Between the Manager and the 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 | Trading is paused if the account falls 20% from its peak equity. No new positions are opened until the parties have spoken and agreed to resume. |
| Profit definition | Net realized P&L: the sum of closed-trade results. There are no platform or trading fees. Open positions do not count until closed. |
| Buffer period | For the first 90 days after funding, all profit stays in the account. Each party's share accrues on the monthly reconciliation but nothing is paid out. When the 90 days end, the accrued profit is settled in one lump sum on the normal split below: half stays in, $35 of every $100 to the Investor, $15 to the Manager. |
| Profit retention | After the buffer period, following 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 | After the 90-day buffer period, the other half of each month's net profit is distributed: 35% of net profit to the Investor and 15% to the Manager (per $100 of net profit: $50 retained · $35 Investor · $15 Manager) |
| High-water mark | Definition: the highest cumulative net profit the account has reached at any prior reconciliation, net of deposits and withdrawals. It starts at $0 on the funding date and is reset to the new peak after each distribution. Only profit above the mark is distributed. No Manager distribution during recovery from prior losses — distributions resume only on net profit above the previous account peak. The same mark governs settlement on exit: the Manager's accrued share of retained profit is paid only to the extent the account is above the previous peak at the time of exit; any shortfall reduces the Manager's share first. |
| Minimum distribution | A distribution takes place only when net profit above the high-water mark exceeds $5,000 at a reconciliation. Below that, the profit stays in the account and carries forward to the next month. |
| Settlement | Monthly, within 5 business days of month-end reconciliation, beginning with the first month-end after the 90-day buffer period |
| Other fees | None. No management fee, no setup fee, no platform or trading fees, 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 |
| Exit | Investor may exit at any time with written notice. Positions closed, account reconciled, and funds returned within 2 business days. On exit the retained profit is settled at the same 70/30 attribution (per $100 retained: $70 Investor / $30 Manager), subject to the high-water mark above; the Investor receives their capital plus their share of retained profit, and the Manager's accrued share is paid from the account at that time. |
| Partial withdrawal | Investor may withdraw part of the account at any time with written notice. The withdrawal is settled pro rata: the withdrawn fraction of the account carries the same fraction of each party's accrued retained profit, settled on the same terms as a full exit; the remainder continues under this agreement unchanged, with the high-water mark scaled by the same fraction. |
| 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 |
| Funding rails | USDC on Arbitrum, Zelle, or bank wire. Wire details are provided with the countersigned copy of this sheet, never on a web page, and are confirmed by a phone call between the parties before any transfer is sent. Funds are deployed the same business day they are received. |
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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