Between John Christmas ("Manager") and Huy Pham ("Investor")
July 31, 2026 · Companion to the investor memo
| Investment | (editable — final amount by mutual agreement) |
| Strategy | Yasashi — automated mean-reversion system on BTC/USDT perpetual futures |
| Leverage & sizing | Dynamic 5× — position size adjusts with account equity, so exposure scales down after losses |
| Risk stop | 1.4% hard stop per trade (≈7% of equity at 5× on a full-size position), plus trailing and break-even exits |
| Drawdown response | Position size reduced or trading paused at an equity drawdown of % |
| Profit definition | Net realized P&L: closed-trade results after direct trading costs, funding, and platform fees. Open positions do not count until closed. |
| Profit retention | After each profitable month, 50% of net realized profit is retained in the account to compound |
| Retained-profit attribution | Retained profits keep the same 70/30 attribution (per $100 retained: $70 Investor / $30 Manager), tracked on the monthly reconciliation. Each party's accrued share compounds in the account, remains at market risk, and is settled on exit or by mutual agreement. |
| Distribution split | The distributed half is paid 70% to the Investor and 30% to the Manager (per $100 of net profit: $50 retained · $35 Investor · $15 Manager) |
| High-water mark | Applies. No Manager distribution during recovery from prior losses — distributions resume only on net profit above the previous account peak. |
| Settlement | Monthly, within 5 business days of month-end reconciliation |
| Other fees | None. No management fee, no setup fee, no charge of any kind besides the profit share above. |
| Reporting | Read-only live dashboard access · monthly written reconciliation · complete trade-history export on request |
| Pause | Investor may request a trading pause at any time; no new positions after notice, open positions managed to exit |
| Exit | Investor may exit at any time with written notice. Positions closed, account reconciled, and funds returned within 2 business days. |
| Lock-up | None |
| Tax reporting | How gains are reported to each party — to be finalized with a tax professional; nothing in this sheet is tax advice |
| Confidentiality | Treatment of strategy details and account data |
These items are open on purpose. This sheet fixes the economics and controls both parties have agreed to discuss; no funds move until the items above are documented.
Draw your signature below (or type your full legal name), check the box, and press Sign. Each signature is timestamped and recorded with this document's fingerprint. Both parties agree that an electronic signature here carries the same effect as a handwritten one.
This term sheet summarizes terms for discussion and execution between the named parties.
It is not a securities offering, not financial advice, and creates no partnership or fiduciary
obligation beyond its stated terms. Trading digital-asset derivatives with leverage involves
substantial risk, including total loss of capital. Past performance does not guarantee future results.
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