How to issue a fund token (Investment fund units)

1. Navigate to fund creation

Begin by accessing the fund creation interface through your dashboard's asset management section. Click Asset Management in the left sidebar, then select Funds from the asset type list to view your existing fund tokens and deployment history. The Create New Fund Token button at the top right initiates the deployment wizard that will guide you through configuring your investment vehicle's parameters.

Screenshot: Asset Management section showing Funds category with existing funds list and Create New Fund Token button

2. Configure fund parameters

Basic token information

Your fund token's identity is established through four essential parameters that define how units are represented on-chain. The token name should match your prospectus exactly, including the full legal name and share class designation—for example, "Global Growth Fund Class A Shares" ensures clear identification in investor portfolios and regulatory filings. Choose a token symbol that's concise yet meaningful, typically 3-5 characters like "GGFA" for Global Growth Fund Class A.

The decimals field determines how finely fund units can be divided, which affects minimum investment amounts and redemption flexibility. Setting decimals to 18 enables fractional ownership down to 0.000000000000000001 units, ideal for high-NAV funds or retail accessibility. For institutional-only funds where whole units are standard, decimals can be set to 0, though this limits redemption flexibility. The initial supply typically starts at 0 for fund tokens since units are minted dynamically during subscription processing rather than pre-minting a fixed amount.

Screenshot: Fund configuration form showing name, symbol, decimals, and initial supply fields with validation

Fund-specific parameters

Fund type

The fund structure you select determines the subscription and redemption mechanics enforced by your smart contract. Open-end funds allow continuous subscription and redemption at NAV, making them suitable for mutual funds and daily liquidity vehicles—the contract automatically processes requests based on your configured cut-off times and settlement cycles. Closed-end funds have a fixed capitalization with units trading on secondary markets at prices that may differ from NAV, requiring transfer restriction modules rather than subscription workflows. Interval funds blend both approaches with periodic redemption windows (quarterly or semi-annually), enforcing redemption gates automatically through the contract's time-lock mechanisms.

This structural choice impacts not only the smart contract's enabled functions but also integrates with the DALP vault system—open-end funds require dynamic vault balancing to maintain redemption reserves, while closed-end structures can optimize vault yields with locked liquidity.

Share class configuration

Fee structures are central to your fund's economics and are automated through the yield management addon. The management fee is entered in basis points (100 basis points equals 1%) and accrues daily based on the fund's AUM, calculated as (AUM × fee rate) / 365. For example, a 1.5% management fee (150 basis points) on $10 million AUM accrues approximately $410 daily, which the yield module tracks continuously. The performance fee enables carried interest or incentive fee structures with high-water mark tracking built into the smart contract—this ensures performance fees are only collected on genuine outperformance and prevents double-charging after drawdowns.

Your minimum investment amounts enforce prospectus requirements on-chain, automatically rejecting subscription requests below thresholds without manual intervention. The redemption notice period integrates with the calendar module to enforce advance notice requirements—a 5-day notice period means redemption requests enter a queue and only become processable after the notice expires, protecting fund liquidity management.

Screenshot: Fund parameters showing fund type dropdown, management fee input, performance fee toggle, and minimum investment field

NAV tracking setup

NAV calculation

Net asset value management sits at the heart of fund operations, pricing both new subscriptions and outgoing redemptions. Your initial NAV establishes the starting price per unit, typically set to a round number like 100.00 or 1,000.00 for psychological appeal and ease of percentage calculations—starting at 100 means a NAV of 110 represents a 10% gain. The NAV currency determines the denomination for all calculations and should match your fund's functional currency in the prospectus (USD, EUR, etc.).

Your valuation frequency defines how often NAV updates are required and impacts the observability metrics tracked by the platform. Daily NAV updates enable T+0 or T+1 settlement cycles and provide real-time performance monitoring through the fund metrics dashboard, where NAV history charts track performance against benchmarks. Weekly or monthly valuations reduce administrative overhead but extend settlement cycles and limit the responsiveness of the subscription/redemption queue processing.

NAV oracle

Three oracle integration patterns are supported, each with different trust and automation trade-offs. Manual NAV updates give your fund administrator full control, requiring them to post NAV values through the governance dashboard after calculating from portfolio holdings—this approach is tracked in the observability dashboard's "NAV posting latency" metric, which alerts if updates are delayed beyond your configured frequency. Oracle integration automates NAV posting from external data providers, using on-chain price feeds to calculate NAV from underlying portfolio positions—the dashboard monitors oracle health metrics including data freshness and deviation from expected ranges.

