FAQ

KPI and UI

The APY (Annual Percentage Yield) percentage you see is an estimate of the annualized returns, calculated based on the performances achieved to date. It reflects the expected return on your investment in CivFund over a year, considering the effects of compounding interest. Please note that this percentage is net, meaning performance fees have already been deducted. Actual returns may vary depending on future market conditions and the fund’s ongoing performance.

The PILOT pool can be found here: fund.civproducts.org

Strategy Operations

CivFund is considered a perfect hedge because it is meticulously designed to minimize risk while generating returns, effectively eliminating the impermanent loss typically associated with liquidity provision. It employs advanced strategies, including delta and gamma hedging, to protect your investments against market volatility. Delta hedging stabilizes your investment against small price fluctuations, while gamma hedging ensures continued protection during larger price swings. Together with AI-driven automation, these strategies enhance the overall security of your assets, instilling confidence in your investment.

Not really, Impermanent Loss is fought back by the hedged position (futures).

Yes, LPs are on chain, hedging is off chain. Monitoring merges the info for users’ understanding.

Yes, let’s suppose CivFund’s strategy is operating on the SHIB/ETH pool. Imagine a scenario where SHIB suddenly decreases by more than 10% in terms of its ETH price. This could happen if ETH rises in dollar terms while SHIB actually declines. However, despite this drop, the position only incurs a small loss of a fraction of a percent, thanks in part to the fees it earned. In summary, this demonstrates the hedge: the primary goal is to protect the investment, while earning returns is the secondary priority.

CivFund charges a performance fee of 20% on strategy gains. These fees are utilized for the benefit of the Civilization ecosystem and are allocated as follows: 50% of the performance fees are directed toward buybacks of the CIV token, helping to support its value and strengthen the overall ecosystem. The remaining 50% is dedicated to marketing and development initiatives, ensuring continuous growth and improvement of Civilization.

Deposit

Yes, CivFund charges a 1% entrance fee on all investments.

CivFund works with USDT, ETH is required for network fees only.

The initial approval is necessary, and subsequently, you’ll need approval each time you wish to make an additional deposit or make changes to your existing deposit. If you make a single deposit and leave it untouched, no further approvals are needed.

There are two main scenarios that can arise during the USDT approval process:

  1. First-Time Users:
    • If this is your first time using CivFund, a spending cap request for your USDT will appear. You will need to enter the desired amount of USDT as a spending cap for CivFund. After approving this request, the ‘Book Deposit’ button will be enabled, allowing you to proceed with your investment.
  2. Existing Users:
    • If you have already made a USDT approval in the past, a ‘Signature request’ message will appear instead. According to the USDT contract, any previous approval must be revoked before setting a new spendable amount. If you do not sign the ‘Signature request,’ the process will fail.
    • After signing the ‘Signature request,’ a revoke transaction will appear. You will need to approve a transaction with a spending cap of 0 USDT to revoke the previous allowance. After that, another transaction will appear, allowing you to enter the desired amount of USDT as a spending cap for CivFund, which you can then approve.

Start by clicking the ‘Edit Allowance’ button. If you see a ‘Signature request’ message, it means that a previous approval needs to be revoked before you can book a deposit. Sign the ‘Signature request,’ and then approve a transaction with a spending cap of 0 USDT to revoke the previous allowance. After completing this step, you can re-enter the desired spending cap for USDT and proceed to book your deposit. If this is your first time using CivFund, ensure you’ve entered the desired amount as a spending cap and approved it before attempting to book a deposit.

The amount of XCIV you received are your CivFund’s shares, and represent your position. If you add more funds to your deposit, your shares (XCIV) will increase accordingly.

CIVFundShare (XCIV) contract: 0xd7e9709d152B9eF7D7BE07C5954c51386481CfEC

Yes, you can deposit funds during the current epoch (pending assets), and these will be transferred automatically in the strategy when the new epoch starts.

CivFund will swap your USDT with the tokens required by the strategy – and set up the hedge for them – you don’t have to do anything manually.

Withdrawal

No, there are no withdrawal fees associated with CivFund. However, a 20% performance fee is charged only on the strategy’s gains and is calculated internally at each rebalance. It’s important to note that the Annual Percentage Yield (APY) displayed is net of these performance fees, as is the Value Per Share (VPS), reflecting the actual returns you can expect from your investment.

After initiating a withdrawal, the USDT will not appear in your wallet immediately. You need to claim the assets after the withdrawal is processed at the end of the current epoch through the rebalancing process. The start and expiration dates for each epoch are displayed on the dApp interface. Once the rebalancing is complete, the funds will be in the vault, available for you to claim under the ‘Claimable USDT’ section. Click the ‘Claim Assets’ button and approve the transaction to have the USDT transferred to your wallet.

Compounding

Yes, compound is automatic, also during the epoch.

Yes, exactly.

Monitoring

On the official dApp’s interface, fund.civfund.org.

The Value Per Share (VPS) is the value of a single XCIV in dollar.
At the beginning of CivFund, the Value Per Share (VPS) was set at 1. If the current VPS is now 1.25, it indicates that the performance to date has increased by +25.0%.

This means that if you hold 1,000 XCIV (CivFund’s shares) with a Value Per Share (VPS) of 1.25, the total value of your investment amounts to $1,250.

The pool volumes, upon which the strategy is built, remain unchanged. However, there have been fluctuations in the volumes of BTC or ETH. In a typical delta-neutral strategy, in the event of a spike, the value is reduced as it ensures the underlying value is not susceptible to impermanent loss.

Security

We prioritize security and continually enhance our products and processes. As part of our commitment to safeguarding your assets, we have collaborated with FYEO for a comprehensive security audit. Our deposit/withdrawal process incorporates an additional layer of protection. Initially, your funds are secured within a smart contract-driven vault. Subsequently, they are transferred to the Fund at the commencement of the next epoch via a multisig wallet This multi-faceted approach ensures that your investments are well-protected, instilling confidence in the security of your assets.

Your investments are protected through meticulous security measures designed to safeguard your assets. CivFund employs advanced strategies, including delta and gamma hedging, to manage risks effectively. Delta hedging stabilizes your investment against small price fluctuations, while gamma hedging ensures that your protection remains strong during larger price swings. Combined with our comprehensive security protocols, these strategies help provide a secure environment for your funds, giving you confidence in your investment.