An opportunity to participate in currency arbitrage profits usually only available to institutional investors.
Fluid Finance captures the price difference between the official and market rates for select currencies and shares them with investors.
Pre-sale now open
Fluid is built on Currencycloud, the same architecture that underpins Revolut, eToro and major banks. This provides institutional access to more than 180 currency exchange rates.
More than 30 currencies are integrated into our systems.
- Australian Dollar (AUD)
- Saudi Riyal (SAR)
- Bahrain Dinar (BHD)
- Japanese Yen (JPY)
- Bulgarian Lev (BGN)
- Israeli Shekel (ILS)
- Kuwait Dinar (KWD)
- Swedish Krona (SEK)
- Malaysian Ringgit (MYR)
- Mexican Peso (MXN)
- Thai Baht (THB)
- Czech Koruna (CZK)
- New Zealand Dollar (NZD)
- Danish Krone (DKK)
- Norwegian Krone (NOK)
- Ugandan Shilling (UGX)
- Omani Rial (OMR)
- Philippine Peso (PHP)
- Hungarian Forint (HUF)
- United Arab Emirates Dirham (AED)
- Polish Zloty (PLN)
- Indian Rupee (INR)
- Qatar Rial (QAR)
- Indonesian Rupiah (IDR)
- Romanian Leu (RON)
- Argentine Peso (ARS)
- Nigerian Naira (NGN)
Fluid is integrated into most major banking and card systems.
Fluid is also integrated into Ethereum and Arbitrum, allowing delivery of dollars in digital form.
This structure makes Fluid uniquely positioned to capture currency price differentials with little risk. Fluid has been testing the arbitrage structures since August 2022.
Learn more about the Arbitrage Fund.
The Fluid Arb Fund will capture fiat currency differences and on-chain anomalies versus fiat currency prices. The Fund is designed to promote the use of DAI and Frax to improve remittance markets and global trade.
|Entity||Cayman Islands exempted company|
|Currency denomination||USD, DUSD|
|Target annual IRR||42.5%|
|Lock-up||Until Fund launch (expected Q1 2023)|
|Redemptions/sale||Unrestricted (after Fund launch)|
|Dividends||All net proceeds expected to be paid out as dividends to holders|
|Listing (planned)||CSX, Crypto, In-app exchange|
|Currencies accepted||Fiat: All
Crypto: DAI, USDC, USDT, ETH
Use of Funds
Founder Investors (those who participate in the pre-sale) will receive the terms set out below.
|Lock-up||Until Fund launch (expected Q1 2023)|
|Bonus shares||Convertible into 1.25x-2x Class A shares at any time after Fund launch|
|Bonus structure||First 25m FAFS sold = 2x
Next 15m FAFS sold = 1.5x
Final 10m FAFS sold = 1.25x
Note; subsequent sales of FAF after launch = 1x
|Cap:||USD 50 million|
|Token name||Fluid Arbitrage Fund Sale (FAFS)|
|Pricing||1 FAFS = $1.00|
Incentives for $FLUID Token Holders
|$FLUID Tokens Held|
|Account tier||Min||Max||FAFS Token Bonus|
|Private banking (Whales)*||150,000||>150,000||4.00%|
* These account tiers will get an additional % bonus of FAFS tokens at fund launch.
Anticipated completion within Q1 2023:
Pre-sale now open
Ready to invest? Follow these easy steps to purchase FAFS:
1. Create an account with Fluid.
Create an account in less than a minute. No commitment required.
2. Top up using cards or bank transfer.
Once you're signed up, top up your DUSD, DEUR or DGBP balances from your accounts screen.
3. Upgrade to The Starter Pack.
Our investment options are available to the account tiers FluidFam and above. Visit your profile to upgrade.
4. Purchase FAFS tokens.
Once you have funds available, go to Investments, select FAFS and complete your purchase.
Want to buy on-chain?
There are two options available for using crypto to buy FAFS. First and easiest, is to swap your on-chain crypto into DUSD. Once you have DUSD in your wallet, you can convert to off-chain DUSD via our app and follow the process above.
