Fund Details
tfBILL is an on-chain representation of investors' LP interest in ADAPT I LP. The Tokens follow the ERC-20 token standard, which, together with the Fund’s integration with the programmatic smart contract interface developed and maintained by TrueFi, with frontend interfaces for user interaction provided by Archblock. The smart contract interface follows the ERC 4626 tokenized vault standard, will ensure that every transaction and investment in U.S. Treasury Bills is recorded on-chain, providing an auditable, immutable ledger that investors may access 24/7.
ADAPT I LP ("the Fund") is structured to offer on-chain investors a direct avenue to invest in Short-Term US Treasuries using their USDC stablecoins. The fund follows a standard structure with independent third parties ensuring the smooth operation and security of assets.
Key Terms & Involved Parties
ADAPT I LP ("The Fund"): The British Virgin Islands limited partnership where investors contribute capital. This entity also holds the underlying assets, such as the Short-Term US Treasuries. ADAPT I LP is wholly owned by the holders of tfBILL.
tfBILL Tokens: Tokens representing Limited Partner ownership in The Fund. These tokens are a direct representation of the investor's LP stake in the fund. tfBILL holders are the sole beneficiaries of ADAPT I LP.
Adapt3r Digital LLC: The general partner (GP) of The Fund.
Adapt3r Advisors: The investment manager who, in collaboration with the GP, provides management services for the fund.
Archblock: The decentralized alternatives marketplace built on TrueFi's open, transparent and immutable financial infrastructure where ADAPT I LP is offered. Archblock also facilitates the KYC/AML and onboarding process for new investors in ADAPT I LP and hosts the website where investors manage subscriptions, redemptions, and all other capital activity related to their investment in The Fund. Learn more about Archblock here.
TrueFi: The open, transparent, and immutable financial infrastructure on which ADAPT I LP is offered and Archblock is built. Learn more about TrueFi here.
Asset Vaults: TrueFi vaults that facilitate off-chain credit, or "Real World Asset" (RWA), activity. Learn more about TrueFi Asset Vaults here.
Regulated Broker Dealer: The securities brokerage and qualified custodian responsible for holding off-chain assets and executing trade orders for the fund.
NAV Consulting: The independent fund administrator responsible for accounting and reporting, including calculating daily Net Asset Values.
Investor Workflows & Flow of Funds
The workflows described below assume an investor wishes to contribute stablecoins, but fiat is also supported.
Subscription
The subscription process for investors coming into ADAPT I LP is managed by TrueFi smart contracts that investors conveniently interact with through the Archblock online marketplace at app.archblock.com.
KYC/AML Process: Visit app.archblock.com to undergo the KYC/AML verification process. You will be required to provide specific documents, such as a government-issued photo ID, and undergo screenings, including OFAC sanctions checks.
Fund Documents: Review and sign the necessary fund documents, including the Limited Partnership Agreement and Subscription Documents.
Ethereum Wallet Address: Provide an Ethereum wallet address for whitelisting purposes. This address will be used for subscriptions, receiving tfBILL tokens, and future redemptions.
Subscription Transfer: Once your wallet is connected to the Archblock marketplace, transfer USDC to the fund’s smart contract by following the instructions on the website.
USDC Transfer: Upon a successful transaction, the smart contract will immediately log your subscription request and transfer the USDC to the fund’s designated crypto custodian account.
USD Conversion: The investment manager will convert the USDC into USD using a prime broker. The converted USD will then be internally transferred to the fund’s cash account at the designated broker.
Token Issuance: After the daily NAV is computed and your subscription request is approved, tfBILL tokens will be minted into your wallet, representing your shares in the fund. Interest will begin accruing once tfBILL tokens have been minted.
Short-Term US Treasuries Purchase: The investment manager will utilize the USD to acquire Short-Term US Treasuries.
Redemption
Like the subscription process, redemptions are also managed by TrueFi smart contracts that investors conveniently interact with through the Archblock online marketplace at app.archblock.com.
Redemption Request: With your wallet connected to Archblock's website, initiate the process by requesting a redemption on the front end by sending tfBILL tokens to the fund’s smart contract.
Request Logging: The smart contract will log your redemption request for further processing.
NAV Computation: After the daily NAV is computed and your redemption request is approved, the investment manager will attempt to meet the redemption instantly with any liquid cash or stablecoin balances currently held by the Fund. If additional funds are needed to meet liquidity requirements, the Fund will liquidate the necessary amount of Short-Term US Treasuries to fulfill your redemption.
USD Conversion: The designated securities brokerage will transfer the resulting USD to the designated custodian, where it will be converted into USDC.
USDC Distribution: The investment manager will finalize the redemption process, and the converted USDC will be transferred to your wallet.
Last updated