There are two pathways in which users can invest via the Kvants platform: the CeFi or DeFi routes.
The primary difference between the two routes is that the trading is executed on centralized exchanges, in the CeFi route, or Decentralized exchanges via the DeFi route. Both the fund's operations and funds handling are executed via smart contracts, which are fully audited to ensure no counter-party risk of fund mishandling is possible from the Kvants side, utilizing a reputable third-party custodian, Ceffu, for increased investor transparency and confidence.
For users looking to invest in CeFi quantitative strategies based on Centralized Crypto Exchanges, it is done through the subscription NFT Tokenized model, which enables crypto investors to allocate capital through a subscription NFT model.
A $100,000 pool is tokenized in fractional sNFT batches, each NFT representing a fractional value of the $100k pool. E.g. 100 NFTs worth $1000 each. Once the $100k pool is filled, the funds are sent via the smart contract to the Ceffu custodian wallet, which grants Kvants Binance Futures credits that the algorithm starts trading with by syncing the Quantitative strategies API keys to the sub-account. The Kvants team cannot withdraw these funds and only has trading access while the funds are held with the custodian.
After maturity, the Binance credits are redeemed via the custodian and sent back to the funding smart contract, which enables the sNFT holders to withdraw their principal + accrued profits - performance fees.
Kvants charges a performance fee for each of the quant fund pools, which contribute to the revenue of Kvants and are proportionally split between revenue and token buy-backs and liquidity locks to increase the decentralized liquidity pool available to Kvants investors, further supporting the price around its current level.
(Every strategy onboarded is tested with six months of corporate funds before being approved to be listed and serve past data for users.)
If the investors wish to sell their allocation early, they have the option of accessing early liquidity and exiting the positions; they can sell their sNFTs on the Kvants Marketplace for a price that they determine, where other investors can buy their sNFT often to harness an arbitrage opportunity between the sNFTs sale price and the NAV value of the sNFT that can be redeemed upon the maturity date.