Why do we like this opportunity?
Decentralized Finance
The operation takes advantage of the DeFi ecosystem to offer a financial alternative that eliminates traditional intermediaries. Decentralization provides greater efficiency, global accessibility and higher yield potential than conventional alternatives, making it a strategic differentiator in the search for passive income and asset stability.
Potential for innovation and technological development
Delta Neutral strategies are directly connected to the ongoing development of the DeFi market and the advancement of blockchain technology. Innovative protocols create income opportunities and position the investor at the center of technological evolution.
Independence from Traditional Institutions
There are various forms of market disruption in the application of blockchain. This new technology allows for the attraction of various development and technological teams with Venture Capital and Private Equity capital offerings.
Blockchain technology
Unlike the previous internet model, due to blockchain technology, web 3.0 is characterized by greater security in the protection of data and transactions. However, the liquidity pool has only become possible thanks to the advancement of this technology, which continues to develop constantly.
Diversification of projects
The Delta Neutral approach makes it possible to diversify sources of income by exploiting multiple DeFi strategies. Lending, borrowing and bond operations, which are integrated with the aim of maximizing risk-adjusted returns while minimizing exposure to the volatility of crypto-assets.
Participation in different ecosystems
Despite the high volatility of the cryptoasset market, the Delta Neutral strategy prioritizes consistent returns only from the price of tokenized foreign currencies, regardless of token price fluctuations. Allocating capital to stablecoins tends to give investors greater predictability and protection
Projected scenarios
See how much your money can earn with this operation
Pessimistic Scenario
Base Scenario
Optimistic Scenario
*Simulation projected at a return of 25% p.a. based on analysis by Hurst Capital specialists. There is no guarantee that the estimate will materialize.
Risks
Risk of lower than expected returns:
The return on the VCs depends on various factors, including the performance of the transactions carried out in the DeFi protocols. Thus, the return estimated by VC investors may vary depending on the efficiency and results obtained through the Delta Neutral strategies employed by Borum.
Protocol/Smart Contract risk:
Operations on DeFi protocols rely on smart contracts for the execution of Delta Neutral strategies. These contracts are subject to vulnerabilities that can be exploited by hackers, resulting in the loss of funds. In addition, security breaches or technical problems in the protocol can negatively impact results, increasing the risks of volatility and loss of capital.
Governance risk
Many DeFi protocols are governed in a decentralized manner by their own users. Unfavorable governance decisions or changes in operating rules can compromise the performance of the strategies implemented, negatively impacting revenues.
Legislation and Regulation
Regulation of the cryptoasset market in Brazil and other countries is still developing. Unexpected regulatory changes or legal impositions could affect the operation of DeFi protocols, restrict access to certain strategies or increase operating costs.
Volatility Risk and Leverage
Although the use of stablecoins minimizes direct exposure to the volatility of the crypto markets, Delta Neutral strategies can involve leverage or derivatives. Sudden movements in the market can negatively impact leveraged positions, reducing returns or generating losses.
Information Asymmetries and Manipulation (Front-running)
DeFi protocols can be susceptible to manipulative practices such as front-running, where users exploit advance knowledge of future transactions for gain. These practices can jeopardize the results of Delta Neutral operations and impact VCs' ability to pay.
Slippage and Transaction Costs
Transactions on DeFi protocols can face slippage (the difference between the expected price and the executed price) in periods of high volatility or limited liquidity. This can negatively impact the execution of Delta Neutral strategies, especially in higher volume operations, reducing the efficiency and returns of operations.
Dependence on Stablecoins
Although stablecoins minimize exposure to volatility, they are subject to risks such as devaluation of the parity with the backed currency, which may be the dollar, euro, etc. (de-pegging) or problems with the custody of issuers. Any instability related to the stablecoins used can compromise the security and results of operations.
Lending and Borrowing
Lending in crypto-assets presents the risk of liquidity in supply, where, at times of high demand for redemptions, there may not be sufficient funds available, making it difficult to withdraw the assets lent, especially in protocols with low liquidity or a high concentration of assets in a few lenders. In addition, there is the risk of leverage and liquidation on borrowing, as many investors use loans to increase their exposure to the market, amplifying potential gains but also dramatically increasing risks. If the value of the collateral falls below the level required by the protocol, the borrower's position can be automatically liquidated, resulting in the loss of the assets deposited as collateral. A rapid fall in price triggers cascading liquidations, putting further pressure on prices and amplifying losses for leveraged investors.
