UBX -Delegator Liquid Staking Token

UBX is a Bucket of VDA Investment platform, it is a fully functioning product. UBX cuts out the middleman for Risk Management and is thus able to offer the lowest Risk Management of Portfolio in the WEB 3 industry.

Industry funds have consistently outperformed actively managed funds since their inception. For the 12-month period ending May 2022. Investors poured more than $375 billion into index funds, while actively managed funds experienced outflows of roughly $308 billion during the same period.

One reason why index funds outperform actively managed funds

is due to their low annual fees.

UBX has an annual fee of only 0.5% whereas competing crypto offerings have fees of 3% per year, All crypto offerings built on one of the many recently launched fund platforms will apply their fees over and above those of the platform. UBX can offer such low fees because it is independent and automated. Index strategies are a set of rules that an algorithm can act on with no human intervention required.

2. TYPICAL PORTFOLIO & FUND STRUCTURES

Definitions:

Open-end mutual fund:

An open-end fund is a mutual fund issuing unlimited shares of investments in stocks and/or bonds. Investing creates more shares, whereas selling shares takes them out of circulation. Shares are bought and sold on demand at their net asset value, which is based on the value of the fund's underlying securities and is calculated at the end of the trading day. When a large number of shares are redeemed, the fund may sell some of its investments to pay the investor. Shares are bought directly from the fund administrators.

Exchange-traded fund (ETF) :

An exchange-traded fund is like an open-end mutual fund but instead trades as a common stock on a stock exchange. it is not purchased directly from fund administrators. An ETF may trade at a premium or discount to the NAV but this is often very short-lived due to arbitrage by institutional investors.

Closed-end fund (CEF) :

A closed-end fund is seeded once-off via an IPO and then traded on exchange thereafter

No further shares are issued and CEFs may trade above net asset value as buying and selling the shares on exchange has no effect on the underlying assets. The structure of UBX is analogous to a new hybrid type a closed-hybrid fund (CHF): A CHF is a closed-end fund that trades with an index strategy whereas traditionally all closed-end funds have been actively managed.

Post-ICO, investors will only be able to purchase the UBX tokens on exchange. No further tokens will be sold directly. Buying and selling tokens on an exchange does

not affect the underlying NAV and CHFs are able to trade at a premium depending on market forces.

A price floor is created via the liquidation option in the smart contract, effectively ensuring that the token is not able to trade at a discount.

3. RATIONALE BEHIND A CRYPTO INDEX STRATEGY

Index investing has seen exponential growth among investors since the first index mutual fund was launched in 1976. This has proven to be a successful form of investment as the low-cost involved has allowed index funds to outperform the majority of active managers across market and asset styles.

Over a 10-year investment horizon more than 80% of large-cap fund managers failed to outperform their benchmark index. The odds of picking a winning fund manager are also low: studies show that regardless of past performance, future performance is virtually random.

Simply, an index fund allows investors to track the index the underlying trend behind the selection of assets without being reliant on a particular one. There is no active trading apart from the rebalancing of assets at fixed time intervals. This allows the fund to consistently track the mean market performance even if some of the original assets fall out of favor.