We also offer a personal service, where you can also ask questions. For crypto currency, we accept DAI, USDT, USDC and ETH. To purchase pre-sale tokens, just contact one of our private client representatives below:
Arb Fund disclaimer
The Fluid Arbitrage Fund and the FAFS tokens are not available to US Persons, as defined under Rule 902(k) of the United States Securities Act of 1933, as amended. If you are an Accredited Investor within the meaning of US law, you can contact your Fluid Finance private client advisor about participating in the Fund.
The Fluid Arbitrage Fund and the FAFS tokens, in addition to the material on this website, are not intended for use by persons in jurisdictions where it is unlawful to purchase digital goods. You are forbidden to access this website or to purchase any digital products from Fluid Finance or related entities if you are from any jurisdiction where such purchase is not lawful. It is your responsibility to inform yourself whether the purchase of any digital product from Fluid Finance or related entities is lawful or not in your jurisdiction.
The material on this website does not constitute a distribution, an offer, an invitation, recommendation or solicitation to sell or buy any securities in any jurisdiction. The material has not been reviewed by any regulatory authority in any jurisdiction. The material does not constitute advice of any nature and prospective purchasers are recommended to seek independent legal, financial and tax advice before making any purchase decision.
Frequently Asked Questions
Can anyone buy these pre-sale FAFS tokens?
Yes, except US Persons (unless you are an Accredited Investor) and countries on our Restricted List (see Annex 5 of the Terms).
How can you buy the tokens?
You can buy the tokens in the Fluid app.
- With fiat currency:
- Go to app.fluid.ch
- Create an account with just an email address.
- Purchase FAFS tokens from the Investments tab.
- With crypto:
- You can use Fluid’s Swap function here
- OR, you can contact Fluid for a personalised private client transaction. We accept DAI, USDT, USDC and ETH.
What is the price of the token?
Each pre-sale token is equal to $1.00.
What happens at fund launch?
The FAFS token will be convertible into Fluid Arbitrage Fund (FAF) tokens, with a bonus.
What is the bonus?
Pre-sale investors get a bonus, as follows:
|First 25m FAFS sold||2x|
|Next 15m FAFS sold||1.5x|
|Final 10m FAFS sold||1.25x|
Fluid token holders will also get a bonus, as follows:
|Bronze||1,000 – 9,999||1%|
|Silver||10,000 – 49,999||2%|
|Gold||50,000 – 149,999||3%|
Those who contribute to our DAI – DUSD pool on Balancer will also get a bonus, as follows:
|Bronze||1,400 – 3,999 BPT||1%|
|Silver||14,000 – 69,999 BPT||2%|
|Gold||70,000 – 209,999 BPT||3%|
You can add liquidity here: https://app.balancer.fi/
All of these bonuses are additive. So, if you buy the FAFS pre-sale tokens, hold Fluid tokens and add DAI to our pool (as everyone should) then all of these bonuses are added together.
How does Fluid generate yield for these tokens?
It is actually a profit sharing (from the arbitrage), rather than yield. Fluid is integrated into the traditional financial system and also crypto, so we are able to take advantage of the difference between the official rate and the market rate in many countries.
There is frequently an official rate for a currency or a standard retail market rate. Often remittance providers like Wise, Western Union or Remitly offer a slightly worse rate and charge high fees to cover payment system cost, etc. Fluid sources currencies at wholesale market rates and (at times) uses digital rails and peer to peer markets to offer a much better rate to the user and captures an attractive spread for the fund. Fluid also matches different currency flows, cutting out the payment system middleman. By reducing the (often grossly inflated) cost of sending money globally, we contribute to our mission of building a better financial model for a better world and also generating attractive returns for our users. And, like everything we do, it is open for everyone, not just the 1%.
How are you integrated into these different systems?
Fluid allow users to access most banking systems around the world, including Swift, SEPA, UK Faster Payments, Fedwire, ACH, AusPayNet, FPS (HK), SKN (Indonesia), IBG (Malaysia), EFT (Canada), RIX (Sweden), NICS (Norway), IMPS (India) and others.
Fluid also allows users to top up their accounts using Visa and Mastercard, as well as by using open banking.
Fluid also is built into Arbitrum and is planning to expand to Ethereum mainnet.
Fluid can deliver most global currencies to users’ bank accounts or their Fluid Accounts. From their Fluid Accounts, users from almost anywhere in the world can spend money on their Fluid Cards.
