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12. Appendices

This section contains supplementary materials that provide additional context, details, and reference information to support the main road-map document.

12.1 Glossary of Terms

TermDefinition
AIFMAlternative Investment Fund Manager. An entity regulated under the EU's Alternative Investment Fund Managers Directive (AIFMD) that manages alternative investment funds.
AIFMDAlternative Investment Fund Managers Directive. The European Union regulatory framework for alternative investment fund managers.
AMMAutomated Market Maker. A type of decentralized exchange protocol that uses a mathematical formula to price assets.
AUMAssets Under Management. The total market value of investments managed by a fund or investment firm.
CNMVComisión Nacional del Mercado de Valores. The Spanish government agency responsible for financial regulation of securities markets in Spain.
CPOCommodity Pool Operator. An individual or organization that solicits or accepts funds for participation in a commodity pool.
CTACommodity Trading Advisor. An individual or organization that provides advice on trading futures contracts, options on futures, or retail off-exchange forex contracts.
DDQDue Diligence Questionnaire. A comprehensive document that provides detailed information about an investment manager's business, strategy, and operations.
DeFiDecentralized Finance. A blockchain-based form of finance that does not rely on central financial intermediaries.
Delta-NeutralA portfolio strategy consisting of multiple positions with offsetting positive and negative deltas so that the overall delta of the assets in question totals zero.
ESGEnvironmental, Social, and Governance. A framework used by institutional investors and regulators to evaluate companies beyond traditional financial metrics.
FILFondo de Inversión Libre. Spanish regulated investment fund structure similar to a hedge fund.
GreeksFinancial measures of the sensitivity of an option's price to its underlying determining parameters (delta, gamma, theta, vega, rho).
Implied VolatilityThe market's forecast of a likely movement in a security's price, derived from option prices. Often referred to as IV.
ISAE 3402International Standard on Assurance Engagements 3402. A global standard for assurance reports on controls at a service organization, often required by institutional investors.
KPIKey Performance Indicator. A measurable value that demonstrates how effectively a company is achieving key business objectives.
LPALimited Partnership Agreement. The legal document that outlines the terms of a limited partnership investment vehicle.
MiFID IIMarkets in Financial Instruments Directive II. A legislative framework instituted by the European Union to regulate financial markets and improve protections for investors.
Multi-factor Risk AnalysisAn approach to risk assessment that incorporates multiple variables and data points to identify potential exposures not captured by traditional metrics.
PPMPrivate Placement Memorandum. An offering document provided to prospective investors that details the terms, risks, and other information about a private investment opportunity.
RAIFReserved Alternative Investment Fund. A Luxembourg investment vehicle that can be marketed to professional investors without requiring prior approval from the Luxembourg regulator.
RLReinforcement Learning. A type of machine learning where an agent learns to make decisions by taking actions in an environment to maximize a reward.
SGEICSociedad Gestora de Entidades de Inversión Colectiva de tipo Cerrado. Spanish regulated entity for managing closed-ended collective investment vehicles.
SGIICSociedad Gestora de Instituciones de Inversión Colectiva. Spanish regulated entity for managing collective investment institutions.
Sharpe RatioA measure of risk-adjusted return, calculated by dividing the excess return of an investment over the risk-free rate by its standard deviation.
SICAVSociété d'Investissement à Capital Variable. An open-ended collective investment scheme common in Western Europe, especially Luxembourg, Switzerland, Italy, Spain, Belgium, Malta, France, and the Czech Republic.
SIFSpecialized Investment Fund. A regulated, operationally flexible and fiscally efficient Luxembourg investment vehicle for institutional, professional and sophisticated investors.
SILSociedad de Inversión Libre. Spanish regulated investment company structure similar to a hedge fund.
SOC 1Service Organization Control 1. A report on controls at a service organization relevant to user entities' internal control over financial reporting.
SOPStandard Operating Procedure. A set of step-by-step instructions compiled by an organization to help workers carry out routine operations.
Sortino RatioA variation of the Sharpe ratio that differentiates harmful volatility from total overall volatility by using the asset's standard deviation of negative returns.
VaRValue at Risk. A measure of the risk of loss for investments, representing the maximum potential loss over a specific time period at a given confidence level.
VegaA measure of the sensitivity of an option's price to changes in the volatility of the underlying asset.

