Administration

Decision Making

HFH holders decide all investments through consensus voting. Votes are weighted proportionately based on HFH NFT ownership. After due diligence, alpha, and feedback are shared, the following votes are called in order:

1. Poll with 6-12 investments which have received the highest amount of positive feedback. These investments will have been reviewed during investment meetings so the entire community is well informed on their decision making.

2. Poll with top 3 investments from the first poll.

3. Poll with options for asset allocation on the top 1 investment. If possible, an option will be included to make a small additional investment on the second place option.

4. The HFH founders will never override a consensus vote by the community but do have the ability to call an additional vote for clarity if we believe there is any misunderstanding on the outcome.

HFH currently uses Pollmasterwhich is a Discord bot capable of creating and managing complex polls on a server. Through Pollmaster, we are able to provide a seamless experience for easy and quick voting, weighted votes, flexibility on options, and a proper timeframe when the poll will close.

The voting process outlined above applies to all decision making in the HFH DAO. For instance regarding selling assets, polls will be setup to determine which assets to sell, how many to sell, and a listing price. Polls will run long enough to give holders from all time zones an opportunity to vote. This length is somewhere between 16-24 hours depending on how quickly a decision is needed.

HFH DAO Management

HFH founders are responsible for managing the funds of the community wallet. This includes, but is not limited to, the following operations:

• Transferring funds from the smart contract to the community wallet.

• Ensuring community wallet funds have proper security in place such as, but not limited to, use of a hardware wallet.

• Performing investments such as minting or buying off the secondary market.

• Performing maintenance on NFT investments such as collecting tokens, customization, etc.

• To the best of our ability ensuring low transaction fees when transacting.

• Listing and selling assets on secondary markets.

https://etherscan.io/address/0x5f054923cf2a7465ef904485866e37131f730540etherscan.io

Hedge Fund wallet address on Etherscan.

0x5f054923cf2a7465ef904485866e37131f730540 - Profile | OpenSeaOpenSea

Hedge Fund account on OpenSea.

Calculations

All HFH holders own equity in the HFH DAO. Their amount of ownership is based on their number of units. Therefore, owning more HFH tokens means greater ownership in the HFH DAO.

HFH tokens 1-1,667 are worth 550 units.

HFH tokens 1,668-3,333 are worth 500 units.

HFH holders can calculate their ownership with the percentage formula:

$$(ownership~percentage)=(total~units~owned)/(total~units)$$

Total units are calculated with the formula:

$$(total~units)=(total~HFHs~minted)*(525)*(1.10)$$

Note this sets aside a small percentage of returns for giveaways and community events. At 50% minted there is 4.8% set aside for giveaways. At 75% minted there is 7.6% set aside for giveaways. At 100% minted there is 9.1% set aside for giveaways. HFH founders are not eligible for rewards, and therefore, any HFHs minted by a founders wallet must be deducted from the total HFHs minted.

To calculate HFH DAO performance we need to define a couple terms:

Period: Length of time to measure returns, by default set to a standard quarter (Q1, Q2, Q3, and Q4).

Benchmark: Balance of the HFH DAO at the start of the period, in cryptocurrency.

Therefore, the HFH DAO performance is measured using the formula:

$$(performance)=(period~ending~balance)-(benchmark~balance)$$

Calculating rewards for individual HFH holders is done using the formula:

$$(HFH~holder~reward)=(ownership~percentage)*(performance)$$

Due to the HFH DAO owning several different types of currencies (Ethereum, Wrapped Ethereum, MATIC, etc.), all calculations involving a balance will be converted to a single cryptocurrency. By default we will use MATIC on the Polygon Network as the default currency, however, the balance would be the same regardless of cryptocurrency selected.

Conditions

Please note the following conditions apply to the HFH DAO:

• As a matter of compliance, HFH holders who wish to receive rewards must partake in a small marketing task each month such as a retweet or sharing of an HFH post. These tasks will be announced through the Discord to make the process as efficient as possible.

• By default, rewards will be issued on the Polygon network to minimize transaction fees. If desired, these funds can be easily bridged over to the ETH network for very small fees.

• If the HFH DAO performance is negative for a period, then no rewards will be available for that period. This condition will reset every period.

• Rewards will be reserved for a timeframe of six (6) months after the start of their availability. After that time expires, rewards will be rolled back into the HFH DAO community fund.

• HFH founders are not eligible for rewards regardless of HFH token ownership.

• Selling HFH tokens also transfers the corresponding equity units to the recipient.