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How Capital Moves Through the Tuatara Hedge Fund

An animated tour of the fund's data and execution pipelines: a parcel of capital and a headline travel the same town, and every number they carry is computed by the same arithmetic the fund runs.

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Application size (USD) Funds sharing the deployment Deploy % of reserve Assets the vector model returns Softmax temperature β Pair book equity (USDC) Pair gross cap (USDC) Market move at the mark (%) Fund escrow from an external wallet Arm ripple + index engines live

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Application Desk — Every parcel of capital starts as an application, not a deposit. Capital cannot simply appear on the books. A visitor files an application with an amount and a wallet. It is a record with a status, not money: nothing is debited, nothing is promised. The parcel you are following is that record, and everything downstream will refer back to it.
Escrow Fork — Capital reaches escrow by one of two roads: a wallet of its own, or a commitment from the trading balance. The first junction. An applicant can fund escrow from an external wallet, which the platform only ever observes on-chain, or from a balance already held on the exchange. The two paths are kept apart so that an external deposit is never mistaken for a platform transfer, and vice versa.
Escrow Lockhouse — Every thirty minutes a watcher reads the escrow balances; nothing here ever moves money. The lockhouse is watched, never opened. A deposit address is scanned for the exact amount; the money stays where the applicant put it. Sweeping, pooling or routing user escrow is forbidden by a standing operator rule, so the parcel is counted here, not moved.
Subscription Hall — One irreversible signature turns a commitment into fund capital; the other road gives it back. Commit and reveal. The applicant commits to subscribe, the amount is re-verified against what the chain shows, and the record flips from committed to subscribed. A release goes the other way on request. Thirteen applications have reached this hall so far; nine of them are funded.
Realization Bridge — Subscribed capital crosses on-chain to the fund's capital wallet, signed before it is sent so a crash can never send it twice. Realization turns a verified commitment into fund capital. The take is the smaller of the attributed amount and what the wallet actually holds after other claims, so a balance can never be counted twice. Anything under one dollar is skipped; the bridge itself costs gas, which the model carries as an assumption.
Reserve Vault — The fund's reserve is never a running total; it is re-read from the ledger every time it is needed. Realized capital lands in reserve cash. The operator sizes a deployment as a percentage of reserve split evenly across the funds, two decimals, bankers' rounding. A fund's slice below the 25 USDC minimum is not deployed at all: the engine refuses to bridge dust.
News Intake — Six wires are read continuously; a headline becomes a courier only after it is scored. Signal arrives on a wire, not by request. Press releases, regulatory filings, M&A captures above a billion dollars and global events stream in continuously; the same feed powers the public headline page. When this page is open, the courier carries whatever the wire delivers next.
Scoring Mill — Duplicates are folded, a BM25 relevance score is computed, and only the top five survive the day. Every headline gets a score before anyone sees it. The scorer weighs novelty, the assets it names and how similar headlines moved markets before. The score here is sampled, because the real one depends on the live wire, but the threshold it is tested against is the real threshold.
Headline Approval — A person approves the headline before a single asset is named; a rejected courier turns back here. Scored is not the same as used. A headline above the bar is approved for basket building; one below it is dropped and the courier carries nothing further that day. The gate is deliberate: a quiet day produces no trades, and that is the correct output.
Vector Model Gate — The article itself is sent to the vector model, which answers with the assets the story moves and the ones it is hiddenly connected to. The vector model reads the article itself and returns the assets the story moves, marked direct when the company is named and hidden when the connection is inferred. The platform treats it as a black box behind an API. It never invents a basket on its own: a vendor outage defers the card rather than guessing.
Basket Foundry — Relevance scores become weights through a golden-ratio softmax; the basket starts its index at exactly 100. Weights come from a golden-ratio softmax: each leg's share is proportional to phi raised to its scaled score times a temperature of four. A cap of fifty percent and a floor of one percent per leg are applied and the result renormalized. Fewer than half the legs scored, and the foundry falls back to equal weights.
Reconstitution Ring — A newcomer must beat the weakest member by half again and clear a noise floor before a swap is even proposed; a person approves it. Members are not forever. A candidate may replace the weakest member only if its score clears a floor of 0.2 and beats the weakest by a factor of one and a half. Both tests are run every cycle; a proposal that passes still waits for a person to approve it.
