Index inclusion

The platform's rules-based strategy index vaults.

What an index vault is:

A vault that allocates across multiple strategies within a single strategy type.

A market-neutral index, for example, allocates across managers whose strategies meet the market-neutral classification and inclusion criteria. An investor allocating to the index gets diversified exposure without picking a specific manager.

Index vaults are constructed by rules. No discretion in selecting managers.

Why indexes exist:

For investors: Diversification across managers. Single-manager risk is reduced. One underperformer affects the index partially, not totally.

For you: An additional channel for capital. Index allocations distribute to included managers per the rules. Larger index AUT lifts AUT at each constituent.

For the platform: A discovery mechanism for investors who want diversified exposure without researching individual managers.

Eligibility criteria:

General criteria (each index has additional specifics):

Tier. Pro and above. Standard is not index-eligible.

Track record. Minimum 12 months on the platform with continuous NAV reporting.

Performance consistency. Drawdown depth and frequency within published bounds for the strategy type.

Operational standing. No material breaches of your agreed terms or security obligations in the preceding 12 months. No active or recent threshold events.

Capacity. You must declare capacity to absorb additional capital. The platform takes your declaration at face value.

Liquidity. The strategy must handle monthly redemptions without material execution impact at the size implied by index allocation.

Index rules:

Allocation weighting. Equal-weight or risk-parity (equal risk contribution per strategy). The index methodology specifies which.

Rebalancing cadence. Monthly (aligning with the redemption cycle) is the platform default.

Inclusion review. Managers reviewed against criteria at each rebalance. Fall below and you're excluded at the next rebalance, allocation redistributed.

Capacity caps. The index doesn't allocate more than your declared capacity. Near capacity, the allocation is capped.

What changes when you're included:

Two things.

You receive additional capital flow from the index. This capital counts toward your AUT for tier purposes.

You agree to index participation terms (an Infrastructure Agreement addendum) covering capacity declarations, the inclusion review process, and consequences of falling below criteria.

You don't lose your direct listing. Investors can still allocate directly to your vault. The index is an additional channel.

What doesn't change:

Your terms. Same parameters whether capital comes through the index or directly.

Your trading. The platform aggregates index allocations into the same vault as direct allocations. One vault, one balance.

Your fees. The same 30% performance fee, with MakeBanc's payment processing fee set by your tier. The 1% platform fee and 1% insurance fee that investors pay are unchanged.

Performance reporting:

The platform displays index performance separately from individual strategy performance. Index NAV is constructed from underlying strategy NAVs per the index rules.

Investors can drill down from the index view to see each component. Your dashboard continues to show your own strategy NAV, with the index aggregation as a separate report.

Transparency:

The index methodology, eligibility criteria, current composition, and historical performance are all public.

Investors see exactly which strategies are included, in what weights, and how each has performed. The platform doesn't present indexes as black boxes. An index investors can't understand is a worse product than a direct allocation.

When the index isn't the right product:

If an investor has high conviction about a specific manager, direct allocation is the right path. The index dilutes conviction by spreading capital.

If a strategy type doesn't yet have an index (or has one with few constituents), direct allocation is the only path.

For you, the index is additional flow, not a substitute for direct relationships. Managers on the platform may receive capital through both direct allocations and index inclusion.