sell your ETF tokens directly on Telegram.

Earn Profits:

Fund managers can earn through different types of fees:

• Deposit Fee: A fixed amount in USD for adding funds.

• Withdraw Fee: A fixed amount in USD for withdrawing funds.

• Management Fee: A percentage of the TLV (Total Locked Value) set per year. The standard amount is 2%.

• Performance Fee: Typically between 5% to 25% of the performance, based on a high-water mark. This fee is recommended as it is considered fair.

High-Water Mark Explained

The high-water mark is a performance fee calculation method used to ensure fairness to investors and to fund managers. Here’s how it works:

• Initial Value: When an investor first puts money into the fund, that amount is recorded as the initial high-water mark.

• Performance Calculation: The performance fee is only charged on the new profits that exceed the previous high-water mark.

• Resetting the Mark: If the fund’s value decreases, no performance fee is charged until the fund’s value surpasses the previous high-water mark.

Example:

• Year 1: An investor puts $10,000 into a fund. By the end of the year, the fund grows to $12,000. The high-water mark is now $12,000, and the performance fee is charged on the $2,000 profit.

• Year 2: The fund drops to $11,000. No performance fee is charged.

• Year 3: The fund grows to $13,000. The high-water mark is surpassed, so the performance fee is charged on the $1,000 profit above the previous $12,000 mark.

This method ensures that investors only pay performance fees on actual profits beyond their highest investment value, promoting trust and fairness.

Recommended Fee Structure

Fee Type	Recommended Amount
Deposit Fee	$0
Withdrawal Fee	$5
Management Fee	2% of the TLV (Total Locked Value) per year
Performance Fee	20% of the performance, based on a high-water mark

Fee split

Fees are split between EarlyVentures and the fund manager, depending on the Total Locked Value (TLV) in the funds:

Total Locked Value (TLV)	Fee for EarlyVentures
0-10k	20%
10k-50k	10%
50k-100k	9%
100k-200k	8%
200k-300k	7%
300k-500k	6%
500k+	5%

• Fee Timing: Fees can be taken daily, weekly, or at the convenience of the fund manager.

• Profit Distribution: Profits are distributed instantly to user wallet in USDT

Conclusion

Custom DETFs represent a significant advancement in the world of ETFs, combining the benefits of decentralized finance with the structure and familiarity of traditional ETFs. By providing a platform for users to create, manage, and share their own ETFs, EarlyVentures is empowering individuals and communities to take control of their investments in a secure, flexible, and profitable manner.

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This section can be added to your whitepaper to clearly explain the concept, benefits, and workings of the Custom DETF, as well as the fee structure and sharing options. Let me know if you need any further adjustments or additions!