Joining The Syndicate
01. What is the $100K deposit for?
Our syndicate deposit serves as both a commitment filter and cost-sharing mechanism, ensuring that funding applicants are financially accountable while pre-screening out unqualified participants. It also offsets essential SPV formation expenses, including legal, regulatory, due diligence, and business development costs, which are not subsidized by the fund.
02. When do I get the deposit back?
Syndicate members’ deposits are refunded upon full funding of the subscribed SPV, typically with the first distribution, before the GP/LP split.
03. What is the benefit of being an LP?
The benefit of being a Limited Partner (LP) is access to professionally managed, high-yield investments with limited liability and no operational responsibilities.
SPV Formation
01. If I form an SPV, what do I get?
Upon forming an SPV with FlarePoint using your deposit and letter of credit (or Bitcoin/assets), you initially hold 100% of the LP shares, which dilute pro rata as additional investors subscribe.
02. Will I be a general partner? [GP]
Most FlarePoint SPV founders participate in the General Partnership, with roles and terms defined contractually prior to subscription.
03. Will I have a say or control in my SPV?
SPV founders retain a role within the General Partnership, typically with operational control, while FlarePoint’s GP maintains financial oversight, aligning investor confidence with subject-matter expertise.
Return on Investments
01. How is the ROI calculated?
ROI is calculated by dividing net distributions by the total capital at risk, including deposits and pledged collateral. For example, if a project yields $10MM net (after OpEx AND debt service) over 5 years and required $2MM in letters of credit plus $200K in deposits, the ROI would be $10MM ÷ $2.2MM = 454.5% 5-year ROI.
02. How are returns calculated with BTC mining?
Bitcoin mining returns are based on BTC’s value at the time of mining, with FlarePoint applying conservative price forecasts in all projections.
03. How often and when will I get dividends?
Dividends are distributed as frequently as monthly, with most SPVs generating profit within six months of full subscription.
04. What if I never subscribe?
Technically, a syndicate member who never subscribes to an SPV only jeopardizes their deposit.
Letters of Credit and Hypothecation
01. When will my letter of credit be released?
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02. What is hypothecation?
Hypothecation is the practice of pledging an asset as collateral for a loan or financial obligation without transferring ownership or possession of the asset.
This structure is advantageous for investment because it allows the investor to retain ownership and potential upside of the pledged asset, such as Bitcoin, real estate, or securities, while unlocking liquidity or credit capacity to access higher-yield opportunities, all without triggering a taxable event or requiring asset liquidation.
This structure is advantageous for investment because it allows the investor to retain ownership and potential upside of the pledged asset, such as Bitcoin, real estate, or securities, while unlocking liquidity or credit capacity to access higher-yield opportunities, all without triggering a taxable event or requiring asset liquidation.
03. What is the benefit of investing with Bitcoin?
Bitcoin whales who prefer not to liquidate can hypothecate their BTC through FlarePoint’s debt instruments to generate yield while preserving ownership.
04. How can I invest with "project related assets" [PRA]?
A project-related asset [PRA] is any asset directly tied to the development, operation, or revenue generation of a specific project, such as land, equipment, intellectual property, or contractual rights, that can be used as collateral or contribute to the project’s value and performance. Syndicate members can often contribute PRAs instead of an LC, BTC, or capital.
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