The hybrid approach combines automated oracle feeds with administrator override capability, enabling you to accept oracle values during normal operations while retaining control during market disruptions or when portfolio holdings change. The observability dashboard tracks the override frequency metric to identify patterns where manual intervention becomes frequent, signaling potential oracle configuration issues.

Screenshot: NAV settings showing initial NAV input, currency selector, valuation frequency dropdown, and oracle integration options

3. Configure subscription and redemption

Fund units require specialized issuance and withdrawal workflows that integrate with the DALP vault system for custody and settlement. These parameters directly affect your fund's liquidity management and the investor experience.

Subscription settings

Subscription process

The subscription workflow governs how capital flows into your fund and mints new units. Your minimum initial investment and minimum subsequent investment thresholds are enforced automatically by the smart contract, rejecting transactions below these amounts before they consume gas or require manual review. Setting an initial minimum of $10,000 and subsequent minimum of $1,000 is common for retail funds, while institutional share classes often require $1 million or more.

The subscription settlement cycle determines when investor capital moves from their wallet to the DALP vault and when fund units are minted to their address. T+0 settlement executes immediately upon NAV posting, ideal for liquid funds with daily valuations. T+1 or T+2 cycles provide time for compliance verification and payment confirmation, automatically queuing subscription requests until the settlement date. Your cut-off time (configured in your fund's timezone) establishes the daily deadline for same-day NAV pricing—requests received after the cut-off automatically roll to the next valuation date, eliminating manual NAV assignment and the pricing errors that plague traditional fund administration.

Payment methods

The DALP vault system requires configuration of accepted payment tokens for capital contributions. Adding stablecoin addresses (USDC, USDT, DAI) enables investors to subscribe using their preferred on-chain currency, with the vault automatically aggregating deposits for portfolio deployment. Payment token conversion rates to your NAV currency are maintained either manually or via oracle feeds, ensuring accurate unit calculation regardless of payment token choice.

Enabling multi-currency subscriptions provides investor flexibility but requires careful vault management—the liquidity dashboard tracks payment token composition and can alert when reserves become unbalanced. For example, if 80% of subscriptions arrive in USDC but redemptions require 60% USDT, the vault must rebalance to avoid settlement failures.

Screenshot: Subscription settings showing minimum investment amounts, settlement cycle selector, cut-off time picker, and payment token list

Redemption settings

Redemption process

Your redemption terms balance investor liquidity needs against fund management requirements. The redemption notice period gives your fund time to raise cash from portfolio holdings without forced selling at unfavorable prices—a 5-day notice period means investors submit requests on Monday for processing the following Monday, assuming no weekends or holidays intervene. The smart contract's calendar integration tracks business days according to your configured market calendar, automatically extending notice periods when holidays occur.

Redemption frequency can be more restrictive than subscription frequency, particularly for illiquid strategies. Setting daily redemptions provides maximum liquidity but requires maintaining higher cash reserves in the DALP vault, reducing yield on invested capital. Monthly or quarterly redemption windows are enforced by the contract's time-lock mechanism, automatically rejecting requests submitted outside the designated window and queuing valid requests for batch processing.

An early redemption fee (entered in basis points) compensates remaining investors for the liquidity costs imposed by early exits, particularly during lock-up periods. The fee is automatically deducted from redemption proceeds and either burned (increasing NAV for remaining holders) or transferred to the management fee wallet. The redemption settlement cycle controls when capital flows from the DALP vault back to exiting investors, with T+3 to T+7 being common for funds with less liquid portfolios.

Redemption restrictions

Fine-grained withdrawal controls protect both the fund and remaining investors. Your minimum redemption amount prevents tiny redemptions that create administrative burden, while the partial redemption minimum ensures investors maintaining positions keep economically meaningful stakes—requiring at least $5,000 remain after partial redemptions prevents your investor base from fragmenting into many small, uneconomic accounts.

