With significant capital investment expected for SYMM, this could mean the fund's value is sufficient to influence marke
Symmetry
FUND
Whitepaper October 2017
www. sym m e try. f u n d
www.symmetry.fund
1
Introduction Cryptocurrencies like Bitcoin, Ethereum, Ripple, Dash and Litecoin are disrupting how currencies are distributed and held every day. With cryptocurrencies still in the early stages of adoption, it can be difficult for people to understand how to obtain, hold, and trade these currencies on their own. Growing interest from investors about cryptocurrencies is making the possibility of investing in a fund that trades cryptocurrencies extremely appealing. With the ability to invest at a variety of levels, securely store funds, and have input into how a cryptocurrency investment fund is managed, Symmetry Fund (SYMM) is offering investors the opportunity to gain exposure to the cryptocurrency market without the complexities of personally trading it themselves. As in investor in SYMM, you will enter a managed fund that allows you to take part in the moves of the cryptocurrency exchange without the effort and significant capital investment that would otherwise be required when trading individually. Offering a diversified portfolio with market cap above $1B, SYMM has a minimum average volume of $100M in each cryptocurrency it trades including Bitcoin, Ethereum, Dash, Lite Coin and Ripple. SYMM is specifically designed for trading cryptocurrencies and investing in early stage Initial Coin Offerings (ICOs). The fund offers many of the same advantages and protections of a managed mutual fund while providing its investors exposure to the cryptocurrency market.
About Symmetry Fund (SYMM) Part of the Ethereum (ETH) blockchain, SYMM is an ERC20-compliant smart contract. The fund pays monthly dividends in ETH. A single share in the investment fund represents one SYMM token. The investment fund trades and invests in ICOs for cryptocurrencies including Bitcoin, Ethereum, Ripple, Dash and Litecoin. Shareholders will have the ability to trade their tokens with peers based on market rates. This will allow shareholders to cash-out as the fund value increases over time, in conjunction with receiving a monthly ETH dividend. To ensure the whole fund isn’t exposed at any time, SYMM will always hold a percentage of funds in a prudent reserve. Further risk mitigation will also be provided by applying weighted currency and signal risks to each currency in the SYMM investment portfolio (BTC, ETH, XRP, DASH and LTC). When not in a trade, SYMM’s funds will be kept in fiat currencies (USD/EUR) so that the funds are not exposed to the volatility of blockchain assets. Keeping the fund’s exposure to blockchain assets to a minimum reduces the impact that large fluctuations in the value of cryptocurrencies may have on SYMM’s capital value. To monitor the current reserves of the fund and the fund’s value, a self-certification system is included so shareholders can monitor their investment at any time. The fund’s self-certification will occur daily while monthly external audits will be conducted by the Big Four accounting firms. Performing daily selfcertification of funds in conjunction with monthly external audits will ensure transparency and trust between SYMM fund managers and shareholders. Ensuring that investors will have input in the direction of SYMM is also an important part of the fund’s methodology and objectives. Shareholders will be able to vote on any decisions that affect the future direction of SYMM. Shareholder votes will occur on changes and developments such as proportion of the funds invested in ICOs and deciding which pairs will be traded.
2
www.symmetry.fund
Symmetry Fund (SYMM) ICO An unlimited amount of SYMM tokens will be released in the SYMM Initial Coin Offering (ICO). The ICO will be open for a period of 121 days at the exchange rate of 0.1 ETH per SYMM. One SYMM token will represent a single share in the fund. From the ICO, most of the funds raised will be used for trading purposes. A small percentage of funds raised (up to 10%) will be held by the fund for prudent reserves and administration. Holding back these funds forms part of SYMM’s risk mitigation measures. An unlimited number of SYMM tokens will be available for purchase at a rate of 0.1 ETH per SYMM during the ICO. By sending Ethereum to the ICO smart contract address, investors will be able to purchase SYMM tokens. After sending the ETH to the address, the investor’s account will be credited with the corresponding amount of SYMM shares. There is no limit on the amount of times investors can purchase SYMM tokens throughout the ICO.
