AoABT
Asseto Orient Arbitrage
Introduction
AoABT (Asseto Orient Arbitrage) is the pilot RWA token supported and operated by Asseto as the Technology Provider, backed 1:1 by a funding rate and spread arbitrage strategy managed by a seasoned investment manager under a robust fund structure advised by Orient Asset Management (Hong Kong) Limited. The token demonstrates Asseto’s focus on institutional-grade security and transparency to construct yield-bearing tokens backed by strategies that carry low-risk and stable returns. The per-token price of AoABT is pegged to the NAV of the underlying Fund which reflects the accumulation of investment yields. Therefore, the price of AoABT tokens increases as the Underlying Fund makes investment returns. AoABT is available to qualified investors and regions. Prior to subscription, you may be required to complete KYC (Know Your Customer) procedures. While creating AoABT in compliance with these requirements and applicable laws may impose certain limitations, the process ensures transparency and regulatory adherence. For instance, the minting of your AoABT tokens will follow the dealing cycles of the Underlying Fund.
Token Type
Accumulating
Yield Distribution Profile
Reflected through an increasing redemption price (NAV per share)
As Return of the Underlying Fund Yield Accrues, the Token Price
Increases
Use cases
Buy-and-hold cash management, transferrable in eligible jurisdictions, trading pairs (subject to the support of CEX, DEX), collateral in smart contracts
Underlying Fund
Digital Assets Quantitative Arbitrage Strategy is a market-neutral arbitrage strategy that provides zero-delta, high-conviction returns by employing automated funding rate arbitrage and spread strategies in the cryptocurrency market.
Orient Asset Management (Hong Kong) Limited (“Orient AM HK”), a subsidiary of Orient Securities Co., Ltd. (00958.SH, 3958.HK), is acting as the advisor of the Underlying Fund* of AoABT which currently deploys the Strategy, to enhance the Fund’s overall operation. Orient AM HK holds Type 4 and Type 9 licenses (CENo.:AVH864) from the Hong Kong Securities and Futures Commission (“HK SFC”) to conduct Advisory and Asset Management activities. Orent AM HK has been granted license uplifts to provide virtual asset related asset management services by the HK SFC.
The Fund refers to Fisherman Capital Fund SPC - Ammonite SP, a Segregated Portfolio under a Segregated Portfolio Company registered in the Cayman Islands. Orient AM HK is appointed by the Manager of the Fund to acting as the advisor.
Annualized Return
27.2%
Average Monthly Return
2.2%
Sharpe Ratio
>10
Historical Max Drawdown
<0.5%
With a minimum initial subscription amount of USD100,000 and subsequent minimum subscriptions of USD100,000, the fund charges a management fee of 1.0% per year and a performance fee of 20% above a return threshold of 6%. The fund operates on a monthly trading frequency and includes a 1-year lock-up period, with redemption fees ranging from 1% (0-12 months) to 0% (after 12 months).
Investment objective
The investment objective of the Fund is to achieve consistent and stable returns regardless of the overall direction of the Cryptocurrency market. The Fund aims to provide investors with a market-neutral investment strategy that mitigates exposure to market volatility and maximises risk-adjusted return.
There can be no assurance that the investment objective will be achieved.
Investment strategies
The Fund will employ a market-neutral strategy designed to be unaffected by broader market movements. This strategy leverages advanced quantitative systems to continuously monitor market conditions and the liquidity of targeted assets in real-time. By swiftly capturing arbitrage opportunities between spot and derivative markets, as well as discrepancies across various exchanges, the Fund seeks to generate profits through:
Funding Rate Arbitrage: Exploiting differences in funding rates between spot and Cryptocurrency Derivatives.
Basis Trading: Profiting from the basis, or the difference between the spot price and the futures price of a Cryptocurrency.
Cross-Exchange Arbitrage: Identifying and capitalising on price differentials for the same asset across different exchanges.
Through rigorous and real-time analysis, the Fund aims to identify and execute on these arbitrage opportunities with precision, thereby maintaining a neutral market exposure while delivering consistent returns to investors.
