Manager and Strategies
A Manager is the individual or entity responsible for running a strategy on GRVT. All managers are verified by GRVT before being allowed to launch strategies. While managers have full control over trading execution, they cannot access or withdraw investor funds. Positions are updated every four hours to protect the manager’s edge while giving investors visibility into how their capital is being used. Each strategy is a live, on-chain representation of the manager’s conviction and skill.
Investors
Investors are users who allocate capital into strategies they believe in.
Shares
When an investor allocates capital into a strategy, they receive shares that represent their ownership. These shares are minted based on the strategy’s current net asset value and are burned upon redemption. Share value fluctuates with the strategy’s performance.
Investment and Redemptions
Investment is the act of contributing USDT into a strategy in exchange for shares. The number of shares received is based on the strategy’s current share price. All investments are handled on-chain and follow a trustless, rules-based process.
Redemption means returning your shares in a strategy to receive back USDT.
Incentive Structure
Managers Earn Through Performance
Managers are rewarded based on their ability to generate returns. Their compensation comes from:
Management Fees: A small daily fee based on total assets under management, paid in strategy shares and minted via a compounding formula. The manager can set this number between 0 and 4%.
Performance Fees: Charged on profits realized at redemption, based on the difference between entry and exit price of investor shares. The manager can set this number between 0 and 40%.
Marketing Fees: A portion of the manager’s earnings is optionally allocated to GRVT in exchange for visibility and promotion on the platform. All initial vaults will have 0% marketing fee.
Investors Own the Upside
Investors gain when they back successful strategies. Their returns are reflected in appreciating Share Value: Strategy shares increase in value as the manager performs.
Risks of investing in a strategy
Strategies are exposed to trading risk, share prices can decrease. Additionally, during the redemption period, investors share in any losses but are excluded from gains, which reduces risk of fee avoidance.
Who can create a Strategy?
Anyone can create a strategy if they meet the minimum investment requirement of $10,000.
Can Strategy Settings Change?
Some fields can be updated (e.g., redemption periods, valuation caps), while others (like management fees) can only be adjusted in a specific direction (e.g., fees reduced, not increased).