HEYBIT GLOBAL Discretionary Investment Solicitation Document
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• This discretionary investment Agreement solicitation document provides an explanation of the process and related details for discretionary investment to the Client prior to the conclusion of the discretionary investment agreement(“Agreement”).
• Please review the terms and conditions presented in this written document carefully prior to the conclusion of Agreement and using the service.
1. Scope and Target of Discretionary Investment Service
1) Definition of the discretionary investment service
It refers to the Company’s discretionary investment act in which all or part of investment decisions on investment products are entrusted by the Client. The Company acquires, disposes of, and manages the investment products in other known ways separately for each Client.
2) Scope of the discretionary investment service
The scope of the discretionary investment service is as follows. However, other matters about the scope of the discretionary investment service may be specified in the Agreement:
(1) Establishment of investment strategies for discretionary assets, including the Robo-Advisor strategy
(2) Types, items, quantities, and prices of investment targets
(3) Trade classification, method, and timing of investment targets
(4) Other incidental business
3) Investment targets
The investment asset, which is the target of the Company's discretionary investment service, is financial investment products which can be specified in Agreement, in consultation with the Client, as follows:
(1) Futures products listed on major exchanges that the Company finds qualified including but not limited to Binance, Huobi, OKX, Bybit
(2) Collective or discretionary investment products that follow the strategies in above, provided by Heybit Global or other investment firms
(3) Other investment products agreed by the Company and the Client
4) Pre-approval of transactions with interest
If the Company wishes to invest in assets issued by the Company and its interested parties, it will seek the approval of the Client in advance. The Company does not currently have any assets in its interest.
2. Standards and Procedures for Discretionary Investment Service
1) General criteria for the discretionary investment service
The Company offers the discretionary investment service based on our investment management philosophy and style to perform effective discretionary investment service on discretionary assets.
(1) Investment management philosophy
The portfolio is composed of strategies that are out-performing in the market and have passed multiple, robust back-test.
(2) Investment management style may include:
① Market Neutral: Hedging non-relevant market movements to gain statistical advantage of the hypotheses
② Statistical Arbitrage: Arbitraging the spread between the traditional/digital asset market as a whole and individual digital asset based on momentum and mean reversion
③ Momentum: Assumes that a certain momentum of price movements will persist in a given time frame
④ Reversion: Assumes that the significant price movements of a certain digital asset will eventually revert to the mean price
2) Discretionary investment procedures
The discretionary investment service is carried out as follows:
(1) Introduction of the Company and the discretionary investment service on the HEYBIT GLOBAL website (https://www.heybit.com)
(4) Deposit of USD Tether(USDT) to the discretionary account of the Client on the exchange
(5) Executing the investment management of the asset
(6) Collecting the early termination fees if the investment management is stopped before the 180-day cycle and/or the performance fees if profit is made during the cycle
3) Management of the Client’s assets
(1) The Client's discretionary investment assets are securely stored in the discretionary account, and the Company cannot move the investment funds at its discretion without the Client's request.
(2) The amount of the Agreement may be changed at the request of the Client, even during the term of the Agreement.
(3) The client can adjust the leverage ratio within a range of 1x to 2x and provide operational instructions to the company accordingly.
3. Avoiding Conflicts of Interest with Clients
The Company abides by the Agreement to prevent conflicts of interest with Clients and provides discretionary investment services to Clients in good faith.
4. Company’s Obligations and Responsibilities
1) Confidentiality obligations
The Company will not disclose the contents of the investment assets, management status, personal information, or any other information of the Client concerning the Agreement to any third party without the Client’s prior consent.
2) The Company’s obligation of satisfying the Client’s reasonable restrictions on the management or request of termination
The Client may place reasonable restrictions (referring to changes in the management terms, etc. as determined by Agreement on the management of discretionary assets, or may require changes in management methods or termination of the Agreement, and the Company shall be obligated to comply with reasonable restrictions or termination requests from investors unless otherwise provided in the Agreement.