Gates are your most powerful liquidity protection tool, automatically limiting aggregate redemptions to a percentage of total fund AUM per period. Setting a 25% quarterly gate means the contract will pro-rate all redemption requests if they exceed 25% of the fund's value, preventing a run scenario. The observability dashboard's "Redemption queue metrics" panel shows you pending redemption volume as a percentage of AUM, with alerts triggering when approaching gate thresholds.

A lock-up period enforces a mandatory holding period from initial subscription before any redemption is permitted, common in hedge funds and private funds. Setting a 90-day lock-up means the contract automatically rejects redemption requests from any investor whose first subscription settled less than 90 days ago, requiring no manual enforcement.

Screenshot: Redemption settings showing notice period, frequency, fees, settlement cycle, and restriction inputs

4. Set compliance rules

Your fund token's compliance layer enforces investor eligibility and transfer restrictions directly in the smart contract, automating what traditionally requires manual transfer agent review. These rules integrate with the OnchainID system to verify claims before permitting transactions.

Regulatory framework selection

Selecting your regulatory framework loads pre-configured compliance module templates that implement common regulatory patterns. Choosing 1940 Act configures rules for US registered investment companies, including maximum shareholder count tracking and automated prospectus delivery flags. Regulation D templates enforce accredited investor status verification and beneficial ownership disclosure requirements for private funds.

UCITS and AIFMD frameworks implement European fund regulations with built-in rules for maximum issuer concentration, eligible asset verification, and distribution restrictions across EU member states. The Custom option starts with an empty compliance ruleset for jurisdiction-specific requirements not covered by standard frameworks.

Your framework selection establishes the baseline ruleset, but every module can be customized post-deployment. This matters because regulatory requirements evolve—when new rules emerge, you can activate additional compliance modules without redeploying the entire fund contract. The compliance dashboard tracks which modules are active and logs every transaction that triggered a compliance check, providing an audit trail regulators can review.

Screenshot: Regulatory framework cards showing 1940 Act, Reg D, UCITS, AIFMD, and Custom options with investor eligibility summaries

Configure compliance modules

Investor eligibility

OnchainID claim requirements define who can acquire fund units, enforced automatically on every mint, transfer, and subscription. Requiring the accredited investor claim ensures only investors meeting SEC income or net worth thresholds can subscribe, with identity providers cryptographically attesting to this status on-chain. Qualified purchaser status (required for 3(c)(7) funds) enforces higher wealth thresholds, automatically maintained by the identity provider's periodic re-verification.

Professional investor status implements MiFID II classifications for European funds, while suitability assessment completion flags verify that investors passed a questionnaire confirming their understanding of fund risks and investment objectives. KYC/AML verification level requirements can be tiered—Level 1 for basic identification, Level 2 for enhanced due diligence on high-risk investors.

The compliance dashboard's "Investor eligibility distribution" chart shows you the breakdown of your investor base by claim types, useful for regulatory reporting. The "Failed transaction log" captures subscription attempts from ineligible addresses, helping you identify and educate investors who attempt to invest before completing verification.

Transfer restrictions

Secondary market transfer rules govern whether fund units can move between addresses outside the subscription/redemption process. Transferability can be completely disabled for funds with no secondary market, ensuring all investor changes occur through the controlled subscription/redemption queues. Enabling transfers with transfer approval means every proposed transfer queues for fund manager review, useful for private funds requiring right-of-first-refusal enforcement.

Lock-up enforcement prevents any transfers (including redemptions) during an investor's lock-up period, automatically calculated from their first subscription date. Maximum holders caps total investor count, critical for maintaining 3(c)(1) exemption status—when approaching the 99-investor limit, the contract automatically rejects new subscriptions and only permits transfers between existing holders.

These restrictions are monitored in real-time through the compliance metrics dashboard, which shows current investor count, transfers pending approval, and lock-up expiration schedule across your investor base.

Screenshot: Compliance modules showing Investor Eligibility, Transfer Restrictions, and Lock-up Period panels with configuration options

Geographic restrictions

The Country Allow List module implements jurisdiction-based access controls by requiring investors' OnchainID to assert their country of residence or citizenship. Enabling this module and selecting permitted countries ensures automatic rejection of subscription requests from restricted jurisdictions, implementing FATF sanctions compliance and UCITS distribution rules without manual screening.

For EU funds under UCITS or AIFMD, the geographic restrictions integrate with passporting rules—you can enable distribution to all EU member states with a single configuration or limit to specific countries where you've notified regulators. The compliance dashboard tracks your investor base's geographic distribution, generating reports for regulatory filings that require country-level breakdowns.

