🏦 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 receive bank details and monitor their investment's value over time.

1. Optional - Add Bank Coordinates (as a Manager)

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

1. Navigate to Settings.
2. Edit the "Bank Deposit Coordinates" field to add your bank instructions.

Note: Alternatively, you can choose to share the bank deposit instructions directly with the investor outside of the platform.

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2. Invite Investor (as a Manager)

To register the off-chain investment, the fund manager must invite the investor to the platform:

1. Navigate to the Investors section, click Invite Investor, and select Off-Chain Investment.

2. Fill in the required information:

   • Name: This will appear in the share registrar.
   • Email: The email where the investor will receive the invitation.

   Note: Make sure KYC and due diligence regarding the origin of funds are done on your side. This action 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)

Once invited by the manager, the investor will receive 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. View Investment Details: Navigate to the "Investments" tab on the left-side menu.
3. Deposit Instructions: Under the "Details" section of the investment, the investor will see the deposit instructions previously added by the manager.
4. Proceed with Deposit: The investor follows the instructions to complete the deposit via their chosen method (e.g., bank transfer).

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4. Confirm Deposit (as a Manager)

Since the deposit happens off-chain, it is necessary for the manager to confirm the deposit on the platform to notify the on-chain fund:

1. Navigate to the "Investors > Subscriptions" tab.
2. Click "Details" next to the relevant investor.
3. Confirm the deposit: Enter the date and exact amount received by the fund.

Once the deposit is confirmed, you will see it registered as a pending subscription under the "Inflows" section. The investor will receive their tokenized units during the next NAV calculation event.

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Considerations: Off-Chain vs. On-Chain Subscriptions

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.