Creating a fund

Once successfully onboarded, a portfolio manager can launch a new vault.

PMs can easily create a portfolio by clicking "Create New Portfolio".

The FXYield Solutions app walks PMs through the vault creation process, as shown in the demo below:

Vault creation parameters and details

In vault creation, PMs are able to configure the following settings:

  • Capital formation rules

    • During the Capital Formation period, lenders can commit funds with assurance that the smart contract will return funds (with no fees) if certain requirements are not satisfied. For more details

      • Example: PM configures a 30 day capital formation period and minimum vault size of 1M USDC. If the fund has not raised ≥1M USDC by day 30, then principal will be returned to lenders with no fees taken. If the fund raises ≥1M USDC within 30 days, then the PM can move the vault to 'Live' status and deploy loans from the vault.

  • Tranche configurations

    • Unitranche / 2 tranches / 3 tranches

    • Minimum subordination ratios for each tranche

    • For more details on tranche mechanics.

  • Vault duration / maturity date

    • Lender funds will be locked up until the vault's maturity date

    • All loans within the vault must mature before, or on the maturity date

  • Fee structure

    • Vault fee: in basis points, on annualized basis

  • Lender permissions / restrictions

    • i.e. manager can require KYC or set custom list of allowed lenders

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