5. Assign operational roles

Operational permissions distribute control across your fund's management team through a role-based access control system. Each role maps to specific contract functions, and assigning these to appropriate wallets implements operational segregation of duties.

GOVERNANCE_ROLE

This role controls your fund's compliance configuration and investor management functions. Addresses with GOVERNANCE_ROLE can configure and modify compliance modules, ensuring investor eligibility rules stay current with regulatory changes. They approve or reject subscription requests from the queue, verify investor eligibility manually when automated checks are inconclusive, and configure redemption parameters including gate activation during market stress.

The NAV posting function is also governed by this role—only GOVERNANCE_ROLE addresses can update NAV, preventing unauthorized price manipulation. This role typically goes to your fund administrator or compliance officer wallet, and best practice is using a multisig wallet requiring 2-of-3 or 3-of-5 approvals for critical actions. The governance activity log in the observability dashboard shows every parameter change, NAV update, and subscription approval with timestamps and signing addresses for complete auditability.

SUPPLY_MANAGEMENT_ROLE

Fund unit creation and destruction occurs exclusively through addresses holding SUPPLY_MANAGEMENT_ROLE. This role mints new units when processing approved subscriptions, calculating the unit quantity based on investment amount divided by current NAV. It burns units during redemption processing, removing units from circulation and calculating payout amounts.

The supply management functions integrate deeply with the DALP vault—minting units typically follows vault receipt of subscription capital, while burning units precedes vault disbursement of redemption proceeds. The yield management addon's automated fee collection also uses this role to mint fee units to the management wallet at the configured intervals. This role typically goes to your fund operations or treasury wallet, with the transaction log in the fund metrics dashboard providing a complete audit trail of all issuance and redemption events.

CUSTODIAN_ROLE

Account-level interventions fall under CUSTODIAN_ROLE authority, implementing the fund's fiduciary responsibilities to protect investors and comply with regulatory orders. This role can freeze individual investor accounts when compromise is suspected or reported, preventing further transactions until the issue is resolved. Forced transfers execute regulatory orders such as court-ordered asset seizures, divorce settlements, or estate transfers that override normal transfer restrictions.

The unit recovery function addresses lost key scenarios—when an investor loses access to their wallet, CUSTODIAN_ROLE can transfer their units to a replacement address after proper verification. This role typically belongs to your fund custodian or transfer agent wallet, and the custodian activity dashboard logs every intervention with supporting documentation references for regulatory review.

EMERGENCY_ROLE

Market stress scenarios and security incidents require circuit-breaker capabilities. EMERGENCY_ROLE can pause all contract functions including subscriptions, redemptions, and transfers—useful when investigating suspicious activity or implementing emergency gates during extreme market volatility. The gate implementation function allows temporary reduction of redemption limits below configured thresholds when protecting remaining investors from forced liquidation of portfolio holdings.

Unpausing restores normal operations after incident resolution, and best practice is requiring multisig approval from 3-of-5 or 4-of-7 signers to prevent unilateral emergency actions. This role typically goes to your fund manager wallet. The emergency actions log prominently displays pause/unpause events in the fund overview dashboard, and regulatory reporting modules flag all emergency interventions for disclosure in periodic filings.

Screenshot: Role assignment form showing four roles with address inputs, role descriptions, and permission lists

6. Review and deploy

Pre-deployment checklist

Before executing deployment, verify every configuration parameter against your fund's offering documents and regulatory filings. Confirm your token name and symbol match the prospectus exactly, as these become immutable once deployed and appear in investor wallets and regulatory filings. Verify the fund type and share class align with your intended structure, since deploying as open-end when you meant closed-end requires a complete redeployment.

Double-check that management fee percentage entered in basis points matches your offering documents—entering 150 basis points when you meant 1.5% annual (which is 150 basis points) is correct, but entering 1.5 would result in a 0.015% fee. Confirm your initial NAV is set correctly, as subscription pricing begins from this value. Review subscription minimums against prospectus terms to ensure on-chain enforcement matches disclosed investor requirements.

