Hi Christian,
Good to meet here again 
Let me try to address your questions:
- How will you ensure that the Anemoy Liquid Treasury Fund I (the “Fund”) is not subject to the insolvency risk of Anemoy Ltd. or Anemoy (BVI) Management Ltd.?
Under BVI law, shares of funds are treated as a different class of shares separate and apart from the ownership shares of Anemoy (BVI) Management Ltd owned by Anemoy Limited. On a liquidation of a fund company, the BVI Insolvency Act 2003 applies with one modification in that a liquidator is required to observe the provisions for segregating assets and can only apply assets of a particular segregated portfolio to those entitled to have recourse to that segregated portfolio.
- The NFT appears to represent an interest in the shares of the Anemoy Liquid Treasury Fund I. I assume that Anemoy will provide a copy of the fund agreement?
No, each NFT will represent a specific T-Bill (segregated by CUSIP / ISIN) purchased by the fund. These comprise the AUM of the fund and the value of each determines the NAV of the pool. The pool itself is a tokenized fund under BVI law. The tranche tokens are fund shares held directly by the investors. The token holding itself has legal meaning, which is a major difference with other similar products in the market. The fund subscription agreement will be shared with offering material as soon as the fund registration is approved by the BVI Financial Services Commission.
- Please confirm that the Fund will acquire T-Bills and not an ETF comprised of T-Bills.
Yes
- Please describe the Fund’s exposure (if any) to the insolvency risk of Celadon. Are the T-Bills maintained in segregated accounts for the benefit of the Fund? Will any other persons have a claim on such T-Bills?
Like all other US broker-dealers and pursuant to UCC Article 8, brokers do not become owners of the securities they hold for their clients. Accordingly, upon a liquidation of Celadon, under SIPC guidance, the trustee will restore access to securities held by the broker-dealer to its clients so that the portfolios can be transferred to a solvent broker-dealer. In addition, cash held by broker-dealers will be guaranteed by the same Securities Investor Protection Corporation (SIPC).
- It will be helpful to describe the redemption process in a bit more detail - particularly if the Fund holds T-Bills (compared to ETFs comprised of T-Bills).
Investor locks a redemption order in Centrifuge > Anemoy instructs Celadon to sell the appropriate number of T-Bills > Celadon confirms trade and transfers proceeds to Anemoy bank account > Anemoy bank forwards USD proceeds to the exchange agent > exchange agent exchanges USD to USDC and sends USDC to the Centrifuge pool where it burns the regarding NFTs and transfers value of redemption in USDC (minus management fees and expenses) to the investor.
6a. It is mentioned that investors will have an opportunity to access “US Treasuries yield”. How will this be achieved as the U.S. Treasury issues T-Bills at a discount to their face value?
As is well-known, the US Treasury pays interest on T-Bills. The interest is paid at maturity so the fund will accrue interest as its investments mature. Investors in fund shares will similarly accrue interest on their fund shares pro rata.
6b. The U.S. Treasury does not pay current interest. How will the Fund calculate “interest” given daily redemptions?
For the calculation of the accrued interest, Centrifuge NFTs have the parameters of a specific set of T-Bills (price, tenor, interest) that using a simple discounted cash flow model results in an NAV of the pool of NFTs (the fund’s AUM). There will be minor discrepancies between the NAV and trading when T-Bills will be bought and sold but this will adjust the NAV as soon as the regarding NFTs are minted/burned and a negligible issue. The Centrifuge pool NAV is comparable with an ETF, except that the BVI legal structure gives investors a real claim on the T-Bills by owning a token including the possibility of redemption in kind (one of the advantages of the structure).
Investors can request a redemption every day; the processing time will be usually around 8h to 48h but not more than 7 US business days.
- How will the Fund determine which T-Bill term to purchase? T-Bills are issued in maturities of 4, 8, 13, 17, 26, and 52 weeks.
It will be diversified and balanced considering fund management efforts and typical redemption cycles. Accrued interest cannot be lost as transactions in the secondary market (if needed) will always take accrued interest into account in the purchase price so that interest is paid by the buyer rather than the US Treasury at maturity.
8a. How will the Fund give investors real-time visibility in the US Treasuries the Fund is holding with showing on-chain value and quantity of the NFTs in the Centrifuge pool of the Fund?
Each NFT will represent a specific quantity of T-Bills with the same CUSIP / ISIN and therefore the same tenor, issuance date and maturity date. The specific CUSIPs / ISINs will be identified to fund investors so that the current market value of each fund holding can be readily determined on a real-time basis.
8b. What is the mechanism? Will you have independent, third party reporting?
Celadon will provide regular reporting of the fund holdings and will show mark-to-market valuations of the specific T-Bills in the fund portfolio. In the next iteration of the fund we hope to provide on-chain reporting meaning that off-chain trading tools and parties would be directly integrated with the protocol.
Thanks and looking foward to discuss it face to face -Martin