There are no discounts available on pre-ICO, pre-sale or during public sale. The price for 1 SYMM remains the same - @0.1 ETH.
There will be at least two rounds of the ICO: 1.
Round One starts on December 10th, 2017, and continues until February 10th, 2018.
2.
Round Two starts on February 11th, 2018, and continues until April 10th, 2018.
There will be 2 classes of shares: Round One – the same management fee, only Class A shares available.
Class A For any investments over 0.1 ETH, SYMM shares will have 7.5% management fee. (Class A)
Round Two – different management fee for shares Class A and Class B.
Class A For investments over 100 ETH, SYMM shares will have 7.5% management fee. (Class A)
www.symmetry.fund
Class B For investments under 100 ETH, SYMM shares will have 15% management fee. (Class B)
3
Moving from ICO to the Trading Phase The rounds of ICO will close manually at the end of the relevant period of the ICO round. The ICO can be closed by a nominated administrator account. After closure of the ICO, the funds will be withdrawn from the contract and exchanged to fiat currencies. To ensure that SYMM does not have an adverse impact in the markets that it will trade in, withdrawals from the ICO phase will be completed over a period of days or weeks. The withdrawals will be completed on a range of different exchanges to further mitigate potential market impacts. As the funds are being withdrawn from the contracts and exchanged to fiat currencies, the fund’s balances will be published and announced on the blockchain. Trading will commence as soon as initial withdrawals have been made from the contracts. SYMM has a long-term vision and interest in the stability of cryptocurrencies and will not partake in any activities that could jeopardize the longevity and future growth of cryptocurrencies. The starting value of the SYMM fund will be the USD-equivalent of the exchange rates of Ethereum withdrawn from the fund when the ICO closes. The fund will move into the trading phase when the ICO has been successfully completed. In the trading phase, SYMM will be transferred between investors, dividend payments will occur and contract audits will take place utilizing the token contract. The SYMM ICO opens on December 10th, 2017, and closes on April 10th, 2018. You will need Ethereum to invest in SYMM Tokens.
Summary of the SYMM ICO ☑ One SYMM share is equal to one ERC-20 compliant token. ☑ The initial duration of the ICO is 121 days from December 10 , 2017, to April 10 , 2018. ☑ During the ICO, 1 SYMM share will cost 0.1 ETH. ☑ The ICO Soft Cap is 3,000 ETH. ☑ There is no Hard Cap for the ICO. ☑ Trades in BTC, LTC, DASH, ETH and XRP will be conducted using 70% of the fund’s capital. ☑ 20% of the fund will invest in high potential ICOs. SYMM will secure a deep discount (up to 50%) on th
th
ICOs that have not yet been released for public sale.
☑
10% of the fund will be held by the fund in a reserve to ensure that the whole fund is never exposed at any point in time.
☑
50% of monthly trading profits will be paid in dividends to investors each month. Dividends will be paid in ETH.
☑ 50% of monthly trading profits will be held for compounding growth. ☑ To reduce risk and ensure stability of the fund’s value, SYMM funds will be held in USD and EUR. ☑ Risk mitigation strategies will be established. ☑ Management fees will not be charged if there are no profits. ☑ Based on Symmetry scenarios and fund projection, the estimated annual ROI for SYMM investors is expected to be more than 50%.
☑
All shareholders will have the opportunity to vote on major fund decisions, further fostering trust and transparency between the fund and its shareholders.
☑ 4
All trades that SYMM execute will be detailed on the relevant exchanges. www.symmetry.fund
☑ Funds held by SYMM will be subject to external auditing each month. ☑ Accounts balances and SYMM fund value will be reported to shareholders daily. ☑ Until SYMM is listed on major exchanges, all shareholders will have the ability to sell their investment for instant liquidity.
New coins are usually listed on exchanges and secure sufficient liquidity in 1 to 3 months. Investors will have a buyback option during this period, or until SYMM is listed on one of the biggest exchanges.
