🏦 Off-chain Subscriptions

An off-chain subscription refers to an investment in the fund where the liquidity doesn't pass through the smart contract. Instead, investors may choose to deposit funds via traditional methods, such as a bank transfer, or other non-blockchain assets (e.g., company shares, or even a Bitcoin transaction). While the investor doesn't need to use the platform to deposit, they can use it to see the payment instructions and monitor their investment's value over time.

The investor still receives tokenized units in a wallet: either their own, or the embedded wallet Fume creates for them.

1. Optional - Add Custom Deposit Coordinates (as a Manager)Copy Anchor Link

As a Manager, you can add your bank details to the platform, so investors know where to send their deposits:

1. Navigate to Settings.
2. Edit the Custom Deposit Coordinates field to add your payment instructions.

Note: Alternatively, you can share the payment instructions directly with the investor outside of the platform.

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2. Create the Investor and Add the Subscription (as a Manager)Copy Anchor Link

This works exactly as for an on-chain subscription:

1. Go to Investors > Holders & invited, click Add Investor, enter their name and email (and wallet, if they have one), and click Create.
2. The panel moves on to the subscription with the investor selected. Choose the class, the agreed amount and the entry fee.

Note: Make sure KYC and due diligence regarding the origin of funds are done on your side. Adding the subscription whitelists the investor for participation in the fund. Be mindful of KYC/AML regulations applicable to your investment vehicle, and consider using a cost-effective solution like AMLBot.

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3. Deposit Liquidity (as the Investor)Copy Anchor Link

Once the subscription is added, the investor receives an email invitation with a link to access the platform:

1. Sign in: Click the sign-in link received via email to access the platform.
2. Open the subscription: Navigate to the Investments tab on the left-side menu.
3. Custom Deposit: The investor sees the payment instructions previously added by the manager.
4. Proceed with Deposit: The investor completes the deposit via their chosen method (e.g., bank transfer).

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4. Confirm the Deposit (as a Manager)Copy Anchor Link

Since the deposit happens off-chain, the manager confirms it on the platform to notify the on-chain fund:

1. Navigate to Investors > Subscriptions.
2. Click Details next to the relevant subscription.
3. Choose Confirm reception of custom deposit and enter the date the liquidity was received.

Once the deposit is confirmed, it shows as a pending subscription under Flows > Inflows. The investor receives their tokenized units at the next NAV calculation.

If the investment does not go ahead after the money arrived, Send Back Custom Subscription records that you returned the liquidity outside the platform and cancels the subscription.

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Considerations: Off-Chain vs. On-Chain SubscriptionsCopy Anchor Link

While off-chain subscriptions offer flexibility for investors using traditional banking or non-blockchain assets, they are generally less efficient and require more manual work compared to automated on-chain subscriptions. We recommend encouraging on-chain subscriptions whenever possible.