Will the fund dividends be distributed in DUSD?
Yes. As many of our investors are from the traditional world, there is also the option to receive dividends in all of the traditional currencies that we offer.
How often and when will the dividends be paid out?
Dividends will be paid weekly.
Is it possible to see/follow how many FAFS tokens have been sold, or how will we know when we approach the first 25 mil sold?
We are selling shares/tokens on the traditional side and the crypto side, so it is not trackable on-chain. We will announce when we get close to our targets (25, 40, 50).
How many class A shares will be distributed in total when the fund launches in Q1
These are the regular tokens, for after the pre-sale, called FAF tokens. There will be up to 50 million tokens + bonus tokens. This is a cap, no more tokens will be sold or distributed on fund launch.
How will the pool for the Class A share token be set up? Will it be an ETH or DUSD pool? Will it be on mainnet?
We are considering different exchanges for listing the FAF tokens. The pool will be a DUSD pool, not ETH (as our base pricing is in US dollars). It will be on Ethereum mainnet.
What will be the initial valuation for FAFS?
The initial valuation of the FAF token at fund launch will be $1.00. Thereafter, the price will vary depending on the market.
What is the management fee?
The management fee is set at 2.5% of TVL (AUM) per year. This means that Fluid will be paid 2.5% of the TVL (AUM) for managing the fund.
What is the incentive fee?
The incentive fee is set at 30% of profits per year. The incentive fee is payable after the fund has earned 10% per year. This means that Fluid will be paid 30% of the profits above a 10% threshold rate for facilitating the success of the fund.
For example, if the fund earns 25%, then the 15% above the threshold rate will be shared between the fund (70%) and Fluid (30%). In this case, Fluid would get 30% of 15%, equal to 4.5%. The fund would get 10% + 10.5%, equal to 20.5%.
What happens if not all of the 50 mil pre-sale tokens are sold?
It is no problem and the fund will launch anyway. The returns are not tied to the size of the fund. Basically, each dollar deployed for arbitrage earns pretty much the same amount.
We are confident to be able to deploy up to $50 million so this is why we chose this number.
In Q1 when the the fund is launched will it be possible to follow the balance and movements of the fund?
Yes, fund performance will be available.
How much of the return on investment (ROI) will go to the arbitrage fund investors?
All of it. Minus the management fee and incentive fee, which will be paid to Fluid.
What are the risks of investing in a fund like this?
All funds or companies have risk and you should never invest more than you are prepared to lose.
Fluid’s Arbitrage Fund is designed to be lower risk. Besides some fixed costs, we deploy funds to earn some of the difference between the official rate and the market rate, meaning the risk parameters are fairly limited.
I can buy in any currency, but the fund is in US dollars, right?
The arb route is something like USD>ETH>Local Currency>USD or is it more complex/simpler?
It is more like USD > mint DUSD > DAI > Local Currency through local partners or Fluid’s p2p market.
There are also other routes, involving purely fiat currencies. Fluid accesses FX at wholesale rates usually only available to the largest banks, giving it a price advantage.
There is also the pure crypto route: arbitraging our DAI – DUSD pool on Balancer. Often this provides returns of >1% daily.
I think that there would be 85 million FAFS tokens with $50 million invested (before the bonus for holding Fluid tokens or Balancer LP tokens). So, how can 1 token be worth $1?
That math is correct. The question is: what is a token worth that has a high arbitrage profit yield? It is similar to bond (or bond with upside) pricing and we expect the token to appreciate in value (which may bring down the expected yield based on a higher purchase price).
Or, investors may simply not wish to sell and may just hold the tokens.
The 40% APY is based on past returns. Do you think you can still achieve that if the crypto winter continues for a long time?
The returns for the fund are not related to crypto at all. It is just that the fund is tokenised (like our digital dollars, digital euros, etc.). The returns will come mainly from the difference between the official and the market rates for over 40 different countries that we are targeting.
A small portion does come from arbitraging our DAI – DUSD pool on Balancer. The profitability of the fund is more related to currency differentials than crypto market sentiment.
How much money was in the “alpha” product testing?
About $2 million.
When does the pre-sale end?
The pre-sale will end when the fund has been allocated or 1 February 2023, whichever comes first.