Fund Usage Structure by AMCs

[AMC-Asset Management Company]

AIDUS
2 min readOct 19, 2018

As was mentioned earlier, the ADFP (AIDUS Decentralized Fund Platform) platform allows investors to become members and sign contracts with the asset management company to use the ADFP platform.

Recently, we talked about fund usage structure by Investors. But for the better understanding of how ADFP works, let’s look through the fund usage structure by AMCs.

Fund Usage Structure by AMCs

In the event of a fund’s maturity or mid-term closing request, the asset management company will purchase the AIDUS corresponding to the yield return from the exchanges as per the value of real currency and that will be paid to the investor.
In this case, the date and method of payment shall be notified to the investor prior to the fund’s entry and paid on the correct schedule, and the AIDUS payment or cash payment shall also be agreed upon by the contract when investors sign into the fund in the first place.

A contract with AMCs includes:

🔹 AMC Permission
🔹 Fund management permission
🔹 Other Documentation
🔹 Contract with ICO Entity

If investors invest in large quantities or ask for a large amount of redemption, which might trigger the AIDUS’ market price to fall / rise, in which the asset management companies can be affected by the market price. In order to prepare for this, we must secure liquidity supply through contract with a LP (Liquidity Provider). If the asset management company can supply liquidity on its own, LP may not be needed, so the asset management company can choose to use LP for its service.

In addition, just as in the real economy, every asset management company designates a trustee to protect investors’ investments, and by doing so, the actual investment funds must be managed by the trustees. This will be explained separately in the terms of the contract.

Keep paying attention on QTS weekly rate changes!

Further information you can find through AIDUS websites:

Official website: https://aidus.io
Facebook: www.facebook.com/AIDUSofficial
Twitter: twitter.com/AIDUSofficial
Reddit: reddit.com/user/AIDUSofficial
Telegram:t.me/aidusofficial
YouTube:www.youtube.com/channel/UCO49UEg0xY3K933dkcfhZEA

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AIDUS
AIDUS

Written by AIDUS

AIDUS is a decentralized platform established upon the Ethereum network to serve as a professional asset management platform. Official website https://aidus.io

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