Glossary

Alphabetical order. Plain language where possible, technical where necessary.

Allocation

Moving capital into a vault. A signed transaction from your wallet that deposits capital (crypto or fiat) into an ERC-7540 vault in exchange for vault shares.

Asset Manager (AM)

An entity that operates a trading strategy on the platform. Runs strategies in segregated SMA accounts at the institutional custodian. Has trading authority but not withdrawal authority.

AUT (Assets under Technology)

The capital connected to a strategy through MakeBanc's infrastructure. MakeBanc provides the technology, custody connectivity, vaults, the NAV oracle, settlement, but does not manage the assets, so the measure is assets under technology, not under management.

Base

The Layer 2 blockchain operated by Coinbase where MakeBanc's vault contracts are deployed. Inherits Ethereum L1 security with lower transaction fees.

Capital Intermediary (CI)

A regulated intermediary connecting allocators to the platform. Distinct from an Investor (allocates own capital) and an Asset Manager (runs a strategy).

Investor (CO)

A user who allocates capital to a vault. The ultimate beneficiary of strategy returns, net of fees.

Ceffu

The institutional cold storage custodian that mirrors Investor's on-chain assets onto Binance SMAs to be traded by Asset Managers.

Crystallization

The moment when accrued performance fee is realized and paid out. Happens monthly on MakeBanc.

Drawdown

A decline in strategy value from a previous peak. Maximum drawdown is the largest such decline historically observed.

ERC-7540

The Ethereum token standard MakeBanc uses for vaults. Extends ERC-4626 with asynchronous deposit and withdrawal semantics; fits the platform's daily allocation and monthly redemption cycle.

Guardian

A role that can pause vault operations immediately in response to exploits or anomalies. Unpausing requires the 96-hour TimelockController, preventing abuse.

High water mark

The highest NAV per share a vault has reached at a crystallization moment. Performance fees are only charged on gains above it. You never pay performance fees on recovering previous losses.

Insurance fee

Recurring fee on vault NAV. 1% per year, accrued daily. A complete pass-through of the cost of insuring MakeBanc's technology-risk exposure (coverage from Breach, currently in progress). MakeBanc keeps none of it.

Know Your Customer (KYC)

Identity verification performed by Noah using Sumsub. Required for all Investors before accessing the platform.

Know Your Partner (KYP)

Verification applied to Asset Managers before they can operate a strategy. Covers entity verification, beneficial ownership, track record, and operational security review.

NAV

Net Asset Value. Total value of all assets in a vault, net of accrued fees. NAV per share = NAV divided by total vault shares outstanding.

NAV oracle

The on-chain mechanism that reads positions and prices from the custody and trading layer, computes vault NAV, and posts it to the smart contract. Updates at least daily.

Noah

The regulated fiat infrastructure provider operating virtual accounts, KYC, and on/off-ramp connections. Licensed in multiple jurisdictions.

Non-custodial

MakeBanc does not hold your assets. Assets are held by the smart contract on Base, governed by public, audited rules. MakeBanc cannot move them without a transaction signed by your wallet.

Partner tier

The highest tier in the Asset Manager Program. Asset Managers at the top AUT threshold. Pays the lowest payment processing fee.

Performance fee

Fee charged on returns above the high water mark. 30% on MakeBanc, crystallized monthly. This is the asset manager's fee; MakeBanc charges a payment processing fee on it.

Platform fee

Recurring fee on vault NAV. 1% per year, accrued daily. Covers institutional custody at Ceffu and the MakeBanc infrastructure. Not split with anyone; the entire fee goes to MakeBanc.

Redemption

Converting vault shares back to underlying assets. Requests are submitted anytime and processed in a batch at the start of each calendar month.

Self-custody

You retain control of your private keys throughout. MakeBanc never has access to your wallet or keys.

SMA (Separately Managed Account)

A segregated account at the custodian where an asset manager has trading authority but not withdrawal authority. Assets are client property, segregated from both the asset manager's and custodian's balance sheets.

Soft close

An Asset Manager has paused new allocations to a vault without affecting existing positions or redemptions. Used when a strategy is at capacity.

Sumsub

The identity verification provider powering Noah's KYC. Used by 4,000+ financial institutions globally. If you have verified through any Sumsub-powered service before, your verification can be reused.

Tier

An Asset Manager's classification based on the total AUT routed through their strategies. Four tiers: Standard, Pro, Elite, Partner. Higher tiers pay a lower payment processing fee.

TimelockController

A smart contract mechanism imposing a 96-hour delay between announcing a governance action and executing it. Gives you time to react.

Vault

The ERC-7540 smart contract that holds vault shares and coordinates between the on-chain layer (share records) and off-chain layer (strategy execution in the SMA). Each strategy has its own vault.

Wallet

Your on-chain identity and signing tool. MakeBanc supports MetaMask, hardware wallets (Ledger, Trezor), Safe multisigs, and embedded Privy wallets. Signs every meaningful action and receives your vault shares.