Product Guides

The Volatility Alliance is a unitized shared portfolio. Your money does not buy one stock for you alone. Once a capital call completes, it becomes fund units, and you hold one complete portfolio together with the other participants. Your gain or loss equals the portfolio's gain or loss times your share of the units.

• You hold fund units, not shares registered in your own name.
• The look-through holdings shown on the page are the economic exposure implied by your units; a converted quantity may be less than one share.
• The platform builds and rebalances the portfolio centrally. You cannot choose which holdings to buy or how much.
• Principal is not protected. When the portfolio falls, the value of your units falls with it.

• Your account is in good standing and identity verification (KYC) is complete.
• Suitability is complete: the risk assessment, the knowledge test and the risk disclosure must all be done.
• Your risk profile is at least the product's minimum. The product page shows both the product minimum and your own profile.
• Your deposit is at or above the product minimum, which is shown on the product page.
• The product status is open. When it shows as paused you can still view existing holdings and withdraw queued cash, but you cannot add new money.

If any one of these is not met, the deposit is rejected. That is the admission rule, not a fault.

A deposit does not become a position straight away. Cash queues first, and only when the platform launches a capital call is it moved into the fund pro rata and converted into units; the fund then places its orders. The full sequence is below.

1. Queue: your deposit forms a cash block at the back of the queue, recording its amount, source and entry time. One person can hold several blocks at once (own deposit, returned principal, returned profit, redemption proceeds put back in the queue).
2. Freeze the cutoff: when the platform launches a capital call, it first freezes a queue cutoff. Every block before that cutoff that is in good standing and still has usable balance joins the batch's candidate set.
3. Call pro rata: whatever the batch needs is taken from the candidate set in proportion to each block's remaining balance. It does not start at the head of the queue and drain the blocks in front of you.
4. Issue units: units are issued against the subscription NAV frozen for that batch. Any balance that was not called stays in your original block, keeps its position, and joins the next batch.
5. Build the position: only after units are issued does the fund place its orders against the frozen basket.

For example: A has 2.5m queued, B has 1.5m and C has 1m, so 5m in total. The batch needs 2m, so the allocation factor is 2 ÷ 5 = 40%. A puts in 1m, B 600k and C 400k, leaving 1.5m, 900k and 600k in the queue. If NAV was 1.0000 at the time, they receive 1m, 600k and 400k units — 50%, 30% and 20% of the fund.

Why not build the position immediately: a capital call first freezes the candidate queue and the investment basket, then two different operators separately propose and confirm it (four-eyes approval). Only after confirmation is cash locked, units issued and orders placed. That gives every unit of incoming money an auditable approval trail, and the price is a wait between deposit and position. How long depends on when the platform launches the next capital call, and no specific timing is promised.

A queue position only records the time order of a cash block and its eligibility for the next batch. It does not mean you must reach first place to take part, it does not mean the blocks ahead must be spent first, and it does not mean an earlier position earns more.

Between confirming a capital call and the fund's orders filling, the fund temporarily holds cash. That cash is part of the fund's net assets too, held pro rata by all unit holders.

NAV updates per accounting day, at one daily cut in the product's configured timezone. For the launch product the cut is 16:00 Hong Kong time: before the cut belongs to the previous accounting day, after the cut to the local current day. Fund and customer snapshots for the day are only produced once that cut completes, and the NAV, earnings and charts on the page update with them.

• Before the day's cut, the page shows the last completed accounting day. That is expected, not a delay.
• Non-trading days produce no new valuation; the page is labelled accordingly and keeps the previous trading day's result.
• If any holding lacks a valid quote, the whole valuation stops (fail-closed). The page is labelled as a delayed valuation, keeps the last successful valuation and states the data cut-off. We would rather not update than assemble a plausible-looking NAV out of incomplete quotes.
• Where earnings cannot be verified, the page says so instead of filling in a precise-looking zero.

The page shows three different measures. Do not read all of them as “what I made today”.

Before profit can return to the queue, seven conditions must all hold: the underlying asset has been sold and the profit realized; trading fees and taxes are booked; carried-forward losses are offset; the platform performance fee is calculated; broker settlement is complete and the fund holds enough available cash; customer units are frozen for the record day; and the distribution batch is approved and booked. If any one fails, the system reports that there is nothing to distribute — which is the correct answer, not a fault.

Platform performance fee: this product currently takes 30% of realized profit under a high-water-mark rule. Customer net profit after that fee currently returns 100% to the back of the queue as a new cash block; that block is queued cash, so you can withdraw it at any time or leave it for the next capital call. Both percentages are product parameters rather than fixed constants: changing either requires four-eyes approval and advance notice, and the applicable figures are those shown on the product page and in the customer agreement.

The high-water mark is tracked per customer and per unit lot, so fees are never spread between customers. In practice: a new participant pays only on gains after their own subscription; an existing participant pays nothing again after a drawdown until NAV passes their own previous high; and no fee is taken on a losing day.

If you choose “re-queue after settlement” when redeeming, the proceeds form a block at the back of the queue once settled, rather than going straight to your cash account.

Money already converted into units cannot be withdrawn as if it were queued cash. Queued cash already frozen for a capital call also cannot be withdrawn until that batch finishes.

Why units are not freely redeemable: units correspond to positions that have already been bought. Allowing unreviewed exits at any time would force the fund to sell at a bad moment and pass the cost to the participants who stayed. This product's exit rule is forced redemption only, it is written into the customer agreement, and it cannot be changed while anyone still holds units.

1. On the product page, enter the number of units, the payout choice (cash account or re-queue after settlement) and your reason. The reason is required, cannot be blank after trimming, and is limited to 1,000 characters; anything longer is rejected rather than silently truncated.
2. The request enters “pending review”. Up to this point you can still withdraw it yourself.
3. Platform acceptance: operations record a disposition note and accept the request, which becomes “accepted, under approval”. From this point the customer-side cancel option is closed.
4. Second-person confirmation: a different operator confirms, the request moves to “NAV locked, confirming”, and units are burned at the NAV confirmed that day.
5. Settlement: after the units are burned the request is “confirmed, awaiting settlement” until the fund's sale and broker settlement complete, and it finally becomes “settled”.

Zero penalty does not mean zero cost: the performance fee accrued under your own high-water mark still crystallizes, so the amount you receive may be less than units × NAV.

Payment timing depends on the market sale and broker settlement, and no specific date is promised. Once a request reaches “NAV locked, confirming” or beyond, it can no longer be cancelled.

• Principal is not protected. When the portfolio falls, unit values fall with it and you may lose your entire investment.
• Liquidity risk: units are not freely redeemable by default, forced redemption requires review, and payment depends on the market and on settlement — there is no guarantee you will have the money when you need it.
• Waiting risk: a deposit may sit in the queue for a long time before it is called, and it earns no portfolio return while it waits.
• No historical NAV or past return indicates future performance.