New Tokenized Funds

We are proud to announce that we will be launching two new, tokenized funds aimed at providing the independent investor with diversified exposure to early stage cryptocurrency investments and the best performing cryptocurrencies in the top market cap rankings.

Invictus Kinetic Fund

The Invictus Kinetic Fund is the first open, passively managed tokenized fund to be launched by Invictus Capital. The Kinetic fund leverages our expertise in machine learning in the creation of a dynamic, algorithmically rebalanced fund designed to navigate the constantly changing cryptocurrency market.

At the heart of this fund is the Kinetic function that strictly defines its governing rules, enabling it to increase positions in tokens exhibiting growth, while closing positions in tokens in decline, all without being subject to human bias, emotion and interference.

Many independent investors find themselves exhausted and emotionally depleted from trying to manage a portfolio of cryptocurrencies in a market that never sleeps. We aim to offer peace of mind in turbulent times.

As a passively managed fund, use of the Kinetic function allows the fund to navigate the shortcomings common to more basic funds, while still benefiting from the low fee structures characteristic of passive funds.

The Kinetic function continuously processes a stream of market data. The seven parameters and three hyper-parameters of the Kinetic function have been optimized by machine learning and back-tested over past market data.

The full function, underlying mathematical model and backtest results will be described in detail in the whitepaper release on the 23rd of March, 2018.

The fund utilizes a variety of kinetic indicators characteristic of a given cryptocurrency’s performance relative to the rest of the market to assign it a score. Ranking the 100 largest cryptocurrencies by their Kinetic score results in a Kinetic Rank. This rank is then used to create the Invictus Kinetic fund by selecting the top cryptocurrencies in the Kinetic Rank weighted by their Kinetic score. The fund is rebalanced at fixed periods.

Over the coming years, we can reasonably expect there to be considerable changes within the market cap rankings of the 100 largest cryptocurrencies. Smaller market cap cryptocurrencies will likely rise steadily up through these rankings — naturally an investor would want to be able to identify these rising stars and capitalize on their growth by investing in them early on.

Similarly, over time we expect to see some of the historic top performers, those cryptocurrencies that have exhibited meaningful, even meteoric, growth in their market capitalization to date begin to exhibit decline relative to the growth of the rest of the market. Even more, some of the cryptocurrencies with the largest capitalizations may be displaced by the rising stars who disrupt their business model or use cases, possibly causing them to plummet into obscurity.

In these scenarios, it would be favorable to divest from these assets early in their decline to realize the returns from their previous growth, and to avoid the loss associated with holding a declining asset.

We have realized the high demand for investment structures that provide broad exposure to the cryptocurrency market. The team at Invictus looks forward to rolling out this fund, providing token holders with a vehicle for investing in the top performing cryptocurrencies.

Kinetic Fund Token Structure and Fund Utilization

Annual Management Fee: 0.75 %

Token Structure: 1.5% of tokens for team, 1% for Invictus Capital, vesting over two years. 97.5% to ICO participants

Fund Utilization: 1% of funds raised for operational expenses, 99% for purchasing underlying assets

Token Price: $0.10 per token at live exchange rate from BTC/ETH/LTC

Hard Cap: None — open-ended fund

Soft Cap: $2M

Invictus Hyperion Fund

The Invictus Hyperion fund is a closed, tokenized venture capital fund designed to function as a syndicate for investors looking to gain exposure to the earliest stage of blockchain investing.

The Hyperion fund will focus on early-stage investments in blockchain technology. The fund will not invest or trade in projects that already have a listed token.

The fund will operate with Invictus’s typical data-driven investment methodology. Predictive models and tools like the Invictus Titan will be utilized to determine the potential of investment opportunities.

The blockchain revolution has ushered in a new era in the financial sector, but it has also left many feeling overwhelmed. Independent investors are simply unable to allocate the time, energy and mental bandwidth required to understand and navigate all of the new investment opportunities — and traps.

The fundamental attributes of blockchain technology are being leveraged in profound new ways, changing how our society operates, disrupting old conventions, and creating new ways to do things that were never before possible. These attributes present a foundation for value creation providing the potential for significant returns on investment.

Development of new investment protocols like Initial Coin Offerings (ICOs), token pre-sales and Simple Agreements for Future Tokens (SAFTs) have redefined and democratized early stage investing. Independent investors now have the opportunity to invest in projects across the globe while they are in their infancy — investment opportunities that historically were only available to wealthy accredited investors and first-world venture capitalists.