Ripple Yard — A merger over a size floor seeds a basket of the two most-connected names, tilted by momentum, sized in whole shares, held for five trading days. An acquisition above 1.5 billion dollars ripples through its suppliers and rivals. The yard keeps the two best-connected names within 53 percent of the top score, tilts size by a MACD z-score, and buys whole shares with cash in lieu. Positions are held five trading days and the whole book stops at a ten percent loss.
Index Dock — An index unit is one share of every leg; the dock buys whole units with an even slice of capital and trues up weights only when drift passes two percent. An AIB is bought as index units: one unit is one share of every leg, so the basket tracks its index exactly at any size. Each hour the dock measures drift as half the sum of weight differences; above 200 basis points it plans sells and buys through USDC. Moving principal into the sleeve on-chain is built but dormant.
Pair Hedge Engine — A short book and a long book are sized so their rises cancel while their falls stay net short, climbing a six-step ladder that only ever shrinks on doubt. A short book of names the model expects to fall and a long book of names expected to hold. A Kalman filter tracks the hedge ratio so rises cancel while falls stay net short. Six steps each either pass or shrink the book; a stale mark, a missing liquidation price or a correlation spike freezes it.
Fund NOC — Every order is written to a journal as a proposal first; a person approves the batch, and a rejected convoy turns around. The Network Operations Centre is where the parcel and the courier meet. Three engines draw on the same reserve, so the NOC journals every target before anything is sized: which engine, how much, and whether the lap is paper or live. Anything that opens new exposure is queued for a human decision.
Execution Gate — Paper fills at the live reference price and transmits nothing; live needs the mode and a master switch both on. Paper or live is decided here, per engine. The ripple and index engines run paper by default and need an explicit arm; the pair engine trades the internal venue wallet. Either way the journal is written first, so a paper lap produces the same record as a live one minus the fill.
Brokerage100 Dock — Buys fish a discount below the bid and never lift the ask; sells start above the ask and walk down to the bell; no order is ever a market order. Orders fish, they never chase. A buy sits an eighth below the bid; a sell starts an eighth above the ask and walks down in sixteenths, paced so the last rung lands before the close. Children are sized to the fee break-even of 200 shares, and a tail too small to stand alone folds into the last slice.
Perp Pier — On the crypto venue reductions go out first and need no permission; every leg carries a trailing stop that can only ever tighten. Reductions go first and never wait for approval; opens and increases go second and always do. Every order carries a stop that can tighten but never loosen, and a list of names that may never be shorted is checked before sizing. A gross cap left unset blocks all new exposure rather than assuming one.
Home Exchange — Fund shares trade on the platform's own book: pre-trade risk, price-time matching, settlement to the ledger, and a rule that the platform never buys from its users. AIB tokens trade on the platform's own book, so issuance is kept inside a band: new units are created at NAV plus the mint spread and redeemed at NAV minus the redemption fee. A market price outside the band is reported as a premium or discount in basis points, never acted on automatically.
Mark-to-Market Tower — Every position is re-priced from the live price plane; the fund's sleeve ceiling is whatever it is worth right now. Each open position is marked to the canonical feed and the difference from entry is booked. The mark is what the stop-loss reads, so a ten percent drawdown on the ripple book is caught here, not at the venue. Positions are totals only; the public surface never shows a position's dollar size.
NAV House — The share price is the index price at a cent per point; the order book floats above or below it, and the creation band keeps the gap honest. Index price is a Laspeyres chain: each leg's current price over its base price, weighted, summed. A leg with no price drops out and coverage falls; below sixty percent the index is not published at all. Price per share is the index price times one cent, and the premium to the market is shown in basis points.
Redemption Gate — Fourteen days' notice lands on a fixed two-week grid; a redemption that outruns the reserve proposes a de-risk, which goes back through the NOC. A redemption needs fourteen days' notice and settles on the next date of a fixed fortnightly grid. The date is computed, not negotiated, so every investor in the same window settles together. The engine de-risks the sleeve by exactly the amount due, and only from that fund's own capital.
Daily Post — At ten past four the fund's day is posted to its channels; this is where the parcel's journey is written down. At the end of the day the numbers are posted: reserve, deployed, open deals, approvals waiting, price per share. A public report goes out on the same schedule. The next lap starts with a new parcel and a new headline, and the town runs faster now that every station has been explained.

How Capital Moves Through the Tuatara Hedge Fund

Fidelity ledger

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How Capital Moves Through the Tuatara Hedge Fund

Fidelity ledger

Stations

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