Regulatory Compliance
Compliance First
Regulatory unclarity around digital assets is the main entry barrier for traditional fund managers. Regulations are constantly evolving but in many jurisdictions, it's still at an early stage. The protocol is built to have compliance with the current regulations as its core principle. The regulators must first approve every Fund before being deployed on-chain and starting its operations.
Jurisdiction
As a reputable jurisdiction, the platform will conform with the European Alternative Investment Fund Managers Directive ( AIFMD ) to create AIFs registered in Luxembourg 
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.The new regulation by FINMA called L-QIF will be enacted in 2023 in Switzerland. It will also be a major focus, as the team has experience in that country.
Later, it will allow the creation in other jurisdictions such as Malta, the Cayman Islands, and eventually the US. The protocol's buidlers actively engage with the regulators to explain the technology, ensure compliance with existing frameworks, and possibly create a regulatory sandbox to lay the foundation of new on-chain management requirements.
AML/CFT
Standard AML/CFT practices still apply, just as for traditional investment funds. The onboarding procedure always starts with the investor's KYC. PolygonID is the first natural service that will be used for this step. The following KYC providers set to be working on PolygonID: Onfido, Sumsub, Jumio, Synaps, Fractal. In the future, the integration with other existing on-chain KYC services will simplify this step, further reducing the administrational workload for Fund Managers.
Legal Structure
We provide a fast and cheap option using our existing legal structure. The Manager could rely on the Fund setup services offered by the platform. As part of the Manager onboarding procedure, the Fund is legally registered by Bonalp Management Sàrl (AIFM A00003215), a licensed AIF Manager at the CSSF in Luxembourg. Funds are constituted as segregated portfolios within Cryptoro Capital SLP (AIF V00006879).
A future alternative is the possibility to use a legal structure in Lugano. Lugano is the third most important financial center of Switzerland and Fume is currently planning a partnership with them. The central location in Europe as well as the planB initiative from the city creates a great environment to open funds.
Alternatively, the Fund Manager can create an entirely new legal structure. or use its own.
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Basic Specs
Protocol Fees