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Clear answers about Paravel, vault participation, fees, withdrawals, and the risks of PayFi lending.
On the 14th and 28th of each calendar month. If either date isn't a Business Day in Singapore, the dealing day rolls to the next Business Day.
This cycle is set to match the payment cycle of the underlying loans. Future Vaults may use a different cycle, in which case the dealing days for that Vault are published on the Interface. If we change the dealing days for a Vault after it has launched, that's a material amendment — 30 days' notice, and you can redeem first.
Three Business Days before the relevant dealing day. Requests after the cut-off roll to the next one. We will use reasonable endeavours to process sooner where liquidity allows, and ordinarily expect to, but we are not obliged to and you shouldn't rely on it having happened before.
Within three Business Days of the dealing day. We will use reasonable endeavours to pay earlier and ordinarily expect to pay within one Business Day where liquidity permits, but are not obliged to.
So the contractual worst case, ordinary route, is roughly six Business Days from request to payment.
Request an Expedited Redemption. If we accept, it's processed within three Business Days at the NAV for the day it's effected, less the 1% fee which goes to the Vault.
We may decline. We will decline if a Gate or suspension is in force, or if satisfying it would prejudice remaining Participants. An expedited redemption counts towards the Gate limits.
Yes. If requests for a dealing day exceed 10% of Vault NAV, or redemptions over the three dealing days ending on that day would exceed 25% of Vault NAV, we may satisfy requests pro rata up to the limit. The unsatisfied balance carries to the next dealing day and ranks ahead of new requests, unless you withdraw it.
These limits exist because the loans have a duration of up to about 90 days. Without them, a rush for the exit would force asset sales at a loss borne by everyone who stayed.
Yes, and the grounds are stated rather than open-ended. In summary: insufficient realisable liquidity; inability to value a material part of the assets; material borrower default or credit event; failure or freeze at a payment institution, or unavailability of a payment rail; material stablecoin depeg or suspension; smart contract or blockchain unavailability or exploit; a legal requirement or regulatory direction; or a decision to wind the Vault down.
If we suspend, we publish notice of the suspension, the ground relied on and the expected duration as soon as reasonably practicable, and update at least every 30 days. Requests outstanding when suspension starts stay outstanding unless withdrawn and are processed in order when it ends.
Where a loan defaults, is materially impaired, or can't reliably be valued, we may designate it a Side Pocket Asset and allocate it to a separate class of Vault Interests held by whoever was in the Vault at that time, pro rata.
Side pocket assets are excluded from NAV for subscription and redemption. Those interests aren't redeemable — they pay out as and when the underlying is recovered, if it is. No management fee accrues on side-pocketed assets.
The purpose is to stop people who redeem early from exiting at a NAV that ignores a loss everyone was exposed to.
Possibly. If paying in cash would materially prejudice remaining Participants, we may satisfy a redemption by transferring Vault assets instead, valued under the valuation provisions. We will consult you first where reasonably practicable.