Vaultbanc but a portion of potential periodic earnings
Posted On May 26, 2019
Vaultbanc seeks to minimize the volatility of the Vaultbank Token by supporting its value through a
portfolio of secured credit assets. In turn, the yields of the portfolio’s credit assets will be then reinvested
back into the portfolio of credit assets to attempt to increase the underlying fundamental value of each
The portfolio of credit assets will further be secured by a surety wrap to enhance stability and returns. The
Fund Manager will use artificial intelligence and machine learning to build a portfolio of secured credit
assets. Vaultbanc intends to lever the portfolio with warehouse lines of credit, secured by the portfolio of
between 4:1 and 10:1 leverage, depending on the class of assets.
Investment Objective and Strategy
The Fund’s investment objective is to provide attractive returns on invested capital through a proprietary
quantitative approach to underwriting credit assets, to be provided by Random Forest Capital. The Fund
will adhere to an investment strategy driven by data science, in which machine learning within fully nonparametric
statistical models are applied to the problem of expected gains in financial investments.
The Fund Manager seeks to identify “optimal” loans to invest in and utilizes a multistage approach to
purchase such loans. The Fund seeks diversification of its assets through investments in loans of varying
sizes and maturities, based on the type of loan. The net income earned by the Fund during any given month
shall generally be retained for reinvestment, but a portion of potential periodic earnings may be used for
distributing quarterly dividends to Vaultbank Token holders, where such dividends are approved by
Vaultbanc’s board and voting shareholders.
At its discretion, the Fund may change or use additional strategies to achieve its investment objective, and
intends to employ leverage, as further described in the Offering Memorandum.
There can be no assurance that the Fund will achieve these objectives or that substantial losses will not
Blockchain Technology Enables Efficient Liquidity for Investors
Blockchain technology has the potential to provide greater integrity, safety, security, and transparency. As
such, Vaultbanc will use the blockchain to ensure immediate transaction adjudication at low costs in hopes
of providing greater liquidity for investors.
Efficient Prepaid Debit Cards
Vaultbanc is teaming up with Volopa to provide debit cards that will be accepted worldwide, and will allow
customers to pay with cryptocurrency through traditional plastic debit cards. The account holders will be
empowered to select from multiple cryptocurrencies for use as tender, and when they initiate a transaction
(e.g. a dinner that costs $83.65), either prepaid debit cash will be used, or the holder can elect to use a
supported cryptocurrency, which will then be sold at spot price to complete the transaction. Since Vaultbanc
debit cards will be accepted at all point of sale terminals, for the first time, cryptocurrency will be able to
be used as tender for everyday purchases. Furthermore, Vaultbanc also plans to provide transaction services
for partner tokens, enabling those tokens to be used as tender.