This tutorial will guide you through the process of using Furucombo Funds to allow fund managers to help you manage your wealth!
Furucombo is excited to announce our much-anticipated fund management system! Furucombo Funds allows anyone to become a fund manager which allows experts to manage deposits from investors to maximize their return on investment using the magic of Furucombo. Additionally, fund managers have the opportunity to earn performance fees for earning a profit from the depositors. The initial set of fund managers will be whitelisted, and vetted by the Furucombo team in order to ensure stability of the system.
To learn more about how to use Furucombo Invest, including how to make a deposit, and how to determine the details of a fund, follow the steps below.
1On the furucombo.app webpage, simply click ‘Invest Mode’ to get started
2From here, you’ll want to sort the investment opportunities by ‘Funds’ by clicking the icon at the top
The investment opportunities will then be listed below. You can choose to sort these by performance (return on investment), or by AUM (assets under management). Typically the fund with the highest AUM will be the least risky because it will likely contain more stable assets, have less manager risk, or have a lower risk of liquidation - but we will go into more detail on important things to remember when investing in a fund later in this guide.
3When you find a fund you are interested in, simply click the fund to make a deposit. Ensure that your wallet is connected otherwise you will receive the message ‘Please connect wallet first’.
4On the right hand side of the pop up screen, you will see a deposit or withdraw section. From here you can add $USDC to the fund. If you do not have USDC, you can swap any of your tokens using create mode to $USDC so you are able to deposit into the fund.
5Once you are ready to make a deposit, and you have $USDC in your wallet, simply click the ‘approve’ button to approve the use of $USDC, and then click ‘send’ to complete the transaction.
Once deposited, you will see your deposits on the top of the page above the other Funds under the category labeled ‘Your Investments’. It’s as easy as that to invest in a fund.
One important thing to check before investing in a fund, are the details behind it and the details of the fund manager. You will want to make sure that the fund manager is reputable, and that the fund investments are within your risk tolerance. Some funds will have riskier assets than others. Additionally, some fund managers have different management or performance fees. This fees will reduce the opportunity to get a higher return on investment and also must be considered.
To check the funds details, simply goto the fund that you are interested in learning more about, and click it from the investment page as shown in step 3 above. Once you’re on the fund deposit page, click the ‘Fund Detail’ link to show more details about the fund. After you click the fund details, you’ll be displayed with the following interface.
The details page shows you the following information:
Symbol beside fund name: This shows if the fund is within its operating status, if it is in insufficient liquidity mode, or if it is closed. A green symbol means it’s within operating status, and a red symbol means it is in insufficient liquidity mode. Be weary of investing in funds that have insufficient liquidity as they may be closed. Additionally, providing liquidity in funds that are in insufficient liquidity mode may be given a deposit bonus of 1 percent.
Overview: The overview of the fund shows the share price, and displays a graph of the performance of share price over intervals of 1 day, 7 days, or 1 month. The share price is determined by the performance of the fund.
AUM: Shows assets under management of this fund.
Reserves: The amount an investor can cash out immediately. If the amount requested to be cashed out is higher than the reserves, they must wait at most 72 hours for more liquidity to be added to the reserves. An investor requesting more than the reserve amount may be charged a 1 percent fee. The fund manager can set the reserve ratio at the time of the creation of the fund.
Status: There are 4 status options: operating, insufficient, liquidating, closed.
- Operating: means the cash balance is positive.
- Insufficient: means the cash balance is negative.
- Liquidating: means that the cash balance has been negative for more than 72 hours, so the fund will be liquidated for all the depositors to withdraw.
- Closed: means that the fund is no longer in operation, and its depositors can withdraw the position.
Activeness: Is the ratio to show if the fund manager has kept a positive cash balance for the past 30 days. Example: if the ratio is 100%, it means that the fund has kept a positive cash balance for the complete duration within the last 30 days.
Investors: The amount of unique wallet addresses invested in the fund.
Portfolio: Shows the assets that are within the fund. Additionally, this area shows you the percentage invested in that asset, the 24 hour performance, the 7 day performance, the amount of those tokens held, and the value of those tokens.
About — Information: This section shows you information about the fund, such as:
- Inception Date: Date the fund was created.
- Management Fee: This fee is a fee that is paid upon depositing or withdrawing from a fund. This fee is pro-rata, and is annualized. For example, a 10% management fee is based on being in the fund for 365 days. If you are in a fund with a 10% management fee for 36.5 days, the management fee would be 1%. This fee would be settled upon deposit, withdrawal from the fund, or upon the fund managers request.
- Performance Fee: This fee is the fee that a fund manager can collect from a positive ROI on their fund. If the performance fee is set to 3%, they will collect 3% of the profits as a performance fee.
- Manager Address
- Fund Address
- Share Address
- Asset Address
- Comptroller Address
About — Investors: This section shows the addresses that have invested in the fund, the share token amount in the fund, and the percentage of each of the addresses in the total value of the fund.
- About — Deposits: This section shows the date an investor made a deposit into the fund, the investor address, the transaction hash of the deposit in the fund, the share token amount in the fund, the total amount deposited in $USDC, and the action taken (deposit or withdraw).
- Strategy — History: Shows the history of the trades made by the fund manager.
Furucombo will also charge the fund a 0.2% fund fee on each of the transactions performed by the fund manager based on the AUM. For example, if a fund manager performs a swap, and has $10,000 AUM, a 0.2% fee on the $10k AUM will be charged for performing that swap. The fee does not apply to the volume of the transaction.
These are the details on Furucombo’s fund system. This guide will give you the information you need to know in order to invest.