How to invest money in Numerai?


#1

Hello, friends!
I see a great future of Numarai!
How can I buy tokens or otherwise give money under the management of Numarai artificially intelligent?

P.S.
Forgive me, my English is bad, so I could have missed the information if it had been written about somewhere before. I hope you will help me. Thank you so much!


#2

@standartm some pals of mine have the same questions. To the best of my knowledge, you can not at the moment but I think there are some works currently going on in this direction. Richard the CEO mentioned the launch of NMR in passive last week in the slack channel. Let’s wait and see.

Honestly, as I already mentioned in another thread within this forum, I think Numerai needs to greatly improve on its posting / news activities and give more frequent official statements or road-maps into its future and development.


#3

I can’t seem to find the previously existing FAQ page, but on it, they stated that if you’re looking to invest with Numerai, the minimum is $1 million. I’m not 100% certain if that’s regarding investing in the company or providing funds for them to manage on your behalf.

As the platform is still growing and evolving, I’m sure that opportunities to host a fund with Numerai and more information about the direction of their fund will be available as they refine things on their end.


#4

Hi, @standartm.

Thanks for being a fan.
@AntMan is 100% correct. We’re only accepting institutional investment with a $1m minimum.

But we’ll be launching Numeraire soon, which you can earn by competing.
http://avc.com/2017/02/numeraire/


#5

Will competing be the only way to earn Numeraire? For example, if I’m about to upload my first prediction, will it (eventually) be possible to buy or trade ETH or BTC for Numeraire to stake on submissions?


#6

Yeah, since it’s a compliant Ethereum token, you’ll be able to get tokens from anyone willing to sell theirs from day one.
We don’t have any control in if and when exchanges list tokens, but they’re usually pretty sharp about getting new tokens listed.


#7

Ah awesome, thank you! That makes perfect sense- I’ll be honest I didn’t even think of the exchanges as a source to acquire NMR. Hopefully, I’ll be swimming in it once I develop a kickass model and upload some awesome predictions. :slight_smile:

Major shout out to the team who put NMR together.


#8

Maybe it is also worth to think about a European AIFMD compliant Alternative Investment Fund (AIF) which could be set up easily for Numerai in Liechtenstein or Luxembourg (https://en.wikipedia.org/wiki/Alternative_Investment_Fund_Managers_Directive_2011 ). The AIF could even receive an ISIN no. for regular public trading on European exchanges and brokers. Set-up cost are low, typically about USD 50k. Biggest problem: it is officially forbidden for US citizens to purchase/trade AIF shares, obviously because they are not SEC compliant.


#9

@Boxter That’s a really interesting idea, I’ve not read much on AIFs. Are there currently any blockchain-based AIFs? I know there are a lot of EU-based blockchain initiatives, but I haven’t heard of any Alternative Investment Funds.


#10

I discussed already a potential cryptocurrency (CC) fund with Stefan Lindemann, CEO of LGT Fund Management in Liechtenstein (https://www.lgt.li/en/private-banking/services-and-solutions/private-label-funds/). General result: it is possible to set up a CC AIF Fund in Liechtenstein. Stefan himself doesn’t know any other CC AIF fund in Europe yet. Some facts for such a fund:

Set-up Cost: about 30,000- 50,000 CHF
Set-up Time: about 6 months
Prospectus: would be written by LGT with input from the fund initiator
Legal structure AIF in the legal form of a collective unit trusteeship in accordance with the Law of 19 December 2012 on AIF Managers (AIFMG), supplemented by the relevant provisions of the Persons and Companies Act (PGR).
Type of fund either private currency or digital asset fund
or a private equity fund 100% holding a CC trading firm; tbd.
IMPORTANT: in case of PC or DA fund detailed description and location of CC unit/coin storage (whether hot/cold storage and/or multi-sig wallet). Probably Liechtenstein must be main location, next to other locations in case of multi-sig wallet; tbd. – must be finally approved from Liechtenstein Financial Market Authority (FMA)
Country of incorporation Principality of Liechtenstein
Currency of account Tbd.
Asset manager must be provided by the fund initiator and must be educated in CC trading; can be also 2 persons
Administration LGT Financial Services AG, Liechtenstein
Depositary LGT Bank AG, Liechtenstein
Auditors Tbd., e.g. one of the big 4 e.g. PWC
Competent supervisory authority Liechtenstein Financial Market Authority (FMA)
Maintenance register of unitholders LGT Bank AG, Liechtenstein
Duration of the AIF unlimited
Minimum investment 1 unit , size tbd. (e.g. 1000 or 50,000 or other $, € or other)
Denomination With 3 decimal places
Initial issue price tbd.
Initial subscription date tbd.
Max. subscription fee e.g. 5%
Max. redemption fee tbd., recomm. none
Max. management fee ?? % p.a.; customized, suggested base fee and performance fee
Performance fee with high watermark and hurdle rate (classical)
Fee reduction with growing placement size
Operations fee Tbd.
Initial value date tbd.
Application of income Reinvesting (accumulation)
End of financial year e.g. As at 31 December in each case
End of first business year tbd.
Net Asset Value (NAV) day tbd. in case of PC or DA fund can be daily monthly or even yearly
Valuation frequency tbd. in case of PC or DA fund can be hourly, daily or even monthly
Issue/redemption date Each NAV day
Issuance and redemption value date: 3 bank business days after the NAV day
Cut-off time for unit trading tbd., e.g. Day before the NAV day at or before 2:00 p.m. (CET)
Further points:
• Tbd. countries for fund distribution and marketing permission
• Tbd. fund distributors/placement agents

BUT, as I said there are severe restrictions for AIF (unit) distribution to US citizens:
E.g. the units may not be offered, sold or otherwise transferred in the United States nor to or for the account of US persons (within the meaning of the Act of 1933). Subsequent transfers of units within the United States or to US persons are also not permissible…. Moreover, units of the AIF may not be offered, sold or delivered to citizens or residents of the USA, to other individuals or legal persons whose income and/or earnings are subject to US income tax irrespective of their source, to financial institutions who do not subject themselves to the provisions of the FATCA.


#11

Will it be possible to invest in the future less than 1 million for private investors?
$10K - $50k for example?


#12

Hi, @standartm

We don’t have any plans to allow that.


#13

Hi, @standartm

We don’t have any plans to allow that.


#14

Hey Standartm,

Just for additional clarification, Numerai is listed with the SEC under a series of different exemptions that prevent them from marketing the actual hedge fund portion (the managed funds side) of it out in a public way. It also requires them to pretty much only work with what the industry refers too as “Qualified Investors” with whom they already have a relationship with. This is partially why it was such a big deal for Renaissance to partner with them. It opens a lot of doors via pre-existing relationships.


#15

@jonathan

If an individual wished to look into possibly investing 1M+, how would they go about doing that?


#16

[email protected] would be the way to go.