3) The Company’s limit of behavior
The Company, the executives, and the employees place the best interests of the Client first and do not conduct unsound business as defined in the “HEYBIT GLOBAL’s Discretionary Investment Agreement.
5. Client Obligations and Responsibilities
1) Duty to notice
(1) The Client shall promptly notify the discretionary investment manager of any changes that may affect the Company’s provision of the discretionary investment service.
(2) The Company shall not be liable for any disadvantages arising from the failure to comply with the Client’s notification obligations.
2) Confidentiality obligations
The Client shall not disclose the content of any discretionary investment services provided by the Company to any third party during the discretionary investment service, and shall not jointly use any of the Company’s discretionary services with any third party without the prior consent of the Company.
3) Liability for discretionary investment results
Any profit and loss incurred from discretionary investment management are attributed to the Client. In the event of any loss, therefore, the Client shall not claim any or all of such compensation to the Company.
1) Discretionary investment fees
(1) The discretionary investment fees are paid by the Client to the Company separately from the Agreement price.
(2) Discretionary investment fees are collected in this category: performance fees.
2) Standard of discretionary investment fees
Please refer to the [Annex] “Discretionary Investment Fees Calculation and Payment Method” on the following matter: discretionary investment fee structure, calculation method, payment period, and fees for additional deposits.
3) Calculation period and payment method for discretionary investment fees
The discretionary investment fees are calculated based on the contract term(180 days) from the date of the first deposit and are deducted from the Client’s deposit in the managed account. In principle, the performance fees are paid subsequently on the date of the contract expiration or termination.
4) The Company may dispose of assets in a discretionary account for outstanding fees.
7. Term and Termination
(1) The term of the Agreement shall be 180 days from the date of the agreement. Without the additional manifestation of will by 14 days prior to the expiration date, the agreement price shall be the value of the assessment as of the expiration date in the event of the Company renewing the Agreement. Unless the Client expresses the intention to terminate the agreement by the above period(14 days) prior to the expiration date of the term on the service, the agreement will be automatically renewed. The terms and conditions of the Agreement shall be deemed to be the same as the original Agreement unless otherwise agreed.
(2) If the term is automatically extended, an extension Agreement is not created
2) Termination of the Agreement
The Company shall give a period of 14 days or more to the Client to require corrective measures if any of the following causes occur and may terminate the agreement if the Client fails to take appropriate action. However, this agreement may be terminated immediately if it is evident that the Client’s breach of this agreement is impossible to correct or that the goal of this agreement is reached to an extent that cannot be met due to the severe breach of the agreement:
(a) when the management of the discretionary asset is limited by the right pledge (the creditor may hold the collateral until the debtor repays the money, and the debtor may be reimbursed for the collateral preferentially if the debtor does not repay the money) to have provisional seizure or seizure procedures on the Client’s discretionary account
(b) when the management of the Client’s discretionary account is restricted by a lawful order of a national authority due to the reasons attributable to the Client
3) Asset Transfer
The asset transfer feature makes it easy to move assets from a strategy to another strategy. Asset transfer means the cancellation of the current contract, so it follows the Fees and Termination of the Agreement. start a new strategy when applying for a transfer, Clients must agree to the terms and policy of that strategy.
8. Evaluation and Report on Investment Performance
1) The type of assets at the beginning of the Agreement and the type of returned assets at the time of the expiration
The type of assets at the beginning of the Agreement and the type of returned assets at the time of the expiration of the Agreement shall be stablecoins (USDT, USDC, etc.) at that time.
2) Method of evaluating investment performance
The investment profit rate shall be the percentage change of the net value of the discretionary assets as of the day of evaluation based on the investment principal.
3) Investment performance report
The Client is entitled to check the status of the investment such as the Assets Under Management (hereafter AUM) and the performance (the current rate of return) upon accessing the service through log-in.
Discretionary Investment Fees Structure, Calculation, and Payment Detail
Enacted on the 16 August 2023.