Key Definitions
Advisor
Orient Asset Management (Hong Kong) Limited
Administrator
WE Services Limited
Business Day
Hong Kong
Class A3M Share
a Participating Share in respect of the Fund designated as a Class A3M Share being offered for subscription under the terms of the Memorandum and this Supplement
Class A6M Share
a Participating Share in respect of the Fund designated as a Class A6M Share being offered for subscription under the terms of the Memorandum and this Supplement
Class A12M Share
a Participating Share in respect of the Fund designated as a Class A12M Share being offered for subscription under the terms of the Memorandum and this Supplement
Class B Share
a Participating Share in respect of the Fund designated as a Class B Share being offered for subscription under the terms of the Memorandum and this Supplement
Class C Share
a Participating Share in respect of the Fund designated as a Class C Share being offered for subscription under the terms of the Memorandum and this Supplement
Custodian
Komainu (Jersey) Limited
Investment Manager
Fisherman Capital Limited
Redemption Day
Class A3M Share: each day falling on the expiry of every three-month period from the date on which such Participating Share is issued
Class 6M Share: each day falling on the expiry of every six-month period from the date on which such Participating Share is issued
Class 12M Share: each day falling on every anniversary of the date on which such Participating Share is issued
Class B Share: each day falling on every anniversary of the date on which such Participating Share is issued
Class C Share: each day falling on every anniversary of the date on which such Participating Share is issued
Redemption Deadline
5:00 pm (UTC+8) on a Business Day that is at least thirty (30) calendar days before the relevant Redemption Day
Redemption Price
the Net Asset Value per Share of the relevant Class as at the Valuation Point on the Valuation Day immediately preceding the relevant Redemption Day
Subscription Day
the first calendar day of each month
Subscription Deadline
5:00 p.m. (UTC+8) at least five (5) Business Days prior to the relevant Subscription Day
Subscription Price
the Net Asset Value per Share of the relevant Class as at the Valuation Point on the Valuation Day immediately preceding the relevant Subscription Day
Technical Solution Provider
Asseto Fintech Limited and/or its subsidiaries
Valuation Day
the last calendar day of each month
Valuation Point
24:00 (UTC) on each Valuation Day
Key Terms of Offering
Minimum initial investment
US$100,000
Subscription Fee
Not applicable
Minimum subsequent subscription
US$100,000
Class A Preferred Return
For these purposes, SOFR refers to the closing price of the Secured Overnight Financing Rate as ascertained as at each Valuation Day.
Notwithstanding the above, investors should note that the Preferred Return is not a guaranteed return and its availability is subject to, among other matters, the performance of the Fund's investments. Therefore, it is possible that Class A Shareholders will receive less than the Preferred Return.
Class
Preferred Return (annualised rate)
Class A3M Shares
Higher of (i) 3.5% and (ii) SOFR +2.5%
Class A6M Shares
Higher of (i) 4.5% and (ii) SOFR +3.5%
Class A12M Shares
Higher of (i) 6.0% and (ii) SOFR +5.0%
Net Asset Ratio; Supplemental Subscriptions
The ratio between the aggregate Net Asset Value of Class A Shares and the aggregate Net Asset Value of Class B Shares (Net Asset Ratio) shall initially be or lower than 2:1.
If, at any time the Net Asset Ratio between Class A Shares and Class B Shares raises to higher than 3:1, subscription of Class A Shares and redemption of Class B Shares will be immediately suspended until the Net Asset Ratio falls back to or below 3:1. The Investment Manager will also inform the investors in Class B and suggest the Class B Shareholders to subscribe for new Class B Shares to improve the Net Asset Ratio to below 3:1.
In addition, if the Net Asset Ratio calculated on each Valuation Day rises to above 5:1, the Investment Manager will notify and invite all Class B Shareholders to make a supplement subscription (a Supplemental Subscription) of additional Class B Shares in order to cause the Net Asset Ratio to fall back to or below 5:1.
Settlement
Payment of redemption proceeds will normally be made within the ten (10) Business Days after the finalisation of the Redemption Price in respect of the relevant Redemption Day. However, payment of redemption proceeds will not be made until the Administrator has received all information and original documentation requested.
Management Fee
one twelfth (1/12) of one per cent (1%) of the Net Asset Value of each Class of Participating Shares as at the last Valuation Day
Performance Fee
Class A: No Performance Fee
Class B: 20% of the appreciation in the Net Asset Value during each month above the last High Water Mark increased at the rate of 10% per annum
Class C: 20% of the appreciation in the Net Asset Value during each month above the last High Water Mark increased at the rate of 0% per annum
Reporting
Annual report and audited financial statements; monthly report on the investment performance and Net Asset Value
Partners
Custodian: Komainu (Jersey) Limited
Komainu is a regulated digital asset custodian and service provider, headquartered in Jersey, with offices in London, Dubai, and Singapore. Built by institutions for institutions, Komainu offers multi-asset support, bank-grade governance and multi-jurisdictional regulatory oversight, merging expertise from traditional financial services with leading security standards for the next generation of institutional digital asset custody, servicing & financing solutions, as well as providing an enterprise gateway for institutions to access the digital asset ecosystem.
Legal Advisor: Ogier
Ogier is an international and offshore professional services firm with the knowledge and expertise to handle the most demanding and complex transactions and provide expert, efficient and cost-effective services to all our clients. Our commercial understanding and experience of working with leading financial institutions, professional advisers and regulatory bodies enable us to add real value to our clients’ businesses.
Fund Administrator: WE Services Limited
With more than 10 years of experience in global jurisdictions, We Services provides a “one-stop” service for overseas companies. We Services provide a full range of complete, professional, efficient and independent service platforms, from the design of the company's structure and choice of domicile, bank account opening, auditing, compliance obligations and reporting, to global fundraising, redemption, valuation of investment projects, internal control and coordination with external parties.
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