HODL Prospectus – Second Mountain

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The HODL Prospectus

It outlines the Second Mountain Multi-Asset Crypto Fund, known as “HODL,” which is designed to provide investors with exposure to the cryptocurrency market while maintaining asset control through a self-custody model. The fund focuses on creating a diversified portfolio primarily consisting of the top 100 cryptocurrencies by market capitalization, with flexibility to include promising projects outside this range when exceptional opportunities arise.

Self-Custody Model:

Investors retain full ownership and control of their assets, which are securely held in personal accounts on trusted exchanges like Binance. This approach ensures transparency and security, aligning with the decentralized nature of cryptocurrencies.

Diversification:

The fund aims to build a diversified portfolio by focusing on high-performing cryptocurrencies, primarily from the top 100 by market capitalization. This strategy seeks to balance potential returns with risk management.

Risk Management:

Comprehensive strategies, including stop-loss mechanisms, rebalancing, hedging, and stress testing, are employed to protect against downside risk and manage volatility inherent in the cryptocurrency markets.

Performance-Driven:

The fund leverages the historical performance of assets like Bitcoin, which has been the best-performing asset class in eight out of the past eleven years, to inform its investment approach.

Investment Terms

Minimum Investment:

$10,000 for individuals and $30,000 for institutions.

Performance Commission:

A 10% commission is applied to profits.

Exit Terms:

Investors can exit the fund at any time without a breakage fee or lock-up period. If exiting while in profit, the 10% performance fee is automatically deducted; if exiting without profit, no fees are charged.

Risk Disclosure

Investing in cryptocurrencies carries significant risks due to market volatility. Price fluctuations can be severe, and there is potential for total loss of funds. Cryptocurrencies are not backed by any government or centralized authority, offering no protection against market downturns, regulatory changes, or security breaches. Investors are advised to consult qualified advisors before making any investment decisions.

The HODL Prospectus emphasizes Second Mountain’s commitment to providing a secure, transparent, and flexible investment vehicle for those seeking exposure to the cryptocurrency market through a self-custody model.