The Trading Phase After the ICO successfully closes and funds are withdrawn from the ICO, the trading phase will commence. The trading phase will continue indefinitely with changes in trading activities such as pairs traded and fund allocation to be voted on by shareholders. At the commencement of the trading phase, the capital value of SYMM will come from 90% of the capital raised in the ICO. This capital will be converted into fiat currencies and quoted in USD. Operating and management costs will be covered with the remaining 10% of the funds raised in the ICO. Over the course of trading, operation and management costs will be returned to investors. A management fee will not be charged to SYMM investors until this 10% operation and management allocation is paid back. SYMM’s capital will be split into 3 components:
PORTFOLIO 10%
70%
Cryptocurrency trading
20%
ICO investments
10%
Fund reserve
20%
70%
www.symmetry.fund
5
Risk Management in Trading Risk will be proactively managed by SYMM. A key strategy SYMM will employ to mitigate risk is storing SYMM’s capital in fiat currencies when not engaged in a trade. SYMM funds will only be held in cryptocurrencies throughout the duration of trades. Holding funds in fiat currencies means the value of the fund will experience consistent growth without being constantly exposed to the, often volatile, fluctuations of cryptocurrencies. A percentage of the actively traded funds will be allocated against each cryptocurrency when trading. Allocation of funds across traded cryptocurrencies will be determined based on stability and risk in that cryptocurrency. Specific signal risks for each cryptocurrency will also be used to determine fund allocation and balance risk. This is similar to the way mutual funds balance risk in non-cryptocurrency funds. Additional risk-mitigation strategies that will be implemented include:
1
Additional risk-mitigation strategies
Diversifying investments between exchanges
2 Capping leverage at 5x (normally none) for high-certainty trades
3 And trading in Monday to Friday market hours only
With significant capital investment expected for SYMM, this could mean the fund’s value is sufficient to influence market direction. To mitigate the risk of SYMM’s funds influencing marketing direction, the fund will spread its trading across multiple exchanges. This will prevent market demand from reducing or increasing beyond its natural levels as a result of SYMM’s trading activities. To keep funds under the tolerated risk level, margin may be used so that less funds are exposed at the time of trade. With a trading strategy designed for a few select actions each day, this methodical and conservative approach will support the long-term growth of the fund’s value and investor returns. At launch of the trading phase, SYMM will be trading a selection of pairs that it believes to hold significant data on. Analyzing this data, in conjunction with the fund’s conservative approach will allow reliable, low-risk trades to be executed. Over time, expansion to different cryptocurrencies may occur based on fund growth and risk analysis. Expansion of the fund to other cryptocurrencies and markets will be put to a shareholder vote. Shareholder votes will be performed via smart contract on the blockchain.
6
www.symmetry.fund
Dividends When SYMM makes a monthly profit, dividends will be paid to shareholders in ETH via a smart contract on the 3rd day of the month. Dividends will be immediately available to SYMM investors when the payment is sent to the dividend contract. Investors can then withdraw funds at a time of their choosing. Profits are determined by subtracting the amount the fund was worth at the end of the previous month from what the fund is worth at the start of the current month, less management fees if applicable. No management fees will be charged when there is no profit. Management fees are (i) 7.5% of profit for Class A and Class B shares bought during the first round of ICO, and (ii) 7.5% of profit for Class A shares and 15% of profit for Class B shares bought during the second round of ICO. Management fees will not commence until the 10% of operating costs subtracted from the ICO is repaid to investors.
Example If SYMM makes $100,000 profit this month, SYMM would deduct the Class A and Class B fee accordingly. Let’s assume $60,000 is subject to 7.5% fee of $4,500 and $40,000 is subject to 15% fee of $6,000. $60,000 - $4,500 = $55,500 Class A profit. $40,000 - $6,000 = $34,000 Class B profit $55,500 + $34,000 = $89,500 total fund profit $89,500/2 = $44,750 $44,750 to be compounded
From the total amount of monthly profit, 50% will be held in the fund for compounding growth, while the other 50% will be distributed to investors. This will provide shareholder value in the form of regular dividend payments and compounding growth of your investment.