12.2 Detailed Team Biographies

Joaquín Béjar, CTO/CIO & Co-Founder

Professional Background

Joaquín brings over 20 years of experience spanning traditional finance and cryptocurrency markets. His career has been defined by a unique combination of deep technical expertise and sophisticated financial knowledge, allowing him to bridge the gap between quantitative trading strategies and cutting-edge technology implementation.

Professional Experience

Joaquín has worked with leading firms in both traditional finance and cryptocurrency markets, contributing expertise across multiple domains:

Notable Organizations

His career spans roles at respected institutions including Deutsche Bank, Flow Traders, and specialized cryptocurrency trading firms, where he has consistently bridged the gap between quantitative finance and technology implementation.

Education

Publications & Research

Technical Skills

[Partner Name], CEO & Co-Founder

Detailed biography to be added

12.3 Policies, SOPs & Compliance Manuals

Risk Management Policy (Summary)

Capital Delta employs a comprehensive risk management framework designed to identify, measure, monitor, and control risks across all aspects of our operations. Our risk management policy is built on the following principles:

  1. Risk Identification: Systematic processes to identify all relevant risks, including market risk, operational risk, liquidity risk, and counterparty risk.

  2. Risk Measurement: Quantitative and qualitative methods to assess risk exposure, including VaR, stress testing, scenario analysis, and sensitivity metrics.

  3. Risk Limits: Clearly defined risk limits at portfolio, strategy, and position levels, with automated enforcement mechanisms.

  4. Monitoring & Reporting: Real-time monitoring of risk exposures with regular reporting to management and oversight bodies.

  5. Governance Structure: Defined roles and responsibilities for risk management, including independent risk committee oversight.

Trade Execution SOP (Outline)

  1. Pre-Trade Analysis

    • Strategy selection criteria
    • Position sizing methodology
    • Risk parameter verification

  2. Order Generation

    • Signal validation process
    • Order type selection guidelines
    • Execution timing considerations

  3. Execution Workflow

    • Smart order routing logic
    • Venue selection criteria
    • Slippage management techniques

  4. Post-Trade Analysis

    • Execution quality assessment
    • Transaction cost analysis
    • Performance attribution

  5. Documentation & Recordkeeping

    • Trade logging requirements
    • Audit trail maintenance
    • Regulatory reporting obligations

Compliance Manual (Key Components)

12.4 Sample Legal/Offer Documents

Private Placement Memorandum (PPM) - Template Structure

  1. Executive Summary

    • Fund overview and investment objectives
    • Management team background
    • Summary of terms

  2. Investment Strategy

    • Detailed description of investment approach
    • Target markets and instruments
    • Risk management framework

  3. Fund Terms

    • Legal structure and domicile
    • Management and performance fees
    • Subscription and redemption terms
    • Minimum investment requirements

  4. Risk Factors

    • Market risks
    • Strategy-specific risks
    • Operational risks
    • Regulatory and legal risks

  5. Management & Governance

    • Investment manager information
    • Key personnel biographies
    • Service providers
    • Governance structure

  6. Tax Considerations

    • Overview of tax implications for investors
    • Reporting requirements

  7. Legal & Regulatory Information

    • Regulatory status
    • Applicable laws and regulations
    • Investor eligibility requirements

Limited Partnership Agreement (LPA) - Key Provisions

Risk Disclosure Statement - Core Elements

12.5 References and Resources

Regulatory Frameworks

ESG and Sustainability

Quantitative Trading and Risk Management

Industry Associations and Networks

11. ESG & Sustainability Considerations