Verify redemption terms including notice periods, frequencies, and lock-ups align with fund documents, since investors will expect these terms to match their subscription agreements. Confirm your compliance framework matches your regulatory filing—deploying with Regulation D modules when you filed under the 1940 Act creates immediate compliance gaps. Finally, ensure all operational roles are assigned to secure wallets with correct addresses, as role reassignment post-deployment requires governance action and can't rescue funds from mistyped addresses.

The deployment summary screen organizes all parameters into sections matching your prospectus structure, making this final review efficient. The observability dashboard will track deployment success metrics including contract initialization time and initial configuration accuracy.

Screenshot: Pre-deployment summary showing fund parameters, fees, NAV settings, subscription/redemption terms, compliance, and roles in organized sections

Deploy fund contract

Executing deployment initiates a sequence of blockchain transactions that establish your fund token and configure all subsystems. Click Deploy Fund Token to begin the process, then review the transaction details showing estimated gas costs and the deployment wallet that will sign the transactions. Enter your PIN or OTP to authenticate your identity, ensuring only authorized personnel can deploy fund contracts.

The deployment process follows a deterministic sequence displayed in real-time on the progress modal. First, the fund proxy contract deploys, taking 15-20 seconds depending on network congestion—this creates your unique fund contract address that remains permanent. Next, initialization occurs over approximately 10 seconds, writing your configured parameters into contract storage. NAV tracking configuration takes another 5 seconds, establishing oracle connections or manual update permissions.

Role assignment processes each role sequentially, spending about 5 seconds per role to write permission grants into the access control registry. Finally, identity registry registration completes in 10 seconds, linking your fund token to the OnchainID compliance system. Total deployment time typically ranges from 60-90 seconds, after which your fund contract is live and ready for NAV posting and subscription activation.

The deployment completes with a confirmation showing your fund token's contract address. This address appears in the fund registry dashboard, the blockchain explorer, and should be recorded in your operational procedures for reference. All deployment transactions are logged in the contract deployment history with complete gas costs and transaction hashes for accounting and audit purposes.

Screenshot: Deployment progress modal showing step-by-step deployment status with checkmarks and timestamps

7. Post-issuance actions

Deployment creates your fund contract infrastructure, but several configuration steps must complete before accepting investor subscriptions. These post-issuance actions integrate your fund with the DALP lifecycle features and observability systems.

Verify deployment

Begin by recording your fund contract's address from the deployment confirmation screen—this identifier is permanent and appears in all investor-facing materials, blockchain explorers, and regulatory filings. Click View Fund Token to navigate to your fund's detail page, where the system displays key metrics including current NAV, total AUM (initially zero), investor count, and fee schedule.

Systematically verify each configuration section. Check that token information shows correct name, symbol, decimals, and total supply (should be zero if you configured initial supply as zero). Confirm the management fee rate displays your intended annual percentage, not the basis points you entered. Verify NAV tracking shows enabled status with your configured valuation frequency and oracle integration (if applicable).

Review the roles section to ensure all four operational roles show the correct wallet addresses—incorrect addresses here require governance action to fix and delay your fund launch. The verification dashboard provides automated checks highlighting any configuration discrepancies or common deployment mistakes, with one-click fixes for correctable issues.

Screenshot: Fund token details page showing key metrics, NAV information, fee schedule, AUM, and investor count

Set initial NAV

NAV posting enables pricing for subscriptions and redemptions, making it essential to complete before opening for investments. Navigate to the NAV tab and click Update NAV to access the NAV posting interface. Enter your NAV per unit—this should match the initial NAV you configured during deployment for consistency, typically 100.00 or 1,000.00 for a newly launched fund.

Set the effective date and time to your fund's official launch date and time, which establishes when this NAV becomes valid for pricing subscriptions. For example, setting effective time to 4:00 PM on launch day means subscription requests received before 4:00 PM use this NAV for unit calculation. Confirm the update to write the NAV on-chain, which triggers the NAV history chart to display your first data point.

This initial NAV posting appears on your fund details page and activates the subscription queue processing logic—without a current NAV, subscription requests remain unpriceable and cannot be approved. The fund metrics dashboard begins tracking NAV volatility, update frequency, and pricing consistency metrics from this first posting forward.

Configure fee collection

Management fee automation through the yield management addon requires configuration of your fee collection wallet and schedule. Navigate to the Fees tab where the fee schedule displays your configured management fee percentage and any performance fee terms. The accrued fees amount shows zero immediately post-deployment but will begin accumulating daily based on your AUM.

