108 Token

The Token Generator.

ZCF II, is a Cayman Islands exempted company incorporated under the Companies Law.

The Token Generator is not an investment fund and Tokens do not represent debt or equity interests in the Token Generator.

Investment objective and strategies.

Tokens are intended to provide Token-holders with a convenient, transparent, low cost and diversified tool that allows for easy investments into the blockchain economy. There can be no assurance that the investment objective will be achieved.

The directors of the Token Generator will seek to achieve the investment objective by utilising the investment strategies set out in the section below headed "Investment Objective, Strategies and Restrictions".

Management

The directors of the Token Generator have overall responsibility for the management and administration of the Token Generator. However the directors of the Token Generator may delegate certain investment management responsibilities to a third party investment manager from time to time. The directors of the Token Generator may also delegate  to the Administrator certain administrative functions.

The Token sale

Tokens will only be offered to Eligible Purchasers.

Risk factors

A purchase of Tokens involves significant risks and is suitable only for those persons who can bear the economic risk of the loss of their entire purchase and who have limited need for liquidity. There can be no assurance that Tokens will perform as  ntended.

Potential Token purchasers should review carefully the discussion under the section below headed "Certain Risk Factors". They should carefully review this White Paper and the documents referred to herein before deciding to purchase Tokens.

Index Administration Fees; Expenses

The Token Generator will be entitled to an Index Administration Fee of 0.5% per quarter of the Token Generator Net Asset Value before deduction of that quarter's Index Administration Fee as at the last Valuation Date in each quarter.

The Token Generator will pay all the costs of its operation and management, including the organisational expenses, the fees and expenses payable to service providers and all expenses related to its index administration program, any direct or indirect transaction costs as well as brokerage fees. 

Restrictions on sale and transfer

Tokens will only be issued to, and may only be transferred to, persons who are Eligible Purchasers.

Distributions

Token-holders will not receive any distributions as a result of holding Tokens. This does not preclude the directors of the Token Generator from making a distribution at any time in the future if it considers it appropriate to do so.

Liquidity

Token Generator will undertake best efforts to facilitate liquidity for token holders via partnerships/arrangements with both affiliated and unaffiliated partners.

Taxation The Token Generator is not subject to tax in the Cayman Islands (other than an annual filing fee and an annual registration fee) under the current laws of the Cayman Islands. Token-holders should consult their own advisers as to the particular tax consequences for them of their proposed investment.