Key
Information
Document

KEY INFORMATION DOCUMENT OF IVBF, s.r.o.

Effective date: June 1, 2023

Purpose

This document will provide you with key information about the IVBF investment product. This is not promotional material. Providing this information is required by law to help you understand the nature, risks, costs, potential returns and losses associated with this product and to compare it with other products.

What product is IVBF?

Product creator: IVBF, s.r.o. – www.ivbf.io

Product characteristics: Share in a set of virtual and derived assets

Product complexity: High complexity

Authority responsible for supervising the creator of the product: none (the creator is not subject to the supervision of the Czech National Bank or another regulator)

Type of the product

Contractual instrument traded outside the exchange trading system (over-the-counter) – the creator of the product performs the activities of a so-called alternative fund, i.e. manages the assets of investors with an allocation focus on digital currencies and their derivatives (hereinafter referred to as "cryptocurrencies"), investing in other cryptocurrency funds, trading with other digital (virtual) assets (tokens, NFTs, etc.), as well as investing in securities (all hereinafter referred to as "Assets"), in a manner of delegated investment management.

Objectives

The product is intended for qualified investors who entrust the management of their funds to the creator of the product for the purpose of their appreciation through allocation to Assets, especially cryptocurrencies and Assets derived from them. The creator of the product manages the entrusted funds and invests within the alternative fund in individual categories of Assets according to the current and expected development of the values of the underlying Assets.

The product is not a security, its basis is contractual. Based on the investment contract concluded with the product creator, the investor entrusts him with funds. The creator of the product is then obliged to manage the Assets in the alternative fund in the manner specified in the contract and in accordance with the elaborated investment strategy. The value of the assets managed by the alternative fund is continuously updated and reported to the investor on a monthly basis, so the investor has information on the development of the value of his share of the alternative fund's assets. The investor's exit from the alternative fund is not fixed in time, it is flexible (investors can exit at the end of any calendar month). At the end of the investment, the creator of the product will return to the investor the corresponding share of the investor's value of the managed Assets of the alternative fund.

The range of asset categories in which the alternative fund is authorized to invest is wide. It primarily includes both cryptocurrencies with the highest volume of market capitalization, as well as little-known cryptocurrencies and their derivatives (liquid staking derivatives or LSDs). The method of asset holding includes direct holding of virtual assets, holding of shares in cryptocurrency funds, accounts on centralized cryptocurrency exchanges, index instruments, other contractual instruments (resulting from interacting with smart contracts of selected DeFi protocols), holding of securities, derivative trades such as perpetual futures or options, etc. The investment focus of the alternative fund is not geographically limited in any way.

The remuneration of the product creator for the management of Assets in the alternative fund consists of management fee (2 % of entrusted funds p.a.) and performance fee (20 % of upside with high watermark as a measure against upside double counting). Both management fee and performance fee are calculated and withdrawn on monthly basis.

As investments in the underlying Assets are reported primarily in the currency of the US dollar, the contractual obligations are also denominated primarily in this currency. This does not exclude the possibility that the investor will provide his funds to an alternative fund based on an agreement with the product creator or that they will be paid to him in another currency.

Duration of the product

Duration: The contract is concluded for an indefinite period.

Option of unilateral termination: The contract can be terminated by both you as an investor and the product creator at the end of a given calendar month in which the notice was delivered to the other party.

Auto-termination of the contract: Not possible.

Intended investor

This product is intended for investors who

are qualified investors,
have comprehensive knowledge and/or previous experience with Assets and financial markets and
understand the high-risk profile of an investment with a long-term investment horizon

Insurance and guarantees

The product does not have insurance characteristics (The product is not an insurance product).

The product creator does not use means of hedging against market fluctuations in the values of the underlying Assets.

This product is not protected by any deposit insurance scheme or guarantee.

What risks am I taking and what return could I get?

