# Liquidity Positions

# How do Members of Neptune make investment decisions?

Neptune is entirely member-directed and managed by the Members through democratic voting. As a Member, you should have some experience in evaluating or using DeFi protocols or other smart contract based projects and protocols.

To preserve privacy and to prevent front running, and unless otherwise agreed, Members will periodically agree to allocate a portion of Neptune's assets into a side-pocket (e.g., 20% of Neptune's assets) initially maintained by Neptune's service provider and facilitator with the aim of having it managed in-part by the Members. Once set aside, Members can propose to other Members to take specific positions. If a proposal passes (as outlined below), the facilitator will take steps to implement the Members' investment decision.

The process of side-pocketing assets will occur through a Moloch-style vote (i.e., an on-chain vote). Each decision to side-pocket collected assets will have a 4 day voting period, with a 3-day period for Members to "rage quit." If during the 4-day period, there are more "yes" votes than "no" votes, the assets will be set aside. If there are more "no" votes than "yes" votes (or a tie), the side-pocketing proposal will not pass.

Individual investment decisions will occur via the Dapp and will not require the expenditure of gas. Each Member will have the opportunity to outline and nominate an opportunity to other Members. Once nominated, Members or a Member's delegate will have the right to vote on whether to support the proposal.

A Neptune Member should understand and acknowledge that they must bear the economic risk of any investment strategy taken by Neptune.

# Will Neptune have a general partner and can it delegate additional authority to third parties?

All decisions related to governance are in the hands of members. There is no general partner, unless the Members make such a decision to appoint a general partner (but that wouldn't be in the spirit of things). Members reserve the right to grant additional authority to third parties, by amending the operating agreement or through a vote via the Dapp.

# Will Neptune operate via a thesis?

Neptune is an emergent experiment and thus there is no express thesis. Members can work together to formulate a thesis and explore deployment opportunities. They have the right to develop any thesis they agree on.

# What happens if there are multiple positions that are contemplated? How do Neptune Members make decisions?

Member decisions will occur through the Dapp based on proposals made by Members.

# What is the allocation period for Neptune?

Neptune has no express allocation period. Members can make investments until all contributed capital has been allocated or withdrawn, as discussed further in these FAQs.

# Does Neptune's service provider or facilitator have any rights to make capital deployment decisions?

The service provider has no role in making investment decisions. The facilitator reserves the right to propose investment strategies to members, but all such decisions will need to be formally approved by Members via a vote facilitated by the Dapp.

Last updated: 3/18/2021, 4:57:57 AM