Enter your fee collection wallet address where newly minted fee units will be deposited—this is typically a separate wallet from operational roles for accounting clarity. Set your fee collection frequency (monthly, quarterly, or annually) based on your fund's financial reporting cycle. Monthly collection creates more frequent small minting events, while annual collection results in one large fee issuance per year but delays management company cash flow.

The automated fee collection toggle enables the yield management addon to mint fee units automatically on your configured schedule without manual intervention. When enabled, the system calculates accrued fees daily as (AUM × annual fee rate) / 365, then on collection dates, mints units equal to total accrued fees divided by current NAV. The fee collection history in the observability dashboard tracks every collection event with unit quantities, NAV used for calculation, and USD-equivalent values for accounting integration.

Disabling automated collection requires manual fee collection execution through this same dashboard, useful for funds wanting to batch fee collection with other administrative actions or requiring additional approvals before fee realization.

Enable subscriptions

Opening your fund for investor capital requires explicitly enabling subscription processing. Navigate to the Settings tab and locate the Accept Subscriptions toggle currently showing disabled status. Before enabling, perform final verification of your subscription parameters—confirm minimum investment amounts, settlement cycle, cut-off time, and payment token addresses are all correct as configured during deployment.

Review the payment token addresses section showing all stablecoins and other tokens accepted for subscriptions. Verify each address matches the official token contract on your blockchain—incorrect payment token addresses could lead investors to send capital to the wrong contract where it becomes unrecoverable. The payment token configuration integrates with the DALP vault system, which must recognize these tokens to properly custody subscription proceeds.

Toggle Accept Subscriptions to enabled and save changes, which activates the subscription queue and begins accepting investor requests. The fund overview dashboard updates to show "Open for subscriptions" status, and investor-facing interfaces display subscription forms for your fund. The subscription queue metrics panel tracks request volume, approval rate, and time-to-settlement for performance monitoring.

Your fund is now live and operational. Investors with proper OnchainID claims can submit subscription requests that enter your queue for review and processing. The observability system begins tracking all key operational metrics including subscription flow, NAV update frequency, and compliance check pass rates across the complete fund lifecycle.

8. Manage fund operations

Daily fund operations center on processing investor transactions, maintaining accurate NAV, and collecting management fees. These workflows integrate with DALP's vault custody, yield distribution, and observability systems to automate traditional fund administration.

Process subscription requests

Subscription processing transforms investor capital into fund units through a multi-step workflow that integrates compliance verification, payment confirmation, and DALP vault custody. When investors submit subscription requests via the dApp, they enter their desired investment amount, select a payment token from your configured options (USDC, USDT, etc.), and transfer payment to the fund's subscription wallet address provided on-screen. This transfer triggers the request to appear in your Subscriptions queue awaiting administrative review.

Navigate to Subscriptions > Pending to view all unprocessed requests, organized by submission time. Each request displays the investor's identity and compliance status—green checkmarks confirm they hold all required OnchainID claims (accredited investor, KYC verification, etc.), while yellow warnings indicate pending verification or missing claims. The investment amount and payment token show the capital committed, with real-time vault confirmation showing whether payment has been received in the DALP vault.

The applicable NAV for pricing is automatically determined based on your cut-off time configuration—requests received before cut-off use the same-day NAV if available, while requests after cut-off automatically apply next-day NAV. This eliminates the pricing errors that plague traditional fund administration where manual NAV assignment creates disputes. The unit quantity calculation displays as investment amount divided by applicable NAV per unit, showing exactly how many fund units will be minted upon approval.

Click Approve to process the subscription, which triggers several automated actions. The smart contract calculates the precise unit quantity accounting for decimals, mints those units to the investor's address, records the subscription in the fund ledger with full transaction details, and updates total AUM by adding the investment amount. The investor immediately sees fund units appear in their wallet, and the subscription event appears in the transaction history dashboard with complete audit trail including NAV used, units minted, and gas costs.

Clicking Reject returns the payment tokens from the DALP vault to the investor's address (minus gas costs) and logs the rejection reason you provide. Common rejection reasons include failed compliance checks (missing claims), payment amount below minimum threshold, or maximum investor count reached. The rejected subscription dashboard tracks rejection patterns to identify common investor onboarding issues requiring documentation improvement.

