INTERVAL FUND

Interval Fund Events

SUBSCRIPTION REPURCHASE PRORATION DIVIDEND_CASH DIVIDEND_REINVEST CAPITAL_GAIN SHARE_CLASS_CONVERSION FUND_EXCHANGE_IN FUND_EXCHANGE_OUT TRADE_CORRECTION ACCOUNT_OPENING FUND_MERGER FUND_CLOSURE REVERSE_STOCK_SPLIT RETURN_OF_CAPITAL

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Interval Fund Smart Contract Data Flows

SUBSCRIPTION (Continuous)

1. Investor submits subscription via Transactional Module.

2. Transactional Module checks Authorization Module for investor whitelist.

3. Transactional Module stores pending CASH_PURCHASE.

4. Admin calls Transfer Agent Module with NAV price at end of day.

5. Transfer Agent Module calculates shares = (cash × scale) / price.

6. Transfer Agent Module calls Fund Token to mint shares.

7. Fund Token updates investor balance.

8. Transfer Agent Module clears transaction from Transactional Module.

REPURCHASE (Periodic)

1. Fund announces repurchase period with start date, end date, and offer percentage.

2. Admin opens repurchase window in Transactional Module.

3. Investors submit repurchase requests during window.

4. Transactional Module stores pending CASH_LIQUIDATION with timestamp.

5. Repurchase window closes at deadline.

6. Admin calls Transfer Agent Module on repurchase processing date.

7. Transfer Agent Module reads all pending repurchases from Transactional Module.

8. Transfer Agent Module checks if total requests exceed offer limit.

9. If under limit, Transfer Agent Module burns shares from Fund Token for each investor.

10. If over limit, Transfer Agent Module triggers proration.

11. Off chain system wires USD to investors.

PRORATION

1. Transfer Agent Module sums all repurchase requests.

2. Total exceeds repurchase offer limit (e.g., 5% of shares outstanding).

3. Transfer Agent Module calculates proration factor = offer limit / total requests.

4. Transfer Agent Module adjusts each investor's repurchase proportionally.

5. Transfer Agent Module burns prorated shares from Fund Token.

6. Transfer Agent Module updates remaining requests for next repurchase period.

7. Admin communicates proration factor to intermediaries.

8. Investors receive partial redemption proceeds.

DIVIDEND_CASH

1. Fund declares dividend with record date and pay date.

2. Transfer Agent Module snapshots all holder balances at record date.

3. Admin calls Transfer Agent Module distributeDividends on pay date.

4. Transfer Agent Module calculates each holder's dividend amount.

5. Transfer Agent Module emits DividendDeclared event per holder.

6. Off chain system wires cash to shareholders electing cash.

7. No shares minted or burned.

DIVIDEND_REINVEST

1. Fund declares dividend with record date and pay date.

2. Transfer Agent Module snapshots all holder balances at record date.

3. Admin calls Transfer Agent Module on pay date.

4. Transfer Agent Module calculates dividend amount per holder.

5. Transfer Agent Module calculates reinvest shares = dividend amount / NAV.

6. Transfer Agent Module calls Fund Token to mint reinvest shares.

7. Fund Token updates holder balances.

8. No cash leaves fund.

CAPITAL_GAIN

1. Fund declares capital gain distribution with record date.

2. Transfer Agent Module snapshots holder balances.

3. Admin calls Transfer Agent Module on pay date.

4. For cash election holders, off chain system wires proceeds.

5. For reinvest election holders, Transfer Agent Module mints shares.

6. Transfer Agent Module emits CapitalGainDistributed event.

SHARE_CLASS_CONVERSION

1. Investor requests conversion from Class A to Class I.

2. Admin verifies investor eligibility for destination class.

3. Admin schedules conversion for repurchase processing date.

4. Transfer Agent Module burns Class A shares from Fund Token.

5. Transfer Agent Module mints equivalent Class I shares.

6. Fund Token updates balances in both share classes.

7. No taxable event triggered.

FUND_EXCHANGE_OUT

1. Investor requests exchange from Interval Fund A to Open End Fund B.

2. Admin verifies both funds in same family.

3. Exchange must coincide with repurchase processing date.

4. Transfer Agent Module burns shares from Interval Fund A.

5. Transfer Agent Module calls Fund B Token to mint shares.

6. Both transactions linked to prevent partial execution.

7. Net settlement via NSCC if using Fund/SERV.

FUND_EXCHANGE_IN

1. Investor requests exchange from Open End Fund B to Interval Fund A.

2. Admin verifies both funds in same family.

3. If Interval Fund A continuously offered, exchange processes daily.

4. Transfer Agent Module burns shares from Fund B.

5. Transfer Agent Module mints shares in Interval Fund A.

6. Fund Token updates investor balance.

TRADE_CORRECTION

1. Intermediary identifies missed repurchase deadline.

2. Intermediary submits correction request to Transfer Agent.

3. Transfer Agent Module checks fund as of policy.

4. If correction crosses dividend period, request denied.

5. If correction causes NAV error, request denied.

6. If correction would trigger proration retroactively, request denied.

7. If approved, Transfer Agent Module processes as of transaction.

8. Intermediary assumes market risk for price changes.

ACCOUNT_OPENING

1. Investor completes KYC/AML off chain.

2. Compliance verifies identity.

3. Admin calls Authorization Module to whitelist investor address.

4. Authorization Module adds investor to shareholder registry.

5. Investor can now subscribe to fund.

FUND_MERGER

1. Board approves merger of Fund A into Fund B.

2. Admin announces merger with effective date.

3. On effective date, Transfer Agent Module reads all Fund A balances.

4. Transfer Agent Module calculates exchange ratio.

5. Transfer Agent Module burns all Fund A shares.

6. Transfer Agent Module mints equivalent Fund B shares.

7. Fund A Token deactivated.

8. Shareholders now hold Fund B.

FUND_CLOSURE

1. Board approves fund liquidation.

2. Admin announces closure with final repurchase date.

3. All pending subscriptions rejected after announcement.

4. On final date, Transfer Agent Module burns all shares.

5. Fund Token totalSupply goes to zero.

6. Off chain system distributes liquidation proceeds to all holders.

7. Fund Token contract deactivated.

REVERSE_STOCK_SPLIT

1. Board approves reverse split ratio (e.g., 1:10).

2. Admin calls Transfer Agent Module processReverseSplit.

3. Transfer Agent Module reads all holder balances from Fund Token.

4. Transfer Agent Module calculates new balance = old balance / ratio.

5. Transfer Agent Module handles fractional shares (cash out or round).

6. Transfer Agent Module burns excess shares.

7. Fund Token updates all holder balances.

8. NAV per share increases proportionally.

RETURN_OF_CAPITAL

1. Fund declares return of capital distribution.

2. Transfer Agent Module snapshots holder balances at record date.

3. Admin calls Transfer Agent Module on pay date.

4. Off chain system wires return of capital to holders.

5. No shares minted or burned.

6. Shareholder cost basis reduced for tax purposes.

7. Transfer Agent Module emits ReturnOfCapital event.

FUND OPERATION

INTERVAL FUND REDEMPTION

1. Board of Directors Approves Repurchase Order

2. Notice of Repurchase Offer Sent to Shareholders

3. File Notice on Form N-23c-3 with SEC

4. Repurchase Request Deadline

5. Repurchase Pricing Date

6. Repurchase Payment Deadline