Risk Factors

Argh... the seas be the safest place to be. Only lose a few crew mates per day.

Investment Thesis and Fund Performance

Given the inherent volatility present in Solana and other cryptocurrencies, we will be actively managing impermanent loss across all the fee-generating protocols utilized. Staying up to date on current market conditions allows us to adjust pools and if needed, remove current pools to not incur/or reduce impermanent loss. Some impermanent loss will occur no matter what. We reinvest 15% of the revenue generated each week to grow the fund, which also helps cover impermanent loss. In the event Liquid Capital decides to or is forced to shut down the investment funds, (No plans to do this, but extreme circumstances can occur) we have a few measures in place to redistribute original funds back to Doubloons holders. If something were to happen to the fund manager, the wallet information will be passed on to the team. They would ensure that anyone who is due pay is taken care of, then the total between the project wallet and investment portfolio would be distributed back to current holders based on their share of the fund. Example: 30,000 SOL Fund / 6,250 shares = 4.8 SOL per share. We do not have plans to increase the share count of the Doubloons NFTs - the current share amount will remain static forever. Liquid Capital does not have plans to establish another set of fee-generating NFTs with a separate pool of funds as this could devalue our current set of NFT's. We want our focus to be on current holders and growing this fund in the safest and most efficient way.

Scaling

Liquid Capital intends to manage scale of investments growing the current fund size from 8,900 to approx. 24,000 SOL after the Doubloons mint, as well as over time through reinvestment contributions made into the fund a few ways. -The current 15-20 Pools we have on Hadeswap will only increase to 20-25 pools, as some of the SOL will be added to current pools to help stabilize them and allow a lower delta to be placed to increase how often NFTs are bought and sold from our pools. Example: We have a sharkyfi Pool with roughly 300 SOL TVL(Total Value between SOL and NFTs). This pool usually fluctuates between 10-20 NFTs with a 2% delta. Instead of using all our funds to create a new pool, we would add an extra 150 SOL in both SOL and NFTS giving us a wider range, and allowing us to change our delta to 1 -1.5%. This allows us to capture more sales and earn more fees overall while not increasing the # of pools we manage. We are analyzing other potential collections that would fit into our portfolio. For Hadeswap, currently these include SMBs, Aurory, Dandies, and a few others Rainfi and Frakt allow us to add liquidity to a single pool that can scale infinitely, while loaning out to collections we select at 50-75% Loan to value(Current FP). This makes for smooth scaling. Our low yielding pools also only require us to add more liquidity to a single pool, but continue using our current strategy. This makes this pool of the easiest to scale.