Issuer Risks
Recent development of securitization of credit rights: This factor can generate legal and/or financial risks for investors. Securitization of receivables is a complex operation compared to other securities issues because of the credit risk and solvency of the securities issued by the securitization vehicle. The credit rights are part of the backing of the RCs and constitute their source of payment. Inadequate realization and/or delays in implementing the backing of the RCs can therefore directly and adversely affect the payment of the RCs. Law 14.430 and CVM Resolution 60, together with CVM Resolution 88, Official Letter 4 CVM/SSE and Official Letter 6 CVM/SER, among other regulations, constitute the main legal and infra-legal diplomas regulating the securitization of credit rights and their offering through crowdfunding platforms. However, offers made through crowdfunding platforms have been little used in the market and have not been fully regulated. As such, since this is a recent market in Brazil, which is not yet fully regulated, there may be situations in which there are no rules governing it, thus creating a risk for investors, since the Judiciary and regulatory bodies may, when analyzing the issue and interpreting the rules governing the matter, issue decisions that are unfavorable to the interests of investors.
Documents
Disclaimer
The offer presented on this platform is automatically exempt from registration by the Brazilian Securities and Exchange Commission (CVM), under the terms of CVM Resolution 88 and Circular Letters 4/2023 and 6/2023 issued by the CVM's Superintendence of Securitization Supervision (SSE). The CVM does not analyze offers under this Resolution in advance. The offers made do not imply that the CVM guarantees the veracity of the information provided or its compliance with current legislation. Before accepting an offer, please read the essential information about the offer carefully, especially the risk warning section. This presentation has been prepared by Hurst Serviços de Investimento Coletivo e Securitização S.A. ("Securitizadora" or "Platform") for information purposes only and is in no way a binding offer.
All the conditions and terms of the Transaction are defined in the documents "Termo de Securitização de Direitos Creditórios e Emissão de Certificados de Recebíveis da Hurst Serviços de Investimento Coletivo e Securitização S.A.", signed by the platform, and "Compromisso de Subscrição dos Certificados de Recebíveis, com Termo de Adesão e Ciência de Risco" ("Transaction Agreements"), to be signed by investors, in order to adhere to the terms of the offer. The Transaction described on this page is an adhesion to the public offer for the distribution of CRs backed by credit rights owed by BORUM FINANCE LTDA. ("Borum"), by virtue of the "Private Instrument for Investment in Operations to Promote Liquidity for Cryptoasset Trading and Other Covenants", signed between Borum and the Securitization Company under which Borum will acquire cryptoassets and link them to smart contracts to provide liquidity for cryptoasset trading with investors in exchange for remuneration ("Operation").
The Platform does not undertake to guarantee the accuracy of the information and forecasts provided herein, nor to update the presentation, and may change its content without prior notice. The Platform makes no representations or warranties that the information contained in this presentation or the presentation itself is complete or accurate, nor for any omission in this presentation or in any oral communication transmitted to the recipient throughout its analysis, undertaking only to take all precautions and act with high standards of diligence to ensure that the information transmitted is true, consistent, correct and sufficient.
These statements, estimates and projections reflect the assumptions of the Platform and third parties, and are subject to economic and market uncertainties and contingencies, most of which are beyond the Platform's control. Forecasts and results may differ from those anticipated and these differences may be significant. The content is not yet, nor does it contain any recommendation, indication and/or investment advice, and it is the sole and exclusive responsibility of the investor to make this decision. Should any investor decide to invest in this
As with any investment, the CRs investment presents risks and the possibility of asset losses that should be carefully considered before making an investment decision. Potential investors interested in this operation are advised to consult their lawyers, accountants, financial advisors and any other professionals they deem necessary to help them assess the suitability of the investment profile, as well as the risks inherent in the business. All investments involve risk, including the risk of losing all capital invested. Diversification and alternative asset allocation do not guarantee a profit or guarantee against loss. Investment decisions should be based on the investor's objectives, time horizon and risk tolerance.