The percentage of profit to be held and compounded is subject to shareholder voting every 3 months.
It will be possible for shareholders to trade SYMM with other investors in the Ethereum network. SYMM investors will be free to trade their shares on an exchange of their choice. This allows investors to sell all or part of their SYMM shares for instant liquidity.
Shareholder Voting Giving all shareholders the opportunity to vote on major decisions in the SYMM fund is a cornerstone of the trust and transparency measures that will be established in the fund. Matters that may be subject to a shareholder vote include trading patterns, capital raising for further investments, or exit route options for investors. Voting will take place on the blockchain with each SYMM share counting as a single vote. The majority of SYMM shareholders will need to take part in a vote for decisions to be carried out. With all votes cast and stored on the blockchain, the outcomes of each vote will be visible to shareholders at any time.
Class A and Class B shares have equal voting rights. www.symmetry.fund
7
Technology As a technology company, SYMM offers individuals the opportunity to gain exposure to the cryptocurrency market without the complexities of managing their own trades and associated technology. Embedded in the ETH blockchain, SYMM is an ERC20-compliant token. It is embedded in the ETH blockchain as a smart contract. Other financial functions of SYMM will also be supported by contracts on the blockchain including management of the ICO, dividend payments, transparency measures, and voting. There are several smart contracts that will operate throughout different phases in the SYMM fund from the ICO phase to the trading phase. These contracts deal with different parts of the fund. For example, when an investor purchases SYMM shares in exchange for tokens in the ICO phase, the contracts will execute the action of providing SYMM shares in exchange for tokens. If the ICO phase does not meet its minimum investment requirement, the smart contracts can be used to wind down the ICO and return funds to investors. If, however, the ICO is successful, a smart contract will be used to commence trading by withdrawing ETH from the blockchain. During the trading phase, the contracts contain the ability for investors to:
Trade by transferring SYMM shares between peers or other exchanges; Participate in shareholder votes.
Collect dividend payments;
At any moment in time, check the fund’s reserves and market value;
01 02 04
03
8
www.symmetry.fund
Trust and Risk Mitigation Trust and risk concerns are natural for investors to have when new offerings hit the market. With cryptocurrencies and blockchain, however, increased trust and risk concerns can arise as a result of the additional anonymity and privacy provided by blockchain technologies. SYMM understands investors may have trust and risk concerns so the fund is addressing these concerns by establishing risk mitigation measures. This will ensure that risk is managed by the fund while delivering transparency and value to shareholders. The SYMM fund is for shareholders and it invites any suggestions for further transparency measures that will continue to foster trust and strong relationships with our shareholders. SYMM will establish key strategies to reduce risk, ensure transparency and deliver value for shareholders. These strategies include:
☑
At the ICO stage, funds will be returned to investors if the soft cap of 3,000 ETH is not reached. This will be done through contracts on the blockchain.
☑ Establishing measures to prevent devaluation of ETH. ☑ Reducing the risk and volatility that funds exposed to cryptocurrencies often experience by storing trading funds in fiat currencies when the funds are not engaged in a trade.
☑ ☑
Fiat currencies will be stored in bank accounts. If needed, currency amounts may be kept in exchanges for short periods to ensure funds are readily available for trading. SYMM will only operate on exchanges such as Kraken, Poloniex and Bitstamp. These are exchanges that are regulated or have proof of reserves.
☑ SYMM will not operate on exchanges that are unregulated or do not have proof of reserves. ☑ Market impact by SYMM will be reduced by trading across exchanges. ☑ When a high certainty trade is entered by SYMM, up to 5x leverage may be used. Leverage will only be used where appropriate and the risk and market impact has been analyzed and deemed suitable for the fund and its investors.
