Q: Where are client assets stored and can they be commingled or lent out?

Client assets are held in 1:1 segregated qualified custody accounts (Fireblocks MPC and Coinbase Prime) registered in the client or corporate entity name. Trade-only API access ensures zero withdrawal authority; capital can only ever be redeemed back to the verified origin bank account.

Q: What is the fee structure and high-water mark policy?

Plugsic operates under a 0% fixed annual management fee and a 15% incentive fee charged strictly on net profits above a permanent High-Water Mark (HWM). If no net profit is generated, the fee is $0.

Q: What are the withdrawal and redemption liquidity terms?

Plugsic provides standard T+1 daily liquidity with zero lockup periods or exit penalty fees. When redemption is requested, the system automatically unwinds the delta-neutral hedge and transfers settled funds directly to the origin bank account.

Question 1

How does Plugsic generate yield without directional market risk?

Accepted Answer

Plugsic executes Cash-and-Carry Basis Arbitrage (|β| < 0.02). By holding physical spot assets 1:1 alongside an equal short futures hedge across Tier-1 venues, directional price exposure is neutralized while collecting the 8-hour funding rate premiums paid by leveraged traders in USD/USDC.

Question 2

Where are client assets stored and can they be commingled or lent out?

Accepted Answer

Client assets are held in 1:1 segregated qualified custody accounts (Fireblocks MPC and Coinbase Prime) registered in the client or corporate entity name. Trade-only API access ensures zero withdrawal authority; capital can only ever be redeemed back to the verified origin bank account.

Question 3

What is the fee structure and high-water mark policy?

Accepted Answer

Plugsic operates under a 0% fixed annual management fee and a 15% incentive fee charged strictly on net profits above a permanent High-Water Mark (HWM). If no net profit is generated, the fee is $0.

Question 4

What are the withdrawal and redemption liquidity terms?

Accepted Answer

Plugsic provides standard T+1 daily liquidity with zero lockup periods or exit penalty fees. When redemption is requested, the system automatically unwinds the delta-neutral hedge and transfers settled funds directly to the origin bank account.

Model Real Yield. Stress-Test Principal.

Model Real Yield. Stress-Test Principal.