Frequently Asked Questions

About Zet Fund Index

What is Zet Fund?

Zet Fund operates under the company Zet which develops and provides financial technology-based products and services to individuals and companies.

Zet Fund’s primary product is Zet Fund Index. Zet Index Fund allows retail investors with no financial or technical background and no high net income to invest in a range of assets and companies with much less bureaucracy or financial threshold comparing to a classic or old-fashion manner of an index or mutual funds.

Technology we apply for our product, Zet Fund Index, allows us to cut the application and reporting procedures to minutes, instead of days as before, and reduce transactional expenditure up to 10 times.

Other words, Zet Fund is 1-2 click investment solution for non-sophisticated investors from around the globe.

What is an index fund?

“Indexing” is a passive and thus a more secure and less expensive form of fund management. An index fund tracks the progress of a range of pre-reviewed and selected projects/assets. Zet Fund Index consists of several assets which were thoroughly analyzed in terms of their market potential and future profits, selected into the portfolio and now being tracked by Zet Fund technology.

How does Zet Fund Index solution operate?

Zet Fund Index, further ZIF, is based on blockchain and comprises of smart-contracts and other automatic and semi-automatic solutions involving Zets as native mutual fund tokens.

Zet Fund Index (ZFI) tracks an array of assets which are thoroughly selected by Zet Fund analysts and now are passively managed by code written in smart-contracts. This approach reduces many risks and operational costs. Fund managers do not have access to the fund funds as they are managed and controlled by the code and stored in a decentralized manner on the network.

Zet Fund analysts apply their best knowledge to find and select potentially high yield assets traded in the market. Once a new investment opportunity is found, it is included into Zet Fund Index portfolio through voting procedures occurred on the voting smart-contract.

Zet Fund Index solution operates specific portfolio balance rules and automatically distributes funds accordingly to its rules. The rules are applied for funds deposit/withdrawal and portfolio update processes. Portfolio balance rules are reviewed and reworked if needed by Zet Fund specialist on a regularly timed basis in order to maximize profits and reduce costs.

For more technical and financial information on how Zet Fund Index solution operates, please, address Zet Fund Index White Paper or our support via support@zet.fund

What is Zet Fund Index token?

Zet Fund Index is a mutual fund based on blockchain technology where tokens present investors ownership in the fund.

Zet Fund Index token has a short name of Zet. It is not traded on exchanges and can be obtained from Zet Fund only. The tokens present an agreement between an investor and Zet Fund, that Zet Fund will exchange tokens for an agreed equivalent of crypto or fiat money.

Once a new investor enters the fund, he or she receives Zet Fund tokens or Zets proportionally to his or her investment size and current token price.

Token price is calculated from the fund’ capitalization valued in US dollars divided by the total number of issued tokens.

 

E.i.

Fund’s capitalization is $2 000 000,

the otal number of issued tokens is 10 000 000.

Therefore price of the token is $2 000 000/10 000 000 = $0.2 per token (per Zet).

If an investor deposits $100 on his account, he or she receives $100/$0.2 = 500 Zets.

 

The initial number of Zet Fund Index tokens or Zets is 10 000 000 (ten million). The number of tokens is not finite. New tokens are generated by a smart-contract once a new investor enters the fund by depositing his account. Once an investor requests a withdrawal, a portion of tokens is burned and an equal number of funds is given to an investor minus applied fees.

For more information on Zet Fund Index native tokens, please, address Zet Fund Index White Paper or our support via support@zet.fund

What is a lock-up period?

A lock-up period is a timeframe applied to investors accounts of Zet Fund Index when investors are not allowed to redeem or sell tokens. Applied lock-up periods is a security, economy and strategic measure that helps Zet Fund managers to plan long-term proceeding goals of maximizing profits and minimizing transaction costs and avoiding market risks.  

An investor is allowed to provide a desired lock-up period for a deposit. The minimum allowed lock-up period is 180 days. Applied lock-up period affects the management and performance fee, but the general rule is the longer the lock-up period, the lower investors payments for fees are.

An investor is notified when a lock-up period end is approaching and once it is over. Once a lock-up period ends, an investor can redeem or sell part or the whole amount of his tokens to the fund and receives an equivalent in crypto or fiat money.

Once lock-up period ends and an investor does not perform any action over his funds during 7 days, lock-up period is renewed automatically according to the previously selected rules.

How often are the dividends and profits are paid?

Zet Fund Index portfolio may consist of different types of assets, some of them may present a native network currency (e.i. ETH), others can present shares of a company and are liable for dividends payouts. Dividends are usually paid on a quarterly basis and only in case if a company is profitable. Net profits derived from asset market value growth are paid on Zet Fund Index tokens (Zets) redemption only.

Investors’ perspectives