Yes, we are light registered with the Dutch Authority for Financial Markets (in Dutch called Autoriteit Financiële Markten / AFM). However, we are exempted from the prospectus and license requirement, as the minimum investment amount is 100.000 euro (hundred thousand euro). Therefore, we fall outside the supervision and scope of the AFM and the Dutch Central Bank (DNB). Following article 2:66a and 5:3(1)(c) of the Dutch Financial Supervision Act (Wft), no license and no prospectus required for this activity.
How are my investments secured?
We make it a priority to keep your investment secure, and have therefore set several security methods and processes. More than half of the fund is held in cold storage (safe coins, high potential mid and low market). The remaining share of the fund’s investments (e.g. day trading and ICOs) are secured through a combination of both online and offline wallets. Both require multi-signature access and two-factor authentication. Although we are continuously monitoring for improvements and updates, we cannot be held responsible for loss/theft of the fund’s cryptocurrencies – unless this was caused by willful misconduct and/or gross negligence on the part of Moda Capital.
Does the Moda Capital also actively trade in cryptocurrencies?
Trading is the exchange of cryptocurrencies, to make a short term profit, based on of our proprietary trading strategies. Like Forex markets, you can also buy and sell a cryptocurrency for another, like Bitcoin or another cryptocurrency for USD and Euro. Besides trading, we are also investing in cryptocurrencies for the long-term horizon. This is known as ‘buy and hold’.
We only select projects and cryptocurrencies with practical use cases and utility. These projects are identified through fundamental and market analyses, as well as through our international network in the Blockchain and cryptocurrency ecosystem.
What are the risk factors of investing in the fund?
Due to the relatively low overall market value (in comparison to the global financial markets), significant volatility, and high unpredictability of cryptocurrencies, an investment in cryptocurrencies is considered a high-risk investment. Prospective participants should be aware that cryptocurrencies are subject to extreme market fluctuations and other risks inherent in investing in cryptocurrencies. The value of cryptocurrencies and the income derived from them may fall as well as rise and participants may not recover the original amount invested in the fund. Therefore, the fund is only suited for participants who can afford such a high level of risk.
I want to invest in the fund. What are the costs?
There are several costs involved, when investing in the fund. Please find an overview below.
- 2% annual fixed fee over the assets under management
- 20% annual profit share over high water mark
- 0.5% redemption fee (credited to the fund assets)
- Variable transaction fees (incurred on exchanges and Blockchains)
How can I participate in the fund?
When and how is the net asset value (NAV) determined?
The net asset value (NAV) is the sum of the fund’s assets as an indication of its current value. All these prices are then aggregated to arrive at the value of the fund’s entire portfolio. The NAV is calculated every week on every first Wednesday of the month at 15.00 CEST. Bitcoin’s share in our fund is calculated on the prices provided by Bitonic. The other calculation of the other cryptocurrencies is based on prices provided by Coinmarketcap. The NAV is expressed in euros.
When can I enter, or exit the fund?
The fund will issue and redeem units every first Wednesday of the month at 15:00 CEST, unless the NAV is suspended or the prospectus provides otherwise. The issuance or redemption of funds happens at the request of prospective participants/investors and should be sent to the administration at least one week prior to the intended transaction day. The administration will only process requests that were received on time.
What is the minimum subscription and redemption amount?
The minimum investment amount is 100.000 euros (hundred thousand). The redemption proceeds may not cause the investment amount to be less than 100.000 euros (hundred thousand), excluding value decrease due to the state of market.
What is the minimum redemption amount?
The minimum amount for which units may be redeemed is € 5,000. Fractions of units may be redeemed up to four (4) decimals. Any redemption may not cause the remaining invested amount to be less than € 100,000, as the total invested amount per participant may never be less than € 100,000 (excluding decrease in value due to market price decrease).
Does the fund pay taxes on my behalf?
No, we don’t. Moda Capital is not subject to Dutch corporate income tax, due to tax transparency. Participants/investors are therefore liable for tax on the fund’s income and gains.
Where can I see the current status of my investment?
Participants are offered a personal account after they have successfully registered. This online and private environment is provided by our partner SGG. A user’s personal account provides an overview of the net asset value and unit price per participation. This is updated every week. Additionally, the account also gives access to the fund’s annual report and the user’s personal fiscal overview.
Can I (re)sell or transfer my participation to others?
Units can only be sold back to the fund. A sale or transfer to others is not possible.