Everything You Need To Know:
- ReserveFunding is for you to invest in traditional, alternative investments using crypto.
- ReserveFunding is another liquidity channel for underserved community non-bank lenders.
Together, you and I are reinventing an industry. Retail crypto holders, like yourself, are looking for options to earn passive income without incurring another tax event. You have asked for rails into traditional investments with higher, and non-ethereum correlated returns. You also want to manage your crypto and traditional investment portfolio in the same place. This is ReserveFunding.
We knew something had to change. You are now provided access to investments previously available to the ultra-high net worth and those dealing strictly in fiat.
The benefits of an income-focused strategy:
- Use cross-chain and cross project leverage to maximize your potential un-ethereum correlated yield
- Ladder maturities across various asset and risk classes. You still play, but keep a chunk aside earning steady, high-yield income.
- Unimaginable combinations of asset and investment types await
- ReserveFunding will have vaults across the yield spectrum (risk and return).
With us, there’s no middle man, which means an easier process and typically lower fees. Our software simply facilitates you, the investor, to the deal described by the vault.
Choose from a variety of investment products to suit your needs. ReserveFunding will offer a unique suite of products across a range of asset classes with various yields, durations and minimums.
How Does unFederalReserve Get Paid?
The displayed and advertised target return for all offerings on the platform are net of our management and listing fees. These are also net of the licensing fee to our rails, which we use to purchase $eRSDL out of the market.
unFederalReserve intends to collect an average 1–2% originator fee on all offerings from its available funds annually.
There may also be flat, annual fund expenses that investors are responsible for per investment (these are paid from initial interest distributions from your investment) that vary slightly depending on the legal structure of the offering (either SPV or other structure).
How Do I Make My First Investment?
First, you’ll need to have a crypto wallet with Ethereum (for gas) and USDC. We are working on a username/password onramp that will allow you to convert from fiat to USDC or other supported crypto currency. To begin, click the “Sign Up” button on the homepage. After completing your investor profile, you’ll be able to participate in an investment offering. To make your first investment, simply login to the ReserveFunding platform, visit the offerings marketplace and then click on the individual offering. Next, click “Invest Now” to enter your desired investment amount, noting the investment minimum. You’ll then arrive at a page finalizing how you would like to fund your investment.
Please be advised that after investing with ReserveFunding, you are required to maintain the investment under the original investor account you used to submit your investment request. Once an investment request is submitted, you are agreeing to the terms and conditions of holding the investment in the account owner’s name. Our platform does not support the transfer of any investment to another account.
What Am I investing In?
ReserveFunding provides investors access to alternative investments, typically with low correlation to the stock market. Previously, investments of this kind have been reserved for hedge funds and large institutions.
We are working with experienced originators who provide a loan for a project (or need) that is collateralized by an underlying asset from the associated borrower, such as a real estate property, business venture, legal settlement or shipping vessel.
Our offerings will focus on a number of alternative asset classes, including Real Estate, Legal Finance, Marine Finance, Commercial and Consumer Finance and Art Finance. You will be able to learn more about each of our asset classes in our Resource Center.
How Often Will I Receive Payments?
While the majority of our offerings will have predefined payment schedules, i.e. monthly or quarterly payments, some investments distribute interest and principal based on the occurrence of certain events. The anticipated payment schedule is always outlined on the offering page of the investment offering as well as the Series Note Supplement or Investment Memorandum.
Offerings with predefined payment schedules pay at regular intervals (monthly, bi-weekly, quarterly, etc.). The offering page of each investment details the exact payment schedule. The offering page also outlines whether investors can expect principal payments throughout the duration of the investment or at maturity of the deal. It is important to understand that a monthly or bi-weekly payment schedule does not necessarily mean that payments will be made on the first and fifteenth of each month.
Some offerings may be structured with an event-based payment schedule. Event-based payment schedules are commonplace for portfolios of pre-settlement litigation advances. An event-based payment schedule means that investors receive payments as soon as individual cases within a portfolio settle.
Payment dates and amounts cannot be pre-determined because the timing of the settlement of the underlying cases is uncertain. Given that these investment offerings are made up of multiple underlying cases, an investor can expect to receive multiple payments throughout the term of the investment. For litigation finance investment offerings with one underlying case, you can expect to receive one payment of principal and interest upon final settlement.
Payments are not guaranteed and may be subject to delay or total loss. See the risk factors for each applicable offering for more details.
How Do I Fund My Investment?
Currently, for most investments, you don’t need to pre-fund your ReserveFunding account. Once you submit an investment allocation, an ACH draft from your external bank account will be initiated if there are not enough funds — or no funds — in your account. This ACH transfer will be initiated at the time of your investment request or if you select to delay, 2 days after making the request.
You can choose to pre-fund your ReserveFunding account ahead of making an investment request. Pre-funding your account will shorten the time it takes to process your investment request, which means you will start earning interest sooner.
Let’s reinvent an industry. In traditional finance, the currency translation risk and tax consequences are just not “a thing” as long as you stay in USD. Interchanging multiple currencies, however, and marrying traditional investments and crypto investments while maintaining U.S. regulatory compliance is no small feat. The market is calling for these services, and you will also be able to manage your crypto and traditional investment portfolio in the same place.
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