What is Algorand?
Algorand defines the standard for blockchain technology. Its pure proof-of-stake protocol is the first of its kind to support the scale, open participation, and transaction finality for billions of users. All backed by a sustainable business and a renowned team of experts.
ALGO
TRACKER FUND
The simplest way for institutional and non-crypto qualified investors to invest in blockchain’s most promising digital currency, the Algo, with the assurance of financial protection and trusted custodianship – and no fee.
Blockchain investment has been held back by poor liquidity, market volatility, lack of custody, and considerable downside risk. The Algo Tracker Fund solves these challenges by bringing open-ended and high liquidity to investment in Algo, the digital currency of Algorand. Algorand is the only blockchain technology capable of supporting billions of users and transactions.
BENEFITS
Safely and easily add Algo to your portfolio in a single fund, without having to endure market volatility or complicated custodianship.
Downside PROTECTION
Up to 90% Refund: 7-day money-back window after one year.*
Trusted CUSTODIANSHIP
Backed by Coinbase Custody, the world’s most trusted provider of secure digital asset storage and custody for institutions.
Greater REWARDS
5% Algo rewards on your investment derived from a portion of Algorand’s staking reward.**
NO FEE
All costs to Algo Capital are covered by Algorand’s staking reward.
Download the Algo Tracker Fund deck
Fill out the contact form below for access to the full presentation.
KEY TERMS
Fund Type:
Subscriptions and Redemption:
Minimum Investment:
Fees:
Downside Protection:
Regulated Cayman Islands Fund
Monthly basis
$100,000
0%
Up to 90% after one year
TEAM
PARTNERS
FREQUENTLY ASKED QUESTIONS
What is the difference between participating in an auction directly with the Algorand Foundation and the Tracker Fund participating in an auction?
The Algorand Foundation auction is accessible via Coinlist and is open to the public with certain restrictions, including but not limited to, investor geography. The Algorand Foundation auction is designed primarily for investors with experience investing in digital assets and sophisticated to handle staking and custody by themselves
The Tracker Fund is a simpler way for investors with little to no prior experience investing in digital assets. The Tracker Fund participates in the auctions to purchase Algos on behalf of its investors so that investors do not have to deal with the intricacies of the auction process, staking and custody
Whether Algos are purchased directly from the auction or through the Tracker Fund, investors are afforded downside protection through a refund policy. For more details regarding the refund policy, please refer to the “Refund Policy” section of the Tracker Fund PPM. You can also read about the refund policy on the Algorand Foundation website at https://algorand.foundation/algo-auctions/. However, Algos that are purchased from digital asset exchanges or OTC do not provide investors downside protection through a refund policy.
How does the refund policy work and will I always get 90% downside protection?
The Algorand Foundation offers a refund policy for every Algo that is purchased in one of its auctions. If the Algorand Foundation sells an Algo, then the refund policy allows the Tracker Fund to return the Algo back to the Algorand Foundation during a 7 day window one year later at the following amounts: (i) if the original auction clearing price is $1 or higher, the refund amount will be 90% of the original purchase price and (ii) if the original auction price is below $1, the refund amount will be the original purchase price minus $0.10. Please see the below chart for auction refund policy examples.
Each investor in the Tracker Fund will receive the benefit if the Tracker Fund exercises refund rights with respect to each capital contribution to the Tracker Fund by the investor unless the investor withdraws a portion of the capital contribution prior to the Tracker Fund’s ability to exercise its refund rights. If the refund rights are exercised by the Tracker Fund and the Tracker Fund later obtains additional Algos with the proceeds of the refund, all investors in the Tracker Fund will share equally in the benefit of the refund. For more details regarding the refund policy, please refer to the “Refund Policy” section of the Tracker Fund PPM. You can also read about the refund policy on the Algorand Foundation website at https://algorand.foundation/algo-auctions/.
What is the fee structure for the Tracker Fund?
The Tracker Fund does not charge any management fee or performance fee, and the Tracker Fund will not bear any expenses. The Investment Manager will be compensated by receiving a portion of the Algos awarded to the Tracker Fund for the Fund’s staking activities on the Algorand network (the “Reward”). For the first year, the Investment Manager expects to receive a Reward of 10% of the Algos staked on the Algorand network. A portion of the Reward, expected to be 50% of the Reward, will be allocated to investors as a reward allocation. For more details regarding reward allocations, please refer to the “Reward Allocations” section of the Tracker Fund PPM.
What is the timeline to participate in first auction through the Tracker Fund?
To participate in the first auction that will take place on June 19, 2019, you will need to complete the onboarding process with the Tracker Fund Administrator, Trident Trust, and wire your funds to the Tracker Fund bank account by June 16, 2019. You will become a Limited Partner in the Tracker Fund on the first day of the following month (July 1, 2019) provided your subscription is accepted. As the onboarding process typically takes 2 to 4 business days to complete, we recommend that you start the onboarding process no later than June 12, 2019.