Risk Indicator

The Summary Risk Indicator is a guide for comparing the risk level of this product with the risk levels of other products. It shows the probability with which the product will generate a loss due to market movements or because we will not be able to pay you.

We have classified this product as 7 out of 7, which is the highest risk class. This prices possible future performance losses at a very high level.

Beware of currency risk. Upon agreement with the product creator you may pay and/or receive payments in another currency, so the final return you receive depends on the exchange rate between the two currencies in question. This risk is not considered in the above indicator.

This product does not include any protection against future market performance, so you could lose some or all of your investment. If the product creator is unable to pay you the entrusted amount due to fluctuations of value of the underlying Assets, you could lose some or all of your investment.

Performance scenarios

Market development in the future cannot be accurately predicted. The scenarios presented are only indicative of some possible outcomes based on estimated future developments - due to the recent launch of the product creator, no recent earnings history is available.

Initial investment value = 300,000 USD

Recommended holding period = 5 years

The table above shows the money you could get back over the next 5 years (recommended holding period) under different scenarios with an assumed initial investment volume of USD 300,000.

The given scenarios illustrate how your investment could work. You can compare them with other product scenarios.

The scenarios presented are an estimate of future performance based on theoretical assumptions regarding fluctuations in the value of the underlying Assets in which the alternative fund intends to invest and are not an exact indicator. What you get will vary depending on how the market performs and how long you hold the investment.

The figures shown include all costs of the product itself, but do not include any costs you may pay to your consultant or distributor. The information given does not take into account your personal tax situation, which may also affect how much you receive back or how much you pay.

What happens if IVBF, s.r.o. is insolvent or its Assets are "frozen" by authorities?

The funds entrusted to the product creator are kept separate from its operational funds. If the product creator will not be able to meet its operational obligations, for example in the event of insolvency (inability to pay for operational invoices), competent court may, for example, decide on the authorization of reorganization or bankruptcy as part of insolvency proceedings, which may be followed by liquidation. Before liquidation, all investors have the right to withdraw their corresponding share of the value of the managed Assets of the alternative fund.

Crypto is a nascent industry with regulations being continuously developed and harmonized but still with lots of legal and regulatory uncertainties. If the Assets managed by the product creator are for some reason "frozen" by a state authority or its governing body, you may temporarily or permanently lose access to part or even all of your share of the managed Assets.

What costs are associated with the investment?

The table below shows how the total cost you pay will affect the performance of the product. Total costs take into account one-time, ongoing and secondary costs.

The amounts shown here are the cumulative cost of the product itself over the recommended time of its possession. The amounts are based on a example nominal volume of USD 300,000. Amounts are estimates only and may change in the future.

Costs over time

Your distributor who distributes this product to you, or your consultant who advises you on this product, may charge you additional costs. If this is the case, this entity will provide you with information about these costs and show the impact of all costs on your investment over time. The following table is based on the recommended holding time for this product.

Composition of costs

The table below shows the impact of different types of costs on the return on investment, annualized where applicable

How long should I hold the investment? Can I withdraw money early?

The recommended holding period of 5 years is not the same as the contractually agreed holding period. The contract is concluded for an indefinite period and you are entitled to unilaterally terminate the contract at the end of any calendar month (by notice delivered within the given calendar month or by a request to divest all investments after the end of the calendar month within the period specified in the contract). Similarly, the creator of the product is entitled to unilaterally terminate the contract or reduce the amount of the investment.

How can I file a complaint?

You can file a complaint regarding this product, the actions of the creator of this product, the person who provides advice on this product or who distributes it on the website https://www.ivbf.io, in writing to mail address U Nesypky 1255/3, Smíchov, 150 00 Prague 5 or by e-mail sent to the address tomas@impulseventures.com.

Other relevant information

Additional information about this product is available on request. IVBF, s.r.o. revises this key information statement on an annual basis. The latest version of this document is available at http://ivbf.io. If you need further information, please contact us.

Key Information Document