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Whitelist and Cap Table Management
Investors must be added by ETH address to a whitelist to unlock the ability to request an investment. The whitelist is a key compliance feature that enables managers to accept only qualified investors that adhere to local laws.
When an investment is made in a SmartFund, the fund's smart contracts mint the correct number of fund shares at the fund's current NAV, sending the fund shares to the investor's wallet in exchange for $USDC sent to the manager's wallet, the capital account. All investments require approval to ensure the manager has time to update the NAV and accept the investor at the right share price.
Similarly, when investors wish to redeem their shares (subject to any lockup terms in the fund), they simply make a redemption request via the investor portal. The fund manager is notified and will then have 7 days to liquidate the returned shares in the fund for USDC. When the fund manager fulfills this request, the transaction will burn the liquidated fund tokens and return the corresponding amount of USDC to the investor.
Between investment and redemption, managers confirm the net asset value of the fund with a transaction at an interval of their choosing updating each individual LP's portfolio value and creating an immutable audit trail.
As a result, cap tables are both protected by whitelist and always live and up to date.