Fund Lifecycle
Each fund created on PolyFund follows a defined lifecycle with specific stages and capabilities.
At a Glance
| Fund Stage | Deposits | Withdrawals | Trading |
|---|---|---|---|
| Open | ✓ | ✓ | ❌ |
| Trading | ❌ | ❌ | ✓ (manager only) |
| Closed | ❌ | ✓ | ❌ |
Fund Creation Stage
When creating a fund, the fund creator can customize various parameters:
- Trading Start Time: When deposits stop and trading commences
- Trading End Time: When the fund will exit its trading stage and move towards its completion
- Deposit Fee: AUM fees charged by the manager (capped at 3%)
- Performance Fee: Percentage of profits allocated to the fund manager in case the fund turns a profit (capped at 30%)
Fund Lifecycle Stages
1. Open Stage
Once a fund is created, it enters the open stage:
- ✅ Deposits: Investors can deposit assets into the fund
- ✅ Shares: Depositors receive fund shares (minus deposit fees)
- ✅ Withdrawals: Depositors can withdraw during this period
- ❌ Trading: Fund managers cannot execute trades yet
2. Trading Stage
Once the trading start time is reached:
- ❌ Deposits: No new deposits accepted
- ❌ Withdrawals: All withdrawals blocked
- ✅ AUM Locked: Total assets under management calculated and locked
- ✅ Trading: Fund manager can actively trade on prediction markets
- ✅ Performance Tracking: Fund performance monitoring begins
3. Closed Stage
At the trading end time, the fund enters its final stage:
- ✅ Performance Calculation: Total profit/loss determined
- ✅ Fee Distribution: Performance fees distributed to manager (if profitable)
- ✅ Withdrawals: Investors can redeem their shares for USDC plus profits (minus fees)
- ✅ Completion: Fund is fully settled and closed
Timeline Example
Here's a practical example of a fund's timeline:
This structured lifecycle ensures transparency and alignment between fund managers and investors throughout the investment process.