Every manager can use a percentage of Betoken's AUM (Assets Under Management - The money deposited by our investors) and invest that money by trading crypto-assets supported by Betoken.
This trade decision to buy and sell an asset is called a manager investment.
Managers can make investments simply by clicking the Make Investment button at the top right of the Betoken App.
This button will open a pop-up where the manager can choose the token they want to invest in and the amount of Kairo - our custom token representing the investing merit of each fund manager - they want to stake to invest in the selected token.
Managers actively managing the Betoken's funds are rewarded with monthly commissions.
If the price of the asset traded by the manager goes up, you're rewarded with more Kairo - our custom token representing the investing merit of each fund manager. More Kairo means more monthly commissions, as well as more money you can use for investing.
Managers are rewarded with commissions for all the profitable investments they have made for the fund in the current management phase (27 days). The more profitable investments a manager makes, the more commission they receive.
All commission amounts are relatives to the Assets Under Management (AUM). After the management phase is over (every 27 days):
20% of total Betoken's monthly profits is set aside as commission and distributed among Kairo holders proportional to the amount they hold.
A certain proportion of fund assets (0.1%) is also set aside and distributed among Kairo holders.
To bring you more precision, the 0.1% commission is calculated in real time. The 20% commission is taken into account if the fund is profitable. It's also the reason why in the Betoken App, your estimated commissions is just a raw estimation. Managers can choose to receive their commission in either DAI stable coin or Betoken shares (BTKS).
Managers can make investments during the management phase (27 days) of each Betoken's cycle (30 days).
Betoken liquidates all of its assets every 27 days to allow for new investors and traders to join the fund and for existing investors to withdraw their money from the fund. Managers are required to sell all their investments at the end of each cycle for the above mentioned liquidation to happen.