FAQ

Funds hosting

An Alternative Investment Fun (AIF) is a privately pooled investment vehicle, which collects funds from investors for investing in accordance with a pre-defined investment policy for the benefit of its investors. Bondkick managed funds are Limited Partnership Funds registered in European Union (Estonia).

A mutual fund is an investment vehicle made up of a pool of money collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and other assets. Mutual funds are operated by professional money managers, who allocate the fund's investments and attempt to produce capital gains and/or income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus.

Read more about mutual fund at Investopedia.

Hedge funds are managed much more aggressively than their mutual fund counterparts. They are able to take speculative positions in derivative securities such as options and have the ability to short sell stocks.

Mutual funds, on the other hand, are not permitted to take these highly leveraged positions and are typically safer as a result.

Read more about the difference between mutual and hedge funds at Investopedia.

A private offering (or private placement) is a capital raising event that involves the sales of securities (real or tokenised assets) solely to qualified investors, or to fewer than 150 persons per member of the European Union, other than qualified investors, or to investors who acquire securities for a total consideration of at least 100 000€ per investor, for each separate offer, or an offer of units with the nominal value of at least 100 000 euros per unit, or an offer of securities with a total consideration of less than 2 500 000€ per all the members of European Union participating in the even in total calculated in a one-year period of the offer of the securities.

A central securities depository (CSD) is a specialist financial organisation holding securities such as shares either in certificated or uncertificated (dematerialised) form so that ownership can be easily transferred through a book entry rather than the transfer of physical certificates.

A CSD is a ledger for traditional regulated non-tokenised securitised assets.

The International Securities Identification Number (ISIN) is a code that uniquely identifies a specific securities issue. The organisation that allocates ISINs in any particular country is the country's respective National Numbering Agency (NNA).

The ISIN code is mandatory for managing regulated securities in CSD. ISIN is not mandatory for tokenised security, which applies an unique address of its Smart Contract instead.

The main and general limitation of any CSD is regional liquidity limitation. Securities registered in one country may be very difficult, expensive or impossible to transfer to a CSD of another country, even though a security is properly registered and has ISIN code. Another important limitation is the cost of securitisation of the assets, which may be too expensive for assets operated by the small and medium businesses.

Blockchain is a great alternative free ledger environment for traditional assets. The tokenised securities may be transferred among investors without an intermediary, any time and immediately. Asset tokenisation is simple and at low-cost comparing to the regular securitisation, but keeping all the benefits of the regular securities, including the voting rights and access to the dividends.

Bondkick uses Ethereum blockchain in combination with Limited Partnership Funds registered in European Union (Estonia).

Bondkick applies to the regime of Estonian limited partnership funds (LPF), enacted with the Investment Funds Act of 14 December 2016 (IFA). The regime has been designed along the lines of the best qualities of limited partnership structures of various countries, which have been traditionally considered as attractive jurisdictions for collective private equity and venture capital investments, such as UK, Luxembourg and Jersey.

A liquid asset is referred yo an asset that can readily be converted into cash or anything similar to cash, with little or zero impact on its value.

An illiquid asset is referred to a security or other asset that cannot easily be sold or exchanged for cash without a substantial loss in value.

Bondkick adds distributive property to the regular securities and makes them available for instant funding and trading both in the decentralised and regular environments.

Yes, Bondkick is a registered Small Fund Manager and offers asset management services to the alternative investment funds, being operated in the Bondkick blockchain environment.

Bondkick alternative investment funds are registered in Estonia (European Union) as Limited Partnership Funds.

Bondkick has created an environment for entrepreneurs and investors to setup alternative investment funds manually. The fund management and investment policies may be setup easily and virtually, the rest is processed and prepared by Bondkick.

Yes, operating any fiat or cryptocurrency is legal. A fund investment policy may state the main currency for the fund to be based on.

Yes, normally every fund has at least one bank account. The access to the bank account and operations with the account are limited to the asset manager (Bondkick).

Yes, if needed, depending on the investment policy, a fund may have a CSD account in Nasdaq OMX Baltic, Euroclear or any other CSD.

The fund has a mandatory investment and management policies, prepared by Bondkick in cooperation with the general partner(s)/fund operator(s) (Bondkick funds customers). The document is signed by the general partner(s) and limits Bondkick, as an asset manager, from some operations or grants it some extra rights instead.