Crypto glossary in plain language

The first cryptocurrency, launched in 2009. Its protocol caps supply at 21 million units, new issuance shrinks with every halving and no central authority can change those rules on its own.

It is the core position of the Bitcoin Fund.

A public ledger shared by thousands of computers, where transactions are grouped into chained blocks. Changing an old block would mean redoing every block after it, which makes the history very hard to alter.

Open networks that provide compute, data or payments for artificial intelligence models and agents, coordinated with tokens instead of a single provider. It is an early and highly volatile sector.

It is the thesis of the AI Fund.

Lending, trading and yield that run on smart contracts instead of banks. Access is open, but it adds code, liquidity and governance risks.

Value that exists and moves on a digital network, such as bitcoin, ether or a stablecoin. Ownership is recorded on a blockchain and controlled with private keys, not with a bank account.

A programmable network that runs smart contracts, stablecoins and financial applications. Ether is its native asset and pays the network’s fees. Since September 2022 it has run on proof of stake.

It is the core position of the Ethereum Fund.

The halving of new bitcoin issuance, scheduled every 210,000 blocks, roughly every four years. The latest took place in April 2024 and the next is expected around 2028.

A network built on top of another blockchain, usually Ethereum, that processes transactions faster and cheaper and then records the result on the main network.

A program that lives on a blockchain and runs by itself when its conditions are met, with no intermediary. A bug in its code can cause losses that no one can reverse.

A token designed to hold a stable value, almost always one dollar, backed by reserves such as cash and Treasury bills. Its stability depends on the quality of those reserves and on the issuer. USDT and USDC are the most used.

The funds hold operating cash in USD or USDC for tactical entries and rebalancing.

Locking assets on a proof-of-stake network to help validate transactions in exchange for a reward. The reward is variable and staking adds technical and liquidity risks.

Representing a real-world asset, such as a bond, a building or an invoice, with a token on a blockchain. RWA stands for real-world assets.

It is part of the Innovation Fund universe.

The chance of losing money because the other side of a relationship, such as an exchange, a custodian or a lender, defaults, goes bankrupt or freezes the assets. The FTX bankruptcy in November 2022 is the most widely known case in the industry.

A platform where digital assets are bought and sold. If you leave your assets there, the exchange controls the keys and you hold a balance in your name, which adds counterparty risk.

A secret number that authorizes moving the assets at an address. Whoever holds it controls the funds: lose it and access is gone; let someone else get it and they can empty the address.

A list of 12 or 24 words that rebuilds a wallet’s private keys. It is the master key: no legitimate party will ever ask for it, not an exchange, not tech support, not a fund manager.

A model in which each investor’s assets are kept apart from the manager’s and from other clients’. It reduces the risk that one party’s problems reach the others.

Daleki Capital uses segregated custody under contract: each investor’s contract specifies the custody.

Holding the keys to your assets yourself, with no intermediary. It removes third-party risk, but backups, protection and inheritance become entirely your responsibility.

Software or a device that stores private keys and signs transactions. A hot wallet is connected to the internet and is more convenient; a cold wallet stays offline and reduces exposure to attacks.

Bitcoin’s share of the total crypto market capitalization. When it rises, capital is concentrating in Bitcoin; when it falls, capital is usually moving into other assets.

The stage of a bear market when many investors sell at a loss, out of fatigue or panic. It tends to coincide with high volume and extreme fear.

The Bitcoin Fund can accelerate accumulation during structural capitulation, under rules written in advance.

A 0 to 100 gauge that sums up crypto market sentiment from volatility, volume, social media and other data. Low values signal fear and high values greed. It is a thermometer, not a buy or sell signal.

The total computing power securing the Bitcoin network. The higher it is, the more expensive the network is to attack.

An asset’s price multiplied by the units in circulation. It helps compare sizes, but it does not tell you how much money can move in or out without moving the price.

Anything that happens and is recorded directly on a blockchain. On-chain data, such as flows between wallets or fees paid, is public and can be analyzed.

The Bitcoin Fund modulates its accumulation with on-chain signals and the macro regime.

An exchange-traded fund that buys actual bitcoin and gives exposure to its price from a regular brokerage account. The US SEC approved the first ones in January 2024.

The total value of stablecoins in circulation. It is watched as a gauge of how many digital dollars are available inside the ecosystem.

Total crypto market capitalization excluding Bitcoin. It shows how the rest of the ecosystem behaves as a whole.

It is the Innovation Fund benchmark, for comparison and not as a return target.

The index or asset a fund’s result is compared against. It is a yardstick, not a return target.

A structured review of a manager, a fund or an asset before investing: who operates it, which contract governs it, where the assets are, what it costs and what can go wrong.

The highest value your investment reached after the last performance fee was charged. Only gains above that level pay a performance fee, so you never pay twice for recovering a drop.

How easily an asset can be sold quickly without moving its price much. In stressed markets, liquidity disappears first in small assets.

The Innovation and AI funds exclude tokens without enough liquidity to exit in stressed markets.

The period during which capital is committed and cannot be withdrawn. It exists so the manager is never forced to sell at the worst moment.

At Daleki Capital: 12 months, then quarterly redemptions.

An annual percentage the manager charges on assets under management, whether or not there are gains.

At Daleki Capital: 2% per year across all four funds.

A percentage of net gains the manager charges. Designed well, it aligns interests: the manager earns more only if your investment grows.

At Daleki Capital: 20% with a high-water mark across all four funds.

How far ahead you must request a withdrawal before a redemption window. It leaves time to sell positions in an orderly way.

At Daleki Capital: 60 days for the Bitcoin and Ethereum funds, and 90 days for the Innovation and AI funds.

Contracts whose value depends on another asset’s price. They can hedge or speculate, often with leverage.

The Bitcoin and Ethereum funds exclude futures and speculative derivatives.

The loss measured from the highest value reached to the lowest point that follows. Bitcoin and Ethereum have fallen more than 70% from their highs in previous bear markets.

Investing with borrowed money to amplify exposure. It multiplies gains and losses, and in crypto it can wipe out an entire position in hours.

None of the four funds uses sustained leverage.

A token whose price depends almost entirely on social media attention and speculation, with no product or cash flow behind it. It can multiply or vanish within days.

The Ethereum, Innovation and AI funds exclude them explicitly.

A fraud that pays supposed returns to earlier investors with money from new ones. It lasts while capital keeps coming in and collapses when it stops.

A token sale before an open market exists. It usually combines little information, no liquidity and a supply concentrated in the team’s hands.

How much and how fast a price moves. In digital assets, double-digit moves within a few days are common, in both directions.