Screenshot: Subscription requests table showing pending orders with investor, amount, payment token, NAV, calculated units, and approve/reject buttons

Update net asset value

NAV accuracy drives fair pricing for both incoming subscribers and exiting redeemers, making regular updates essential to fund operations. The calculation process determines your fund's per-unit value by summing all portfolio asset values (stocks, bonds, derivatives, etc.), subtracting liabilities (fees owed, operational expenses), and dividing by total outstanding units.

For manual NAV posting, navigate to NAV > Update NAV and enter your calculated NAV per unit in the value field. Set the effective date/time to when this NAV becomes valid for pricing transactions—this is typically your fund's official valuation time such as 4:00 PM ET for US funds or 5:00 PM London time for European funds. The calculation source/notes field captures your methodology and data sources, creating an audit trail regulators can review if NAV calculations are questioned.

The NAV validation engine performs sanity checks before accepting updates, preventing data entry errors that could mispriced subscriptions or redemptions. If your new NAV deviates more than your configured threshold (commonly 10%) from the previous NAV, the system displays a confirmation prompt showing the percentage change and requiring explicit approval. This catches typos where 105.50 was entered as 15.50 or decimal point errors.

Successful NAV posting updates the NAV history chart showing performance over time, triggers repricing of pending subscription and redemption requests in your queues, and logs the event in the NAV update dashboard with posting latency metrics. The observability system tracks time from valuation effective time to actual posting, alerting when delays exceed your configured threshold—for example, if your 4:00 PM NAV isn't posted until 6:00 PM, investors may perceive operational issues.

For funds with oracle integration, NAV automation reduces posting to monitoring mode. Configure your oracle data feed by connecting to price providers for your portfolio's underlying assets—the system automatically fetches prices for each holding, applies your fund's position quantities, and calculates total portfolio value. Set your update frequency to match your valuation schedule (daily at 4:00 PM, weekly on Fridays, etc.), and enable automated posting to allow the system to write NAV on-chain without manual intervention.

Monitor oracle health through the NAV tab's oracle status panel, which displays data source connectivity, price feed freshness (time since last update), and deviation from expected price ranges. Alerts trigger when oracle feeds become stale (no update in 24+ hours), show extreme volatility (price changes exceeding thresholds), or lose connectivity entirely. The oracle override function allows manual NAV posting when automated systems fail, ensuring your fund can continue operations during provider outages.

Screenshot: NAV update form showing NAV per unit input, effective date/time, calculation notes, and historical NAV chart

Process redemption requests

Redemption processing converts fund units back to capital while enforcing notice periods, gates, and liquidity management through DALP vault integration. When investors submit redemption requests via the dApp, they specify the unit quantity they want to redeem, select their desired payout token (USDC, USDT, etc.), and acknowledge the redemption notice period requirement. The request enters the Redemptions > Pending Notice queue showing the notice period countdown.

After the configured notice period expires (5 days, 10 days, etc., as you configured), requests automatically move to Ready for Processing status. Navigate to Redemptions > Ready to view requests eligible for execution. Each request displays the investor address, unit quantity to be redeemed, the applicable NAV (typically the NAV effective on the settlement date), calculated redemption proceeds (units × NAV per unit), and requested payout token.

Before processing, verify the DALP vault's liquidity wallet contains sufficient payout tokens to settle the redemption. The liquidity dashboard shows available balances for each token type, total redemption amount required for all pending requests, and the vault's overall liquidity ratio. If the vault is short on the requested payout token but holds alternatives, the vault rebalancing function can swap between stablecoins to meet redemption needs without rejecting investor requests.

Click Process Redemption to execute settlement, which triggers an automated sequence. The smart contract calculates exact redemption proceeds accounting for any redemption fees or pro-rating due to gates, burns the redeemed units from the investor's address (permanently removing them from circulation), transfers payout tokens from the DALP liquidity vault to the investor's wallet, records the redemption event in the fund ledger with complete transaction details, and updates total AUM by subtracting the redemption proceeds.

The investor sees payout tokens arrive in their wallet within one block confirmation, and the transaction appears in the redemption history dashboard showing NAV used for pricing, units burned, proceeds paid, and gas costs. For redemptions that trigger gates or pro-rating, the dashboard shows the pro-rata percentage applied and queued amount carried forward to the next redemption window.

