Important Definitions & Disclosures
The information contained in the private placement memorandum (the “PPM”) for the VanEck PurposeBuilt Fund, L.P. is not complete and may be changed. Van Eck may not solicit subscriptions until the limited partnership’s interests are available for purchase. The private placement memorandum is not an offer or a solicitation for subscriptions referenced therein and is not a solicitation for an offer or solicitation for subscriptions in any state where the offer is not permitted.
The VanEck Purposebuilt Fund (the “Fund”) is not an investment company registered under the Investment Company Act of 1940, and therefore is not subject to the same regulatory requirements as mutual funds or ETFs registered under the Investment Company Act of 1940. While the Fund may trade commodity futures, commodity options contracts and other CFTC Regulated Products, the general partner intends to rely on the CFTC Rule 4.13(a)(3) exemption from registration as a Commodity Pool Operator (“CPO”) and at all times the Fund will meet (i) trading limitations, (ii) investor suitability requirements and (iii) offering and marketing restrictions. Before making an investment decision, you should carefully consider the risk factors and other information included in the Private Placement Memorandum (“PPM”).
The Fund is available to Qualified Purchasers Only. Please carefully read the Private Placement Memorandum before investing. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. There is no guarantee the Fund will achieve its investment objective and investors may lose their entire investment. The Fund is not suitable for all investors. Past performance is not a guarantee of future results.
The Fund’s investment program is speculative and entails substantial risks. There can be no assurance that the Fund’s investment objective will be achieved.
Your individual performance may be different and will be reflected in your monthly investor statement. It is important to rely on the monthly investor statement that you receive from the fund’s Administrator, as the statement will indicate your individual performance. An individual investor’s performance may differ, perhaps materially, from the performance results set forth herein due to a number of factors, including (a) participation in new issues, (b) timing of individual contributions/ subscriptions and withdrawals/redemptions, (c) any accumulated loss carryforwards and (d) different expenses, fees and other charges paid by certain investors.
An investment in the Fund is subject to risks, including, but not limited to, digital asset-related, market, regulatory, and operational risks. These include risks associated with early-stage and emerging companies, limited liquidity, valuation and custody of digital assets, illiquid or side pocket investments, investments in and exposure to tokenized real-world assets, volatility and speculative trading in digital assets, smart contracts, NFTs, stablecoins, RWAs, and synthetic digital instruments. The Fund is exposed to DeFi risks including yield farming, staking, and protocol governance, and may transact via centralized and decentralized platforms, subject to cybersecurity breaches, digital asset theft, wallet key loss, and operational failures. Additional risks relate to the uncertain and evolving legal and regulatory landscape for digital assets in the U.S. and globally, including possible classification as securities or commodities by the SEC, CFTC, or foreign authorities. The Fund may also face risks related to leverage, performance volatility, loss of capital, illiquidity, OTC counterparties, tax treatment of digital asset transactions, side pocket allocations, and restrictions on redemptions. There can be no assurance that the Fund will achieve its objectives or avoid substantial losses. Please note that this is not an exhaustive list of risks pertaining to the Fund. Please read carefully the PPM for a complete list of potential risks. Please contact us at [email protected] for the Private Placement Memorandum which contains additional risk information.
The Fund’s investment objective is to seek capital appreciation by investing primarily in Digital Assets, tokenized real world assets (“RWAs”), Digital Asset projects, and companies associated with the Avalanche ecosystem. To achieve this, the Fund invests in (i) Digital Assets and (ii) equity, equity-like, and debt instruments of private emerging blockchain and Digital Asset companies (“Portfolio Companies”), collectively referred to as “Investments.”
Investments may include liquid and illiquid assets such as cryptocurrencies, NFTs, RWAs, stablecoins, altcoins, smart contracts, decentralized finance (“DeFi”) protocols, DAOs, ICOs, SAFTs, SAFEs, token warrants, and related instruments. Strategies may involve staking, yield-farming, and participation in both centralized and decentralized platforms.
The Fund may invest in pre-seed to early-stage Portfolio Companies through equity, convertible debt, or token-linked instruments. Investments are expected to emphasize the Avalanche ecosystem. The Investment Manager employs a risk-based allocation strategy to adapt to adverse market conditions.
Cryptocurrencies and digital assets are not suitable for all investors. Investments in digital assets and Web3 companies are highly speculative and involve a high degree of risk. These risks include, but are not limited to: the technology is new and many of its uses may be untested; intense competition; slow adoption rates and the potential for product obsolescence; volatility and limited liquidity, including but not limited to, inability to liquidate a position; loss or destruction of key(s) to access accounts or the blockchain; reliance on digital wallets; reliance on unregulated markets and exchanges; reliance on the internet; cybersecurity risks; and the lack of regulation and the potential for new laws and regulation that may be difficult to predict. Moreover, the extent to which Web3 companies or digital assets utilize blockchain technology may vary, and it is possible that even widespread adoption of blockchain technology may not result in a material increase in the value of such companies or digital assets.
Digital asset prices are highly volatile, and the value of digital assets, and Web3 companies, can rise or fall dramatically and quickly. If their value goes down, there’s no guarantee that it will rise again. As a result, there is a significant risk of loss of your entire principal investment.
Digital assets are not generally backed or supported by any government or central bank and are not covered by FDIC or SIPC insurance. Accounts at digital asset custodians and exchanges are not protected by SPIC and are not FDIC insured. Furthermore, markets and exchanges for digital assets are not regulated with the same controls or customer protections available in traditional equity, option, futures, or foreign exchange investing.
Digital assets include, but are not limited to, cryptocurrencies, tokens, NFTs, assets stored or created using blockchain technology, and other Web3 products.
Web3 companies include but are not limited to, companies that involve the development, innovation, and/or utilization of blockchain, digital assets, or crypto technologies.
VAN ECK ABSOLUTE RETURN ADVISERS CORPORATION (‘VEARA”), THE INVESTMENT MANAGER OF THE FUND, IS A MEMBER OF NFA AND IS SUBJECT TO NFA’S REGULATORY OVERSIGHT AND EXAMINATIONS. VEARA HAS ENGAGED OR MAY ENGAGE IN UNDERLYING OR SPOT VIRTUAL CURRENCY TRANSACTIONS IN THE FUND. ALTHOUGH NFA HAS JURISDICTION OVER VEARA, YOU SHOULD BE AWARE THAT NFA DOES NOT HAVE REGULATORY OVERSIGHT AUTHORITY FOR UNDERLYING OR SPOT MARKET VIRTUAL CURRENCY PRODUCTS OR TRANSACTIONS OR VIRTUAL CURRENCY EXCHANGES, CUSTODIANS OR MARKETS. YOU SHOULD ALSO BE AWARE THAT GIVEN CERTAIN MATERIAL CHARACTERISTICS OF THESE PRODUCTS, INCLUDING LACK OF A CENTRALIZED PRICING SOURCE AND THE OPAQUE NATURE OF THE VIRTUAL CURRENCY MARKET, THERE CURRENTLY IS NO SOUND OR ACCEPTABLE PRACTICE FOR NFA TO ADEQUATELY VERIFY THE OWNERSHIP AND CONTROL OF A VIRTUAL CURRENCY OR THE VALUATION ATTRIBUTED TO A VIRTUAL CURRENCY BY VEARA.
Information provided by Van Eck is not intended to be, nor should it be construed as financial, tax or legal advice. It is not a recommendation to buy or sell an interest in cryptocurrencies.
© Van Eck Securities Corporation, Distributor, a wholly owned subsidiary of Van Eck Associates Corporation.