What is the Apis Token?
The Apis Token is the first tokenized hedge fund strategy, focused on an algorithmic, signal based volatility trading strategy, with a proven track record. The Apis Token is built on Stellar, the most efficient, secure and fastest blockchain protocol currently available.
This is not an offering of securities. For specific details about the offering of the Apis Token, please visit below:
Currently, Apis Token is available to non-U.S. Investors only and U.S. Investors should not attempt to purchase Apis Tokens through any exchange.
How does the strategy generate profits?
The strategy, managed by Apis Capital Management, focuses on trading volatility in the S&P 500 Options and VIX Futures markets, taking advantages of psychological patterns identified through careful market analysis based on 15 years of trading experience and incorporated into an AI-driven algorithmic strategy. In general, the strategy sells volatility risk premium in VIX futures and equity risk premium in S&P 500 options, dynamically rotating between two complementary algorithms giving it the possibility to achieve profits in multiple market scenarios, including down, up and sideways markets.
Disclaimer: The strategy trades instruments that are liquid, but volatility, and unforeseen events can result in quick changes in the price of both VIX futures and S&P 500 options. If the strategy is positioned in the opposite direction of the sudden movement, substantial losses can occur. There is substantial risk of loss, and past performance does not guarantee future results.
What is the track record?
The strategy powering the Apis Token has been actively trading since March 2015. It has an audited track record since January 2016, when it was officially launched as the ECM Income Opportunity Fund, and then subsequently from January 2018 as the ACM Market Neutral Volatility Strategy Fund.
The strategy has been internationally recognized as a leading hedge fund strategy:
Awards and Recognition - As of December 2017
- Ranked #4 out of 540 listed funds by 3-year Return
- Ranked #5 Fund by YTD Return (out of 540 listed Funds)
- Ranked #1 of 62 Option Strategy Fund by YTD Return
- Ranked #3 of 197 Overall Hedge Funds between $1MM and $10MM AUM by YTD Return
- Ranked #3 Niche Strategy Fund by 2017 Return
- Ranked #4 Overall Funds 2017 return (Out of 300 Listed funds)
- Preqin Top Performing Hedge Funds in 2017
Disclaimer: Investments have a risk of loss. Past performance does not guarantee future results. Investments lose value.
What is the process to invest?
Apis Token is available to non-US investors only. Each moth, the Apis Token will be priced at an “Offering Price” determined by the Manager at the beginning of the month and adjusted +/- for the performance of the Fund during the month. The funds collected will be invested on the 1st day of the next month and Tokens issued to Tokenholders on that day.
Why is investing in the Apis Token better than investing in the fund directly?
While Apis Capital Management has accepted and will continue to accept direct investment into the ACM Market Neutral Volatility Strategy Fund as Limited Partners, investors can benefit from multiple advantages of investing in the Apis Token.
- Investors will be able to have full liquidity of their Apis Token by being able to trade it peer to peer on the Stellar DEX (please note, purchase by or sale to US persons who are non-accredited investors is currently prohibited, Apis Token holders are responsible for following these rules)
- There are no minimum investment requirements for Apis Token, whereas the ACM Fund is limited to $250,000 or more
- The Apis Token benefits 100% from the profits generated by the strategy and is not subject to the 2% management fee and 20% incentive fee charge to ACM Fund LP investors. Investors benefit from compounding, resulting in returns 350% higher over 10 years (which includes the effect of the 20% allocation to management)
- Investors should note that the allocation of 20% to management at token issuance is equivalent to a 20% sales charge. Therefore each $1 invested will be initially worth $0.80.
Are there any restrictions for investing in Apis Tokens?
The Apis Token is currently available for investment only by non-US investors (except those in North Korea, Syria, Cuba and Iran), subject to KYC/AML verification.
How will the Apis Token increase in value?
An investor holding an Apis Token has a right to redeem, at regularly scheduled intervals, their tokens for the pro-rata share of the Investment Balance Value . Investors can request their redemptions to be paid in $USD, WSD, BTC, ETH or XLM. As the underlying strategy earns profits, these are allocated to the Investment Balance, which grows, while the supply of tokens remains the same (because Apis Tokens are only issued when investment funds are received from investors). Similarly, if the Investment Balance decreases, the Apis Token may lose value.
For Example: If an investor invests $1,000,000. The investor will receive 1,000,000 in tokens, and the advisers will receive 200,000 in tokens. Therefore, the initial Investment Balance is $1,000,000 and there are 1,200,000 Apis Tokens issued, each Apis Token is redeemable for $0.80 in $USD or WSD, or $0.80 worth of BTC, ETH, XLM or USD. In the next month, if the strategy earns $500,000 in profits, the Investment Balance now has grown to $1,500,000 which now entitles every Apis Token holder to $1.25 per Apis Token. Conversely, if the strategy loses $500,000, the Investment Balance decreases to $500,000 each Apis Token will be worth $0.41
Where can I trade the Apis Token?
Investors can trade the Apis Token anywhere they are legally permitted to. Currently, the Stellar Decentralized Exchange has listed the Apis Token and we expect others to soon.
- Please note, purchase by or sale to US persons is currently prohibited, Apis Token holders are responsible for following these rules)
What does the Apis Token actually entitle me to?
The Apis Token holder is entitled to redeem the Apis Token for the pro-rate share of the Investment Balance, which grows as the trading strategy generates profits.
How do I redeem my Apis Tokens?
Investors are able to redeem Apis Tokens at regularly scheduled intervals (currently set at 12 months from initial issuance) by making a redemption request to Apis Capital Management not less than 30 days before they wish to redeem their tokens. The investor will then send the quantity of Apis Tokens they wish to redeem and specify the method of payment for their redemption. At the redemption date, the investors will receive the pro-rata share of the Investment Balance on that date.
What can I redeem my Apis Tokens for?
Investors currently may redeem Apis Tokens for $USD, WSD, BTC, ETH and XLM, although additional currencies will likely be supported later.
How do you secure my information?
We take our investors' privacy very seriously, and adhere to strict standards to protect it. We are required to verify our investors' KYC/AML information, which involves reviewing their identification information. We are able to receive your information via email attachment on our secured server, or through any secure means that you wish to use.
We only collect the information required and do not use it for any other purpose. We do not share, sell or permit anyone to view your identification information unless we are required to do so by a valid court order issued by the court having jurisdiction.
Furthermore, after your our identification documents are verified, they are immediately destroyed from any online location (such as our email server). They are transferred to a secure, cold storage, that is encrypted and airgapped, as it is not needed to be viewed after verification but only stored to comply with KYC/AML regulations.
By registering, you also agree that we may email you from time to time regarding important information about Apis Token. Your email address information is secured and encrypted, and is also not shared, sold or viewable by a third party.
As a result, we are also GDRP compliant since the data we collect is only for permissible business and legal use, and is not used for marketing or shared with third parties. Since it is only used for those purposes, you may not opt out of our storing of your data.