Affiliate Fund Creation
3rd-Party Fund Creation
Overview
DEFILP is designed as an open, transparent, on-chain fund management platform. Beyond internal funds managed by the core team, DEFILP enables approved third-party managers to launch and operate their own investment funds on the platform.
This ensures investors have access to a diverse range of strategies while maintaining high standards of security, transparency, and governance.
Third-party funds use the same audited smart contract system, ensuring all deposits, investments, and withdrawals remain fully on-chain and verifiable.
Eligibility and Whitelisting
Only whitelisted managers may deploy third-party funds.
The whitelisting process is governed by DEFILP token holders via on-chain voting. This ensures decentralization, transparency, and community trust.
How Whitelisting Works
Application Submission
Managers submit a proposal describing their strategy, target markets, team experience, proposed fees, and other relevant details.
Review and Community Discussion
Proposals are shared with the community for open discussion.
On-Chain Voting
DEFILP governance token holders vote to approve or reject the proposal.
Voting outcomes are binding.
Access Granted
Approved managers gain permission to deploy new funds via the DEFILP Fund Factory.
⚠️ Only whitelisted addresses can create new funds on-chain. This ensures quality control while enabling an open, competitive environment.
Key Features for Third-Party Funds
Third-party funds enjoy the same robust, decentralized infrastructure as DEFILP’s internal funds. However, managers can customize their funds within certain guidelines:
Custom Fee Structures
Deposit fees (minimum 2%, suggested maximum ~10%).
Performance fees (up to 50%).
DEFILP treasury receives a mandatory 1% from all deposits. "Only on investment deposit
Custom Duration
Must enforce DEFILP’s minimum 6-month lockup.
Recommended lifecycle is 5 years, but managers can define their own timelines, subject to disclosure.
Profit Sharing
Fully customizable between manager and investors via smart contract parameters.
Investor Access
DEFILP’s platform will list all active, whitelisted third-party funds.
Investors can review terms, fees, and strategies before depositing.
Fee Structure (Detailed)
DEFILP enforces a minimum 2% deposit fee on all funds to ensure platform sustainability.
Platform Share: 1% (always goes to DEFILP Treasury).
Manager Share: Remainder of the deposit fee (e.g., if total is 4%, manager keeps 3%).
Performance Fee: 0–50%, set by manager, kept fully by the manager.
Example Fee Configurations
Minimum Fees
2%
1%
1%
0%
Moderate, Recommended
4%
1%
3%
20%
Aggressive High Fee Option
8%
1%
7%
30%
Note: While up to ~10% deposit fee is permitted, very high fees may discourage investor participation. Managers are encouraged to remain competitive.
Fund Lifecycle Requirements
All third-party funds on DEFILP must adhere to the following core lifecycle standards:
1. Raise Period
Typically defined by the manager (recommended 30 days).
During this time, investors can deposit stablecoins.
Funds are locked in the smart contract until the raise ends.
2. Lockup Period
Mandatory minimum 6 months after close of raise.
During lockup, no investor withdrawals are permitted.
Ensures sufficient time for strategy deployment and capital allocation.
3. Post-Lockup Withdrawal
After 6 months, investors can choose to withdraw or remain.
Managers can choose to allow rolling redemptions or periodic windows.
Final withdrawal at fund’s end-of-life cycle is always available.
4. Fund Lifecycle Duration
Recommended duration is 5 years for serious strategies.
Managers define duration when creating the fund.
Lifecycle duration and withdrawal rules are enforced by the smart contract and visible to investors before deposit.
Governance and Transparency
Managers do not have direct access to pooled funds.
Investment moves are executed via smart contract–based allocation proposals.
DEFILP ensures one-account-one-vote investor governance on fund movements.
Platform provides real-time dashboards with fund metrics, holdings, and performance.
All activity is on-chain, auditable, and tamper-resistant.
Investor Protection
Whitelisting by community vote ensures managers have passed a minimum standard of scrutiny.
Enforced smart contract rules prevent rug pulls and unauthorized withdrawals.
Transparent fee structures clearly disclosed before deposit.
On-chain governance ensures investor approval of capital moves.
How to Apply as a 3rd-Party Manager
1️⃣ Review Guidelines
Understand DEFILP’s rules, standards, and smart contract parameters.
2️⃣ Draft a Proposal
Include: strategy details, team background, target raise, proposed fees, risk disclosures.
3️⃣ Submit to Governance
Post proposal via DEFILP’s governance portal.
4️⃣ Community Engagement
Discuss with DEFILP holders, answer questions.
5️⃣ Voting
DEFILP holders vote to whitelist.
6️⃣ Deployment Access
Once approved, deploy funds via DEFILP Fund Factory
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