While these changes, enabled by blockchain technology, have provided people with access to a wide array of new investment opportunities, they have also exposed people to the significant risk of early stage investing. The undertaking to perform the necessary due diligence to make informed investments has become onerous.

Even though blockchain technology has transformed the early stage investment landscape, the independent investor still faces barriers. Large bonuses or discounts are often offered exclusively to very early investors or partners with significant capital and connections to the project. Through the power of syndication, the Invictus Hyperion fund has been designed to break down these recalcitrant barriers facing the independent investor.

In time, a portion of the returns realized from the sale of tokens will be paid out to token holders as dividends with a remainder being reinvested in new blockchain projects, repeating the investing cycle.

Distributions of quarterly returns after the Hyperion fund has grown beyond its dividend activation threshold.

The investment analysts at Invictus will actively solicit and evaluate funding applications from entrepreneurs, performing extensive due diligence in the vetting process. Our analysts will leverage the power of Invictus’s Titan AI tool (detailed below) to evaluate proposals and gain additional insights into factors influencing the success of early-stage blockchain investing.

The Hyperion fund will offer simplified access to early stage investing in a broad, vetted portfolio of promising blockchain projects. Entrepreneurs in need of pre-ICO support in the range of $0.25M to $1M can already apply through the funding application portal at InvictusCapital.com.

Hyperion Fund distributions

Annual Management Fee: 0%

Token Structure: 1.5% of tokens for team, vesting over two years.

Fund Utilization: 1% of funds raised for operational expenses

Performance Fee: 12.5% of returns realized within each quarter with the remainder re-invested into the fund

Token Price: $0.10 per token at live exchange rate from BTC/ETH/LTC

Hard Cap: $10m

Soft Cap: $2m

Dividend Phase Activation: Dividend payments will be activated once the fund has grown to an invested portfolio of $30M.

In the Dividend Phase: 50% of returns realized within each quarter will be paid to token holders, a 12.5% performance fee will be leveraged by Invictus and the remainder of 37.5% will be re-invested into the fund.

Titan AI Tool — Making Our Community a Safer Place

Beyond our commitment to providing responsible and professional cryptocurrency management services and products, we are excited to announce the release of the first stage of our Titan AI tool. The tool analyzes ICO white papers and is capable of identifying plagiarized content — Titan is even capable of detecting cases where plagiarized content has been restructured and synonym substitutions have been made.

We have already indexed thousands of ICO white papers for comparing white papers against — but as users upload papers, this corpus will grow automatically. With this tool, we aim to empower users to make more informed investment decisions and help to form a community driven watchdog service.

The second stage of the Titan tool will provide users with a visual representation of the degree to which an ICO is related to others in terms of their business model and sector. This is performed using Artificial Neural Networks and doc2vec pre-processing, along with Latent Dirichlet Allocation to create abstract representations of white papers, that are then clustered using t-distributed stochastic neighbor embedding (t-SNE).

Consequently, Titan empowers users, and Invictus’s analysts, with the ability to evaluate the originality and legitimacy of early-stage investment opportunities within the ICO space and specific sectors thereof. The second stage will be released in the first week of March.

Titan is an example of the company’s commitment to legitimizing the broader cryptocurrency community, in this case, by rooting out frauds and copycat projects.

Access the Invictus Titan here.

Whitelist for the ICOs of Our New Tokenized Funds

The funds will begin to raise in April — the exact dates will be announced when the whitepapers are released on the 23rd of March 2018 at 18h00 GMT.

The funds will open to the public after a short initial phase dedicated to the below two groups. For priority access to our new funds you will need:

A.) To be an investor in the CRYPTO20 ICO.

OR

B.) Prove ownership of more than 500 C20 tokens using our verification tool. The justification for this amount is that it is approximately the median investment in the CRYPTO20 ICO.

As always, we look forward to, and welcome your feedback.

If you have any queries, we are here to assist you! You are welcome to join our Discord channel for live support or to email us at info@InvictusCapital.com.

Thank you for your support so far — we hope to keep building on our trusted relationship with the broader cryptocurrency community. We expect greater mainstream adoption in 2018 — it is set to be an exciting year and we look forward to helping bring further transparency and legitimacy to the space.

Kind regards,

Daniel & the Invictus Capital team