Investors

Investors are users on the platform that can invest in deals listed by Originators. This page provides a summary of the various actions that investors can take on the Tradable platform.

Investing in a deal

Browse listings

After a user finishes creating their account and / or logs into the Tradable application, they will be brought to the Listings page where they can view high-level information about all of the deals that are currently listed on Tradable and open to new / future investment.

If a deal is of interest to that user, the investor can click on the deal card and be taken to a page where they can view more detailed information about the deal. Any on-chain data (e.g. deal smart contract address) will be reflected here. In addition, Tradable integrates with 3rd party services (e.g. fund admin software; shadow accounting software like iLevel, etc.) to pull in off-chain information about a deal like its ownership, performance / cash flow / repayments, covenant reporting and /or other general data. This information is relayed to investors via the UI and can help existing or interested investors better understand the health of a deal.

Please note, the deal's data room will be inaccessible, and all information about the deal will be anonymized until that investor has been approved deal access and signs an NDA with the originator for the deal.

Sign NDA & submit request for deal access

If an investor would like to view de-anonymized information about the deal and be able to access the deal's data room, they will be required to sign an NDA with that deal's originator and/or may even need to submit an additional request for deal access (assuming they've already signed an NDA with that originator).

Once the request is submitted, the originator will promptly review that investor's request and may elect to let that investor in. Once approved, investors will be able to view de-anonymized information about the deal, access the deal's data room and make an investment offer.

Investment process

In a primary syndication, the deal's originator has control over who's able to invest in the deal.

The typical primary syndication investment process is as follows:

• The investor makes an offer to invest in the deal and notifies the originator on how they would like to fund their investment (either via wire or wallet). Investors will be able to view the status of their offers in their portfolios.

• The originator is notified of the offer, and either rejects, accepts with modifications or fully accepts the investor's offer.

• If the offer is fully or partially accepted, the investor is notified and is asked to return to the platform to finalize their commitment.

• If the investor hasn't previously pre-funded their offer via wallet, the investor will determine the fund entities (if applicable) and bank accounts they would like to use to send / receive funds in the deal.

• The investor reviews the investment details and signs the deal's subscription document to finalize their commitment to invest in the deal.

For deals that are currently closed to new investment, users will be able to join a waitlist and be notified by the originator if / when any deal allocation becomes available in the future.

Deal funding for on-chain investors

When an investor elects to fund an investment via wallet, they are required to pre-fund their offer with USDC. Pre-funded offers are received to the deal's smart contract and remain there until the offer is finalized and/or withdrawn by the investor.

If the investor's offer is rejected (or partially rejected), funds will be immediately returned to the investor. If the investor's offer is accepted (or partially accepted), the investor is notified to finalize their commitment to the deal. Once their commitment is finalized, funds are sent from the deal smart contract to the Originator's Circle Mint account where they will be off-ramped to USD before being transferred on to the Originator's off-chain qualified custodian.

Once an investor's deal commitment has been funded and finalized, deal tokens representing that investor's ownership in the deal will be minted and distributed to that investor's wallet.

Deal funding for off-chain investors

For investors that fund their offer via wire, they will be asked to either immediately fund post-commitment finalization or gradually over time. When a capital call notice goes out, the investor will be notified of how much capital they need to send to the originator and what bank account they should send the funds to.

Once a deal has been funded, deal tokens representing that investor's ownership in the deal will be minted and distributed to a Tradable-managed wallet. Investors need to notify Tradable if they would like to self-custody their deal tokens.

All capital calls are funded by investors directly to originators and no funds are ever managed on or intercepted by the Tradable platform.

Receiving interest, principal and other distributions

Over the course of a deal, investors may receive interest payouts and other distributions. Distributions will be sent to the bank account / wallet that they have used to fund the deal.

On-chain interest payouts and principal repayments will be in USDC. Interest will be distributed via smart contract so that investors are paid by how long they held ownership in the deal over the period of time since the last distribution.

Off-chain interest payouts and principal repayments will done via wire and sent directly from the originator to the investor's preferred bank account.

When a principal repayment occurs, deal tokens will be burned and removed from circulation.

Managing your investments

Monitor your portfolio

Within the Portfolio section of Tradable, investors will be able to view the performance of all of their Tradable investments to date and review their pending offers, waitlist, and their most recent deal transactions.

For any specific deal, investors can view more detailed information about that deal, their performance in it, and any updates from the originator.

Redeem

Depending on the deal and the availability of liquidity, investors may be able to redeem their funded ownership prior to maturity.

To initiate the redemption process, deal investors can request a redemption from the originator, which may be approved or denied. When a redemption request has been approved by the originator, the investors' deal tokens will be locked in a pool for the deal while awaiting redemption proceeds.

The originator (and potentially other interested investors), as USDC liquidity providers, can deposit / remove liquidity from the deal pool at any time for the purpose of providing redemption liquidity. Assuming availability of USDC liquidity and the redemption request is accepted by the originator, the deal investor can redeem their deal tokens at par value. When deal tokens are deposited by such a redeeming investor, USDC will be exchanged for the investor's deal tokens and deal ownership will be transferred back to the originator.

In certain open-ended deals, the Originator can purchase back deal tokens from investors and remove those tokens from circulation via token burn.