Frequently Asked Questions

FAQ about LibertyRoad Capital

What is LibertyRoad Capital?

LibertyRoad enables investors to access yield enhancement solutions. Whether it is about diversifying the portfolio to gain exposure to digital assets or existing BTC and ETH holdings, we offer a solid investment products range. Founded in 2019, LibertyRoad has a proven track record and unrivalled expertise in derivatives trading. Investors, advisors, and allocators turn to LibertyRoad to capitalise on market inefficiencies, especially in trading volatility.

How do I invest in LibertyRoad Capital?

There are two ways to access our products: through a Managed Account or the GDA Master Fund, a pooled investment vehicle. The GDA Mater Fund SPC is an exempted segregated portfolio company incorporated with limited liability under the Companies Act on April 6th 2022 and registered with CIMA (Cayman Islands Monetary Authority).

Who is the custodian of the assets? How are the digital assets underlying each Product's shares safeguarded?

The clients’ assets, whether under a Managed account or invested in the GDA fund, will be held with Copper, the world’s biggest digital asset custodian, and will be traded on relevant exchanges such as Deribit or CME.

All Product’s assets are stored in offline storage, or ‘cold’ storage, with Copper Technologies (Switzerland) AG, as (the “Custodian”). The Custodian has a fiduciary licence under the Swiss Financial Services Standard Association (VQF), the largest and oldest cross-industry Self-Regulatory Organisation (SRO) in Switzerland and is authorised by the Financial Market Supervisory Authority (FINMA).

How do clients onboard with the custodian or exchange?

The onboarding process is straightforward and requires a standard KYC/AML process with the platforms. Once the necessary information has been provided and, the accounts are approved, the funds are ready to be traded.

What are the product fees?

LibertyRoad Capital charges an annual management fee and a performance fee. The management fees include the costs associated with administration and safekeeping. They are calculated based on the total amount of tokens underlying in the notional and accrues monthly.

The ratio of digital asset(s) to shares will decay because of this management fee over the course of a year. We expect this fee to be the only ordinary recurring expense for each Product. For further details on each Product’s fees, please review each Offered Product’s Private Placement Memorandum or each Product’s annual and quarterly reports, as applicable.

Who calculates your fund’s returns? How often?

The fund administrator, NAV consulting, is responsible for calculating the fund’s returns. On top of that, the in-house developed UI system allows investors under managed accounts to log in and see the real-time daily performance. Sign up for the monthly newsletter to gain access to more information and updates regarding the returns.

What are LRC data backup and disaster recovery plans? How quickly could you get back into the business if your building shut down?

LRC operations are cloud-based, using Amazon’s AWS as the primary cloud and Microsoft’s Azure as the backup cloud. Within AWS, we utilise two data centres to provide fault tolerance should one data centre become unavailable. Data backups are taken daily at 23:00 UTC and restored into our failure-over environment.

Are you registered with the Securities and Exchange Commission? With the Commodity Futures Trading Commission? Why or why not?

The funds activities fall under the exemptions from CPO & CTA registration under Rule 4.7. paragraph (d). This refers to applicable provisions (sales to QEPs) from certain part 4 requirements for commodity pool operators, with respect to offerings to qualified eligible persons and for commodity trading advisors with respect to advising qualified eligible persons.

What are the risks of investing in a Product?

Investments in Products are speculative investments that involve high degrees of risk, including loss of invested funds. LibertyRoad’s Products are not suitable for any investor that cannot afford the loss of the entire investment. Carefully consider each Product’s investment objectives, risk factors, fees and expenses before investing. This and all other information can be found in each Product’s private placement memorandum or the Investment Mandate Agreement, which may be obtained from LibertyRoad. Read these documents carefully before investing.

What is an accredited investor?

Only accredited investors are eligible to invest in the Offered Products. An accredited investor includes:

  • Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; or
  • Any natural person whose individual net worth, or joint net worth with that person’s spouse, exceeds $1,000,000 (excluding the value of the person’s primary residence and certain indebtedness secured by such person’s primary residence).
  • Individual investors who hold, in good standing, certain professional certifications and designations and other credentials designated by the Commission as qualifying for accredited investor status. The Commission designated three certifications and designations administered by the Financial Industry Regulatory Authority, Inc. as qualifying for accredited investor status:
    • Licensed General Securities Representative (Series 7);
    • Licensed Investment Adviser Representative (Series 65); and
    • Licensed Private Securities Offerings Representative (Series 82)

In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:

  • Any trust, with total assets in excess of $5 million, not formed for the specific purpose of acquiring shares of an Offered Product, whose purchase is directed by a sophisticated person; or
  • Any entity in which all of the equity owners are accredited investors.

For this purpose, a sophisticated person means a person who has sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of a prospective investment.

What are the benefits of adding digital currencies to my portfolio?

Digital currencies possess many unique qualities. Because digital currencies are borderless, fungible, and accessible, they may be a great way to diversify your portfolio.