Screenshot: Redemption requests showing notice period countdown, ready requests with investor, units, NAV, proceeds, and process button

Collect management fees

Management fee collection leverages the yield management addon to automate fee accrual and periodic realization through unit creation. The system calculates accrued fees daily using the formula (current AUM × annual fee rate) / 365, tracking the accumulated amount in the fee accrual balance. For a fund with $10 million AUM and 1.5% annual fee (150 basis points), daily accrual is approximately $410, which compounds over the collection period.

With automated fee collection enabled, the yield management addon executes collection on your configured schedule without manual intervention. On collection dates (monthly, quarterly, or annually as configured), the system calculates total accrued fees since the last collection, determines the current NAV per unit, and mints new units equal to accrued fees divided by NAV. These newly minted units transfer to your configured fee wallet address, diluting existing investors proportionally—this is the standard approach in fund accounting where management fees reduce NAV rather than requiring cash payments.

For example, if $5,000 in fees accrued over a month and current NAV is $102.50 per unit, the system mints 48.78 units to your fee wallet. The fee collection event appears in the fund history dashboard showing accrual amount, NAV used for unit calculation, units minted, and percentage dilution to existing investors. The observability system tracks fee collection frequency and calculates effective fee rate by comparing total fees collected to average AUM over the period, alerting if the effective rate deviates from your configured rate—deviations suggest NAV posting issues or calculation errors.

For manual fee collection, navigate to the Fees tab where the accrued fees amount displays the balance accumulated since last collection. Review the calculation details showing daily accrual amounts and total fees owed, then click Collect Fees to initiate the process. Confirm the fee calculation showing units that will be minted and expected dilution percentage, then execute the collection transaction.

Performance fee calculation for funds with incentive fee structures involves high-water mark tracking. The system maintains the highest NAV previously achieved by the fund, and performance fees only accrue when current NAV exceeds this benchmark. On performance fee collection dates (typically annually), calculate the gain above high-water mark, multiply by your performance fee rate (commonly 20%), and determine total performance fee amount. Mint units equal to this amount divided by current NAV to your manager fee wallet, then update the high-water mark to the current NAV for the next calculation period.

The performance fee dashboard tracks high-water mark history, performance above benchmark, and performance fees collected over time, providing transparency for investor reporting and regulatory filings that require performance fee disclosure.

Manage fund liquidity

Liquidity management ensures your fund can meet redemption obligations without forced selling of portfolio holdings at unfavorable prices. Navigate to the Liquidity tab to access comprehensive liquidity monitoring powered by the DALP vault system and observability dashboards.

The liquidity overview displays total redemption requests pending across all queues—those in notice period, ready for processing, and queued due to gates. Required liquidity for upcoming redemptions shows the capital needed to settle all maturing redemption requests in the next 7 days, 30 days, and 90 days, helping you plan vault rebalancing. Current cash/stablecoin reserves displays the DALP vault's liquid assets broken down by token type (USDC, USDT, DAI, etc.), showing immediately available settlement capacity.

Portfolio liquidity composition analyzes your fund's invested assets by liquidity tier—tier 1 for daily liquid assets (major exchange-traded stocks, government bonds), tier 2 for weekly liquid assets (corporate bonds, small-cap stocks), and tier 3 for monthly or longer liquid assets (private placements, real estate). This composition drives your redemption reserve target—funds with 80% tier 1 assets can safely operate with 5-10% cash reserves, while funds with 50% tier 3 assets may need 20-30% reserves to avoid forced selling.

The liquidity dashboard provides scenario analysis showing redemption capacity under stress scenarios—what happens if 10%, 20%, or 30% of AUM requests redemption simultaneously. These scenarios account for your configured gates, available vault liquidity, and estimated proceeds from liquidating tier 1 and tier 2 assets. Alerts trigger when projected liquidity coverage falls below your configured threshold, prompting rebalancing actions before redemption requests become unpayable.

Best practice maintains a liquidity buffer of 10-20% of AUM for open-end funds with daily redemptions, higher for funds with illiquid portfolios or concentrated investor bases where large redemptions are more likely. The vault rebalancing tool allows you to transfer capital from portfolio management wallets back to the liquidity vault, or to swap between stablecoins to match redemption payout token preferences.