Frequently Asked Questions
Six Capital’s FAQ will give you instant answers to the most frequently asked questions about investing in Web3 and blockchain technology. Is your question not in our frequently asked questions? Please feel free to contact us.
Web3
What is Web3?
Web3, also known as the “decentralized web”, is a concept that aims to create an internet where users have full control over their own data and activities, instead of being managed by a central authority. The Web3 ecosystem uses blockchain technology to achieve this decentralization, providing users with the ability to communicate and transact directly with each other without the need for an intermediary.
Web3 technology offers the possibility of developing decentralized applications that use blockchain technology for authentication and verification. This can include a wide range of applications such as financial services, data storage, supply chain management, gaming platforms, and social media. These applications take advantage of the properties of blockchain such as decentralized storage and verification of data, making them more efficient, secure, and transparent than traditional applications. This can, for example, be the case in supply chain management where the traceability of goods is improved, or in financial services where the transfer of money can be faster and more secure.
Web3 is still in development, but it is a promising concept that offers the possibility to improve the technological developments of the internet and give users more control over their online activities.
What is a consensus protocol?
A consensus protocol is a set of rules and procedures used by a decentralized system, such as a blockchain, to determine the validity of transactions. The goal of a consensus protocol is to ensure that all members of the system have a consistent and correct version of the transaction history.
There are different types of consensus protocols used in blockchain technology, each with their own unique properties, such as transaction processing speed, security, and energy efficiency.
The two most commonly used consensus protocols are:
Proof of Work (PoW): This protocol requires users to use their computing power to solve complex mathematical problems, a process called “mining.” The first user to solve the problem receives the reward for adding a block to the blockchain. PoW is used, for example, by Bitcoin.
Proof of Stake (PoS): This protocol requires users to stake a certain number of tokens, a process called “staking.” Users who stake a large amount have a greater chance of adding a block to the blockchain and receiving a reward. PoS is used, for example, in Ethereum 2.0.
Core Fund
What is the difference between centralized and decentralized?
Centralized and decentralized are terms used to describe how a system or organization is structured.
A centralized system or organization is focused on a single authority or central location. This means that there is a single party or group responsible for making decisions and carrying out activities. For example, a central bank that is responsible for issuing currency.
A decentralized system or organization is focused on multiple parties or locations. This means that there is no single authority responsible for making decisions and carrying out activities. Instead, decisions are made by a group of parties each with their own voting rights. For example, the governance of a Web3 project, where token holders have proportional voting rights and vote on certain proposals.
The advantage of a decentralized system is that it is less reliant on a single authority and therefore less vulnerable to failure or manipulation. The disadvantage is that decision-making can often be slower and there can be more complexity in reaching consensus.
What are the risks?
There are several risks associated with the use of blockchain technology, and we will outline the most significant ones:
Volatility
The exchange rates of trading pairs can fluctuate quickly and significantly, meaning that the value of a token in euros, for example, can quickly rise or fall.
Hackers and fraud
Trading platforms and wallets are often targeted by hackers and fraudsters. When unauthorized access occurs, it often leads to significant losses of tokens.
Scams
There are many scam-related activities associated with the blockchain, such as Ponzi schemes and fraudulent initial coin offerings (ICOs). These can lead to loss of money for those who fall for them.
Storage
The security of your assets is determined by the method of storage. It requires technical skills to take this storage into your own hands. Without the proper knowledge, this can pose a significant risk.
It is essential to remember that, as with any form of investment, there are always risks. Six Capital takes various measures to mitigate these risks, including carefully selecting assets, monitoring the market, and applying risk management techniques such as diversification. Six Capital also collaborates with partners to ensure that assets are stored and traded in a safe and reliable manner.
Six Capital
What is Six Capital?
Six Capital is an investment fund that enables investors to easily and securely participate in the growth of Web3. With almost a decade of experience in blockchain technologies, our team has the expertise and knowledge to identify the most promising opportunities in this rapidly evolving market.
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What is Six Capital’s mission?
The mission of Six Capital is to provide an accessible and secure way of investing in high-quality Web3 and blockchain technology, with a focus on long-term returns for our investors.
Core Fund
What is the Core Fund
The Core Fund is a registered investment fund with the AFM under registration number 50031858.
With the Core Fund, you benefit from the upward potential of Web3 technology. The portfolio is divided into six specific categories, which are essential for the development and adoption of Web3.
How long do we advise you to stay in the fund?
The investment fund you are investing in is in a young, volatile market. This market experiences periods of growth and decline. Historical data shows that a minimum exposure of 3 years is most efficient. By staying in the fund for at least 3 years, you benefit from long-term adoption.
How will I be kept informed of my investment?
You will be informed of the status of your investment monthly. Before investing, your preference regarding the frequency and method of communication will always be asked.
Core Fund
Why should you invest in the Core Fund?
There are many reasons to invest in Six Capital’s Core Fund. A healthy investment portfolio is characterized by investments in diverse asset classes. The Core Fund provides optimal exposure to the emerging Web3 market.
The fund has a unique investment vision that focuses on the pillars of Web3. In addition, the fund offers one of the safest storage methods thanks to its unique custody protocol. Furthermore, we have almost a decade of personal experience in the market, which means we know how to achieve optimal returns in this innovative and rapidly growing market.
How to start investing in the Core Fund?
The easiest way to start investing in the Core Fund is by filling out the “Start Investing” form. After that, we will schedule a personal appointment with you.
You are always welcome for a cup of coffee. You can also contact us directly via phone and email.
How is my investment stored?
At Six Capital, our clients’ investments are of the utmost importance. That is why we have invested in a high-end custody protocol for the storage of these investments. The protocol includes various measures to store the investments as securely as possible, including the use of multi-sig and an advanced geographic setup.
Core Fund Costs
Management fee
Six Capital charges a fee for managing and storing investments. This fee, also known as the management fee, amounts to 2% per year. The fee is charged monthly and automatically deducted from your participations.
Performance fee
The performance fee is calculated using a “high water mark” principle. This means that the fee is only applied to actual profits made. The high water mark ensures that the fee is calculated based on the difference between the previous highest value and the new highest value. As long as no new heights are reached, no performance fees are charged. In this way, you only pay a performance fee once on the same return. Furthermore, the high water mark is not reset, promoting fairness and transparency.
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Entry and exit fee
At Six Capital, accessibility is paramount, which is why we do not charge entry fees. However, there is an exit fee of 0.75% calculated on the amount to be withdrawn. This fee is necessary to cover the transaction costs associated with the exit. Once the costs are covered, the remaining amount of the 0.75% will benefit the fund and the current participants.
Hurdle rate
At a certain investment size, we introduce a hurdle rate of 6%. This means that no performance fee is charged on the first 6% of the profits made.