PacARB
Introduction
PacARB is the first tokenized note offered by the PAC, backed 1:1 by Arbitrage Quantitative Investment funds. It is transforming access to Real-World Assets (RWA) for retail investors and DeFi users through our institutional-grade, yield-generating token. PacARB comes with an accumulating version whose per-token price increases as yield accrues. The price of PacARB tokens increases as the value of the underlying assets increase.
PacARB is available to qualified individuals and regions. Prior to subscription, you may be required to complete KYC (Know Your Customer) procedures. While creating PacARB in compliance with these requirements and applicable laws may impose certain limitations, the process ensures transparency and regulatory adherence. For instance, although you will begin earning interest as soon as we process your deposit, please note that the minting of your PacARB tokens will take 1-2 days (depending on the type of underlying assets).
Underlying Asset
Pacific Waterdrop Digital Asset Fund SP IV is a quantitative investment fund focused on futures and spot arbitrage strategies in the digital asset market. Established in November 2024 and registered in the Cayman Islands, the fund aims to achieve stable returns through low volatility trading approaches.
The fund implements a market-neutral strategy with fully hedged long and short positions, historically maintaining extremely low drawdowns during risk events (maximum historical drawdown < -0.6%, with a Sharpe ratio > 10). A key strength is its backing by state-owned enterprise insurance capital, providing robust safeguarding for crypto alpha generation.
The fund's strategy leverages the characteristics of perpetual futures markets, specifically focusing on contract funding rate mechanisms. Trading operations involve arbitrage between futures and spot markets based on price differentials and funding rates. The management team, Hashflow & Xenophon, has demonstrated consistent ability to capture these opportunities while maintaining strict risk management.
With a minimum initial subscription amount of USD200,000 and subsequent minimum subscriptions of USD100,000, the fund charges a management fee of 1.5% per year and a performance fee of 25% (High Watermark). The fund operates on a monthly trading frequency and includes a 6-month lock-up period, with redemption fees ranging from 0.5% (7-12 months) to 0% (after 12 months).
Features
Transparency: Real-time reserve transparency is provided by each fund administrator, offering complete visibility.
Enhanced Security: Fully collateralized by quantitative investment funds, removing risks associated with commercial banks.
Subscribe and Redeem
Onboarding
To onboard you must be eligible and complete our Know Your Customer (KYC) process, provide us with the wallet address where you would like to receive your Tokens, and sign the appropriate paperwork.
Subscribe
Once your onboarding is completed, you will receive an email or notice stating when you are eligible to invest. You can subscribe PacARB with USDC via our website at any time. (For subscription of $100k plus, contact us for more information). You will start earning interest as soon as we process your funds(typically within 2-3 business day).
Once the required waiting period has passed, your tokens will be approved to deliver and you need to claim it on the asset management page. At that point, you are free to transfer your tokens to any eligible recipient within the approved geographies.
Redeem
To initiate a redemption, you can submit your redemption request through our website at any time. Please note that redemptions are subject to the fund's lock-up period from your initial investment date. After submitting your redemption request, you can check the request status via History function.
Redemption proceeds will typically be processed within some days (depends on the settlement period of the underlying assets). after the redemption request is approved. The USDC will be transferred to your registered wallet address once processing is complete.
For redemptions exceeding $100k, please contact our team directly for special handling arrangements. All redemptions are subject to the fund's liquidity conditions and may be gated during extraordinary market circumstances to protect investor interests.
Fee
Currently we have no subscription and redemption fees. The underlying assets involve subscription fees and management fees. Please refer to the underlying assets' documentations for details.
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