How the App Works
Overview:
Instructions for investing into an asset and redeeming out of a position are below.
How To Invest:
1. Connect your wallet to Fortunafi's Tokenized Asset Protocol app and begin the KYC/AML & Accreditation process. To pass automated screening (e.g., OFAC sanctions), you must provide a government-issued photo ID and other documents (details here).
2. Select a fund to invest in from the Asset selection drop-down.
3. If you've passed the screening, you must review and sign the fund documents (e.g. Limited Partnership Agreement and Subscription Documents). Upon completion, your wallet will be whitelisted to enable your subscriptions and allow you to receive/redeem tokens.
4. To subscribe to a fund, first double-check that you've made the right asset selection and then input into Amount to invest the amount of USDC you'd like to invest.
5. After you've approved the use of USDC, a wallet notification will appear asking you to confirm the transaction. Once approved, USDC will be sent from your whitelisted wallet to the fund’s smart contract, and you will officially be subscribed.
6. Next, a number of steps will take place behind the scenes to ensure your funds are allocated to the fund you've selected, including:
The smart contract will log your subscription request and transfer the USDC to the fund’s account at Coinbase or Circle Custody.
Fortunafi will convert the USDC into USD at Coinbase or Circle, who will then wire the USD via one of their partner banks to the fund’s brokerage accounts to purchase the underlying treasury bills.
Once the fund administrator computes the next daily NAV and your subscription request is accepted, you’ll be issued fBILL or ifBILL tokens representing your shares in the fund.
IMPORTANT NOTE: Fortunafi will purchase more of the same underlying asset with the dividend proceeds when the underlying asset pays out a dividend. The fund does not pay a dividend but accumulates in value as the dividends are reinvested. Investors can schedule auto-selling if they want regular liquidity.
How To Redeem:
1. Connect your wallet to the Fortunafi Tokenized Asset Protocol (TAP) app.
2. Click on the Redeem tab next to the Invest tab and enter in the number of tokens you would like to redeem. Double-check that sure you've selected the right token and network.
3. Submit a redemption request by clicking Redeem shares after you've entered in the number of tokens to redeem.
4. Next, a number of steps will take place behind the scenes to ensure you receive your funds, including:
The fund's underlying smart contract will log your redemption request.
Once the fund administrator computes the next daily NAV and your redemption request is accepted, Fortunafi will sell the underlying asset to cover your redemption (assuming there is insufficient cash from very recent subscriptions to service your redemption).
Fortunafi will wire the resulting USD to Coinbase or Circle, who will convert it to USDC.
Fortunafi will complete the redemption request and distribute the USDC to your wallet, which is expected to take up to 2 business day(s).
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