What happens if I can’t participate in the first auction? How can I participate in future auctions?
If for any reason you are not able to invest prior to the first auction, you will automatically be permitted to participate in the following auction and become a Limited Partner in the Tracker Fund after such auction. We expect that the second auction will take place 1 to 4 weeks after the first auction. Alternatively, you also can withdraw your funds if you do not want to participate in the second auction and the Tracker Fund will return your investment amount, at the investor’s option, if the Tracker Fund is unable to participate in an auction in the 30 days following the investment.
The Algorand Foundation will conduct auctions over the next 5 years. The Tracker Fund will generally accept subscriptions on a monthly basis and will purchase Algos in an auction that takes place after the Fund receives funds from prospective investors and the investor will become a Limited Partner in the Fund at the beginning of the following month.
What are the requirements to invest in the Tracker Fund?
For the first auction, the Tracker Fund will be accepting investments from U.S. institutional investors (non-individuals) and non-U.S. institutional and individual investors. All investors need to (i) wire a minimum investment of $100,000 USD to the Tracker Fund bank account and (ii) provide a completed and executed Subscription Agreement and all required KYC and AML information to the Tracker Fund Administrator.
Can I Invest in the Tracker Fund with digital currencies rather than USD?
The Tracker Fund has partnered with Cumberland Mining in order to accommodate those investors that prefer to invest in the Tracker Fund using popular digital currencies (BTC, ETC, USDT, USDC, etc). The investment amount will be accounted in USD according to the exchange terms of the trading with Cumberland Mining.
How is the fund structured?
The fund is structured as a regulated cayman Island limited partnership fund. The fund is administered by Trident Trust (recognized as #1 fund administrator in 2018), audited by Cohen & Company and legal council is Goodwin.
How protective is the downside protection?
Algorand Foundation will keep the money (90% of the Algo price if auction clearing price is above $1 or Algo price minus 10 cents if auction clearing price is less than $1) in USD in a segregated account and audited by Deloitte. So at the one year anniversary they will be able to refund if the fund decides to exercise its refund policy.
Is there a lock-up period? How often can I withdraw?
There is no lock-up period and you can withdraw on a monthly basis. You have the option to withdraw either in USD or Algos, but the Tracker Fund may in its discretion limit withdrawals in Algos. The Tracker Fund also has the ability to limit the amounts withdrawn each month if the Tracker Fund receives significant withdrawal requests for a given month. For more details please refer to the “Withdrawals” section of the Tracker Fund PPM.
Legal Notice
The information on this website is not an offering or the solicitation of an offer to purchase an interest in Algo Tracker Fund LP (the “Fund”). The information is solely to provide an overview of the Fund’s proposed investments. Any such offer or solicitation will only be made to qualified investors by means of a confidential private placement memorandum and related subscription materials which contain significant additional information regarding the terms of the offering (the “Offering Documents”), and only in those jurisdictions where permitted by law. Any decision to invest must be based solely upon the information set forth in the Offering Documents, regardless of any information investors may have been otherwise furnished, including this website.
An investment in any strategy, including the strategy described herein, involves a high degree of risk. There is no guarantee that the investment objective will be achieved. The Fund, and its general partner, are newly formed entities, and each has a limited operating history. All investment involves risk, including the loss of principal. Opportunities for withdrawal, redemption, and transferability of interests are restricted, so investors may not have access to capital when it is needed. There is no secondary market for the interests in the Fund and none is expected to develop. In addition, the description herein of the Fund’ risk management strategies is based on current expectations and should not be considered definitive or a guarantee that such strategies will reduce all risk.
Investment in digital assets is highly volatile, speculative and risky. Digital assets are a relatively new phenomenon and carry a number of specific risks that prospective investors should carefully consider before making an investment in the Fund. Because of the emerging nature of digital asset trading, there is little precedent to operation of investment vehicles such as the Fund, and the General Partner may not have the experience required to effectively manage the investments. Ongoing and future regulatory actions taken by U.S. regulatory agencies may alter, perhaps to a materially adverse extent, the nature of the investments made by the Fund or the ability of the Fund to continue to operate. Additionally, U.S. state and Federal, and foreign regulators and legislatures have taken action against digital asset businesses or enacted restrictive regimes in response to adverse publicity arising from hacks, consumer harm, or criminal activity stemming from virtual currency activity. You must review the private placement memorandum and the risks factors described therein before investing.
The information has been obtained from public sources that Algo Capital Management LLC (the “Investment Manager” or “Algo Capital”) believes to be reliable. The Investment Manager makes no representation as to the accuracy or completeness of such information. This presentation does not purport to be all inclusive nor to contain all the information that a prospective investor could desire when considering investing in the Fund and each potential investor considering an investment in the Fund must conduct and rely on its own evaluation thereof, including the merits and risks involved. Each potential investor should consult its own attorney, business advisor and tax advisor as to legal, business, tax and related matters concerning the information contained herein, as appropriate.