This is a translation of https://bitsharestalk.org/index.php?topic=26820.0 Spring BTS Fund is a BTS interior fund jointly initiated by Waterdrip Capital ( www.waterdrip.io )and Ivy Capital( www.ivycapital.com ). Fund token issuance, subscription, management, and all other operations are carried out on the decentralized exchange and the asset management platform, BitShares. The fund accounts are jointly managed by the two Capital via multiple signatures. All operations are open and transparent.The BTS that are idle within BitShares can be used for collateral to generate bitCNY. On one side, it increases the supply of bitCNY. On the other hand, it plays the role of stabilization fund as it buys BTS when the market is low and sells at a high price. The specific operation point is based on the judgment of the fund managers. Meanwhile, Spring Fund can also be used as an angel investment fund to invest in blockchain projects of the cornerstone investment when the supply of bitCNY is sufficient or the fund itself achieves a large profit, which enables fund holders to make profits continuously.BTS holders with rich investment experience, who are able to fully understand the operation mechanism of BitShares, recognize the long-term value of BTS, believe that the current BTS price is underestimated and the supply of bitCNY is in severe shortage, and hope to bring together the strength of the community to steadily increase the BTS price and bitCNY supply, expanding and strengthening the ecology of BTS smart currencies and exchanges.The fund voucher is the SPRING token issued within BitShares platform. Each SPRING corresponds to one unit of fund. The initial subscription price is 1BTS/SPRING. SPRING can be freely traded within BitShares.You can send BTS to the BitShares account, spring-team (#1019038) before 2018.07.18. The minimum sending amount is 100,000 BTS, and the minimum increment is 100,000. The subscription by directly sending BTS can be guaranteed. After the fund account receives the BTS, it will send back the original account SPRING tokens as a voucher.During 2018.07.18-2018.07.31, SPRING tokens can be purchased directly on the SPRING/BTS market at a price of 1 SPRING/BTS. The number of selling orders for SPRING tokens lodged in the fund account depends on the amount of participation in the first phase. If the first phase meets the requirements of fund operation, the second phase may no longer be placed.Minimum starting amount is 50 million BTSIf the BTS amount raised before 00:00, 2018.08.01, of Beijing time is less than 50 million, the management team will return the raised BTS and close the fund. Otherwise, the fund will start operation.The maximum amount is 200 million BTS.Two-thousandths of a quarter is used to manage staff salaries and legal compliance fees.Since SPRING tokens can be circulated in the market, all fund holders can withdraw at any time by selling SPRING on the market.The net value will be calculated at the end of each month of the first quarter, and the purchasing will be opened at the beginning of next month.The purchasing and redeeming time is fixed once a quarter, when the fund managers will repurchase SPRING tokens on the SPRING/BTS market. The amount of BTS used for repurchasing is determined by the managers and the minimum is 10% of the total net value of the fund. At the same time, SPRING is also sold on the SPRING/BTS market for purchasing.The “average daily price” described below refers to the average price from 0:00 to 24:00 of Beijing time in addition to special instructions.In the initial fundraising period, the initial net value is calculated according to the daily average price of the BTS/bitCNY transaction pair within BTS on the day when the fundraising amount reaches 50 million BTS.At the end of each month of the first quarter, the daily average transaction price of the BTS/bitCNY transaction pair within BTS on the last day of the month is used to calculate the net value as the basis for the purchasing price.The fund settles quarterly. The daily average transaction price of the BTS/bitCNY transaction pair within BTS at the last day of the quarter is used to calculate the BTS net increase A and the bitCNY net increase B.Max (Min (A*10%, B*40%), 0) is taken as the fund retention ratio, and the rest as the net value increases. The retention fee will be awarded to the fund management personnel by issuing additional SPRING.Specifically, first compare 10% of the increase in the net value of BTS and 40% of the increase in the net value of bitCNY, and then take the smaller value. If either of the two numbers is below 0, only a two-thousandths of the management fee will be charged.For example,Case 1: If the current BTS price is 1 yuan and the initial value of the fund is 50 million BTS, and the BTS price becomes 1.5 yuan one quarter later with the fund owning 70 million BTS and 20 million debts at the time, then the net value of BTS is 7000-2000/1.5=56.67 million BTS, and the net value increases 6.67 million BTS. The net value of bitCNY is 7000*1.5-2000=85 million bitCNY, and the net value is increased by 35 million bitCNY. The smaller of the two is based on BTS, so the fund retention fee is 6.67 million * 10% = 667,000 BTS. At the same time, at the end of the quarter, the fund will place at least 5.67 million BTS repos on the market.Case 2: If the current BTS price is 1 yuan and the initial value of the fund is 50 million BTS, and the BTS price becomes 0.8 yuan one quarter later with the fund owning 80 million BTS and 10 million debts at the time, then the net value of BTS is 8000-1000/0.8=67.5 million BTS, and the net value increases 17.5 million BTS. The net value of bitCNY is 8000*0.8-1000=54 million bitCNY, and the net value is increased by 4 million bitCNY. The smaller of the two is based on bitCNY, so the fund retention fee is 4 million bitCNY * 10% = 1.6 million bitCNY. At the same time, at the end of the quarter, the fund will place at least 6.75 million BTS repos on the market.Case 3: If the current BTS price is 1 yuan and the initial value of the fund is 50 million BTS, and the BTS price becomes 0.9 yuan one quarter later with the fund owning 60 million BTS and 10 million debts at the time, then the fund is in a loss whether calculated in BTS or in bitCNY, so the fund retention fee is 0. At the end of the quarter, meanwhile, the fund will place at least 5 million BTS to repurchase SPRING on the market.Spring Fund will establish a witness and organize professional and technical personnel to maintain it. If it is elected, the income will be transferred to the fund account as a net increase after deducting the maintenance personnel's remuneration.