Lockup Period
18 month lock-up period following the sellout of the token
Overview
As part of our commitment to fostering long-term value creation and ensuring the successful execution of our investment strategy, all investments in $TPEF will be subject to an 18-month lockup period. This mandatory holding period is integral to the structure of our offering and is designed to align the interests of all stakeholders, including investors, fund managers, and portfolio companies.
Objectives of the Lockup Period
Alignment of Interests:
Long-Term Focus: The lockup period encourages investors to adopt a long-term perspective, which is essential for achieving the fund's targeted returns. It minimizes short-term speculative behavior that could destabilize the fund's objectives.
Shared Commitment: By committing to an 18-month lockup, investors align themselves with the fund's strategic goals, reinforcing a collective focus on sustainable growth.
Market Stability:
Reduction of Volatility: The lockup period prevents large-scale withdrawals in the early stages of the fund, thereby reducing the risk of market volatility and preserving the integrity of the fund's asset base.
Controlled Liquidity: By restricting liquidity, the fund can better manage its capital flows, ensuring that investments are executed in a manner that optimizes returns without the pressure of meeting early redemption demands.
Strategic Asset Management:
Investment Horizon: The lockup period grants fund managers the necessary time to execute their investment strategies effectively. This includes the ability to hold investments through various market cycles, capturing value as the portfolio matures.
Operational Efficiency: With a stable capital base, fund managers can focus on making strategic decisions that prioritize long-term value over short-term gains, benefiting the overall performance of the fund.
Terms of the Lockup Period
Duration: The lockup period will commence once the fund sells out all 250,000 tokens and will last for a full 18 months.
Non-Transferability: During the lockup period, investors are prohibited from transferring, selling, or otherwise disposing of their holdings. Any attempts to do so will be deemed invalid.
Exceptions: While the lockup period is generally non-negotiable, exceptions may be made in extraordinary circumstances, such as severe financial hardship, death, or other situations deemed acceptable by the fund's governing body. Such exceptions will be reviewed on a case-by-case basis and may be subject to additional terms or penalties.
Post-Lockup Period
Upon the conclusion of the 18-month lockup period:
Redemption Rights: Investors will gain the right to redeem their holdings, subject to the terms and conditions outlined in the fund’s Offering Memorandum and Subscription Agreement. It is important to note that redemption requests may be subject to processing periods, fees, and minimum redemption amounts.
Transferability: Post-lockup, investors may transfer their holdings to other parties, provided that such transfers comply with applicable regulations and the fund’s policies.
Liquidity Considerations: Although the lockup period ends after 18 months, the fund may implement additional measures to manage liquidity, including redemption gates, exit fees, or staggered redemption schedules. These measures are designed to protect the interests of all investors and maintain the fund’s operational stability.
Investor Considerations
No Early Withdrawal: Investors should be aware that early withdrawal requests will not be entertained during the lockup period, except under exceptional circumstances. This policy is in place to protect the collective interests of all investors and to ensure the fund's strategic objectives are met.
Understanding the Commitment: By investing in
$TPEF, investors acknowledge and agree to the 18-month lockup period as a binding term of their investment. This commitment underscores the importance of the long-term vision shared by the fund and its investors.
Legal and Regulatory Compliance
The lockup period is established in compliance with relevant securities regulations and is detailed in the fund’s legal documentation, including the Offering Memorandum and Subscription Agreement. Investors are encouraged to review these documents thoroughly and consult with their legal or financial advisors to fully understand the implications of the lockup period.
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