FAQ

1. How do I create a tokenized portfolio?

A tokenized portfolio can be created in 4 simple steps.

1. Click on the Create Fund icon to start the simple process of launching a new tokenized portfolio.

2. Choose an appropriate Ticker for your tokenized portfolio.

3. Select the digital assets and each allocation (%).

4. Assign a Risk Rating to the tokenized portfolio and add details on the investment strategy (free text input).

The final step is to click Launch after following through with all the above!

For visual learners, refer to this video tutorial (Coming Soon!).

2. How many digital assets can I include in a tokenized portfolio?

Currently, in the first phase of AlgoCellar's testnet release, an AlgoCellar tokenized portfolio can hold ten digital assets.

We expect to increase the limit gradually and eventually enable the creation of a fund of funds (FOFs) on the front end.

Read more on FOFs here.

3. What available assets can be used in a tokenized portfolio?

You can refer to the list of supported tokens here. We are releasing new tokens regularly (happy to receive suggestions via [e-mail] or through our Discord channel in #request-token-support) using the following format "Request to add AlgoCellar: token1, token2, etc".

We expect to include all asset types as tokenization efforts continue, including real-world assets (RWA) such as equity, debt, options, etc. Note: Before adding a token as a supported asset, the team analyses its smart contract to ensure it strictly conforms with the ERC-20 standard, and no suspicious/unusual code is present.

4. Can I create a tokenized portfolio with one underlying asset?

No, the minimum is two assets.

We expect to enable the front-end creation of a fund of funds (FOFs), which will still require a minimum of 2 tokenized portfolios.

5. What does the "symbol" represent in a tokenized portfolio?

The symbol is a unique identifier (a.k.a. ticker) representing the tokenized portfolio on the platform's database. The limit is currently set at 3 alphanumeric characters.

6. Does the risk rating influence any price or calculation in a tokenized portfolio?

No, the risk rating is purely to inform the investor of the tokenized portfolio’s overall risk rating based on the composition of assets.

In future releases, we expect to use risk analytics to define rating.

7. After creating a tokenized portfolio on the platform, it is not visible to an investor. Why?

After a fund is created on the platform, it must be Launched on the blockchain to be visible to investors. Please make sure that you have completed this step.

8. How/Where can I define the management fee?

The platform follows a modular development.

The portfolio manager can decide to turn on the management fee module and start charging based on a % of the Total Value Locked (TVL) in the tokenized portfolio under management.

9. Can I use a fiat currency (i.e. USD, EUR) to invest in a fund?

No, our platform currently can only accept digital currencies.

We are working on fiat to tokenized portfolios on/off-ramps.

10. How many wallets does your platform support?

On Algorand, we support MyAlgo.

11. I do not own any of the required underlying assets in my wallet, but I want to buy a share of the fund. What should I do?

CombSwap, a standalone product powered by Memento for DOMANI DAO has developed a DEX aggregator that allows anyone to mint a tokenized portfolio by purchasing all the underlying in one transaction using one specific token.

In this way, you are not required to own all the underlying assets to mint your preferred tokenized portfolio.

12. Can I buy less than one token of a tokenized portfolio?

Yes, tokenized portfolios are divisible by less than 1 unit. Therefore if you so desire, you can mint, redeem and trade any fraction of a tokenized portfolio.

13. How do I calculate the required quantity of assets to invest in the fund?

After providing the relative weights, you'd like to buy in the Instructions tab, click on the revolving arrow next to the Required Quantity column to compute the required amount.