Current Epoch vs. Settlement Epoch
Last updated
Last updated
Current Epoch means the period during which the vault collects requests from investors regarding deposit and withdrawal. During this time, investors can submit their intentions to either deposit to additional vault units or withdraw their existing holdings. Once the Current Epoch concludes, the vault processes these requests in accordance with its terms and conditions.
After the Current Epoch ends, a Settlement Period typically begins. During this period, deposits are allocated, and withdrawals are settled based on the vault's net asset value (NAV) as determined at the end of the Current Epoch. The settlement process ensures transparency and fairness for all investors.
The cycle resets, and a new epoch begins, allowing for continuous investor participation while maintaining efficient vault management. This structure ensures that the vault operates in an orderly manner, balancing liquidity for investors with the vault's overall investment strategy."
Settlement Epoch means the period during which the vault calculates the new total assets of the vault, along with all related fees. This process involves determining the vault's updated Net Asset Value (NAV) after factoring in changes such as market fluctuations, new deposits, withdrawals, and applicable fees (e.g., management fees, performance fees, or platform costs).
The vault reconciles its portfolio holdings with market valuations to ensure accurate accounting of its total assets. Deposits amounts collected during the Current Epoch are added to the vault's assets, and withdrawal amounts are deducted. Any applicable fees, including management or performance fees, are calculated and deducted from the vault's assets as per the vault's terms and conditions.
The updated NAV is finalized and shared with investors.
Shares are allocated to new investors based on the calculated NAV.
Withdrawal payments are distributed to investors who requested to exit the vault during the Current Epoch.
It is essential to ensure that all investors receive their corresponding assets before they can realize profits from the traders' activities.
This structure ensures that all transactions are processed fairly and transparently, maintaining the integrity of the vault while providing investors with clear insights into the vault's financial position. After completing the Settlement Epoch, the vault transitions into the next Current Epoch, continuing the operational cycle."