☑ ☑ ☑ ☑ ☑
There will be a maximum percentage of the fund that can be exposed at any one time. This will be determined through establishing a risk weighting system for each currency. The risk weighting will determine the maximum amount of the fund’s capital that can be exposed to each currency at any one time. SYMM is built on the experience of industry professionals. The use of artificial intelligence in the fund will be used only to add more value to the analysis already performed by our fund managers. With the establishment of a prudent reserve fund, this means that the entirety of SYMM’s capital is never exposed at any point. Trades will be executed in regular market hours to reduce the risk of losses due to lack of liquidity in the market. An asset management company will be established in the Cayman Islands. It will be operational by March 2018.
www.symmetry.fund
9
The graphic below details how information flow at SYMM will be structured.
EU Bank
Ploniex API
Monthly Statements
Kraken API
Monthly Trading Statements
Independent Auditor Audited by one of the Big Four
Available on the website for public
E-mail to SYMM investor Figure 2: SYMM's information flow
Other measures that will be taken by SYMM to support and strengthen transparency include:
☑ ☑ ☑
10
Sharing the public details of SYMM and its founders to ensure investors have all the information they need to make a sound investment decision. Providing the personal details of SYMM’s founders to allow stakeholders to contact them with any questions or concerns. When cryptocurrency accounts are being used for holding balances for trades or deposit to exchanges, the details of these accounts will be published on the blockchain for investors to view at any time.
www.symmetry.fund
☑ ☑
Where an exchange permits, read-only API keys for account balances will be provided for investors so they can view the fund’s balances directly. When a read-only API key cannot be provided by an exchange, account balances will be published on the blockchain and SYMM website so investors can view transaction details and balances at any time. Investors will be provided with an externally audited bank account each month. This will give investors the ability to cross reference the audited documents with the balances that are published on the blockchain throughout the month.
SYMM is focused on ensuring transparency, mitigating risk and delivering value to shareholders. The fund will revisit and review its risk mitigation strategies on a regular basis and can answer any questions that investors may have. Questions and queries can be answered through direct contact with the fund’s managers or by directing investors to the appropriate documents and blockchain entries where information is stored.
The Future of SYMM Other base currencies and trading pairs will be launched by SYMM as the fund becomes more established and the trading phase of this initial ICO has matured. The aim of SYMM is to be able to provide a variety of risk levels for investors so there is a solution for every investor interested in having exposure to cryptocurrencies. As we launch new investment opportunities, and expand the fund, SYMM will investigate how it can provide current investors with special offers and benefits for new offerings.
Disclaimer The information set forth below may not be exhaustive and does not imply any elements of a contractual relationship. While we make every effort to ensure that any material in this white paper is accurate and up to date, such material in no way constitutes the provision of professional advice. Symmetry Fund does not guarantee, and accepts no legal liability whatsoever arising from or connected to, the accuracy, reliability, currency, or completeness of any material contained in this white paper. Investors and potential SYMM tokenholders should seek appropriate independent professional advice prior to relying on, or entering into any commitment or transaction based on, material published in this white paper, which material is purely published for reference purposes alone. Symmetry Fund does not provide any opinion on any advice to purchase, sell, or otherwise transact with SYMM tokens and the fact of presentation of this white paper shall not form the basis of, or be relied upon in connection with, any contract or investment decision. No person is bound to enter into any contract or binding legal commitment in relation to the sale and purchase of SYMM tokens, and no cryptocurrency or other form of payment is to be accepted on the basis of this white paper.
Important You are not eligible and you are not to purchase any SYMM tokens if you are a citizen or resident (tax or otherwise) of Singapore, or other Singapore Person. “Singapore Person” is generally defined as a natural person, residing in the Singapore or any entity organized or incorporated under the laws of Singapore. Furthermore because of current regulatory uncertainty and before additional information is publicly released by the Platform on the matter, green card holders of the United States or citizens or residents (tax or otherwise) of the United States of America, Singapore are not eligible to register as SYMM investors. That limits the ability of U.S. and Singapore to utilize SYMM tokens and participate in the future development of the Platform as well as in the distribution of proceeds.
www.symmetry.fund
11
[email protected]
SYMMETRYFUND © 2017. All Right Reserved.
www.symmetry.fund
