Closed-end Fund Flowchart

Closed-end products are more suitable for complex investment logic and strategies. The Closed-end Fund is divided into three steps that include fundraising, operation, and settlement, with three distinct roles (Investor, Fund Manager, and Fundraising Partner). Each of these roles has different rights at different stages.

Fundraising Period: Users can issue fund shares during the fundraising period, but once issued, they can only be withdrawn at the end of the operation period. Fund managers receive issue fees for issuing funds into their portfolios. Fundraising partners can also participate in a referral program to help the Fund Manager reach the fundraising goal. In return, partners will be rewarded by smart contract-based commission.

Operational Period: Once the fundraising goal is achieved, the fund manager should end the fundraising and proceed to the operational phase. During this period, users cannot issue or redeem fund shares, and fundraising partners can no longer promote referral programs. However, the commission system will remain active for fundraising partners. It is important to note that the fund manager can only rebase the fund's position and cannot transfer or withdraw any assets.

Settlement Period: Following the end of the operational period and the beginning of settlement, users can withdraw their fund shares with principal and interest during this stage. After the withdrawal, the protocol will distribute the redemption fee among fundraising partners and funding managers according to the smart contract set ratio.