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Adeel Khan
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Executive Summary
Alphemy Master Fund I LP

March 2020

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Digital Asset Class

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1. Correlation: very low or negative correlation with traditional asset

classes.

2. Diversification: Research by Yale professors recommends that

portfolio managers should allocate 1.6—6.1% to crypto assets(1).
3. Asymmetric Risk: Returns of 20—100x have been achieved. This
provides for unlimited upside with specific downside (loss of
investment).

4. Timing: Market is in the “smart money” phase. Retail investors will

enter eventually.
5. Underlying Asset: Investors can now buy into infrastructure
protocols—not just into applications—where value creation originates.
(1) Liu, Y., & Tsyvinski, A. (2018). Risks and returns of cryptocurrency
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(No. w24877). National Bureau of Economic Research.
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Investment Thesis
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Internet as we know it has inherent economic deficiencies due to

limitations of underlying technology (HTTP and TCP/IP).
1. Blockchain technologies have proven ability to restructure and
decentralize the Internet allowing the creation, transfer and
distribution of economic value on a peer-to-peer basis.
2. Networks that allow nodes to communicate in a decentralized way will
become the infrastructure layer of the future internet.
3. Infrastructure protocols which succeed in taking their role in the
decentralized internet present unparalleled value generation potential.

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Directors
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Since 2011, co-founders Roman and Danylo, have jointly analyzed and invested in emerging digital assets
with tremendous success. Through Alphemy Capital, they now intend to become a tier one player in this
sector. Ibrahim will bring his deep institutional finance and fund experience to Alphemy Capital’s board.

Roman Khrushch Co-Founder/Director, is a seasoned business executive and investor. From 2012
until recently, he served in multiple executive roles in various geographies at Philip Morris
International. Previously, he was CEO of a leading Ukrainian FMCG company with over 3,000
employees. He has an M.B.A. from the Chicago Booth School of Business, a certificate by the
Association of Chartered Certified Accountants and an M.Sc. in Economics.

Danylo Knysh Co-Founder/Director, is an accomplished entrepreneur with 15 years of experience

with ventures dealing with technology, precious metals, consumer electronics and telecom
equipment. He is also a co-founder of Sol Noctis, a developer of solar photovoltaic power plants in
Spain. He also founded Moneda Nueva and Top World Coins, both companies involved in
commemorative precious coins. He has a Ph.D. in Economics.

Ibrahim Mardam-Bey Director, is a senior professional with over 30 years of experience in

international finance and a track record in capital raising, structuring, and business development. He
founded and led several investment banking and PE boutiques. He possesses a broad range of
unique experiences and a track record in international finance and merchant investment banking. He
has a B.S. in Finance & M.A. in International Economics from American University in Washington DC.
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Historical Performance
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Risk Management
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1. Key-man Risk: The co-founders’ expertise is uniquely comparable

allowing for functional substitution.
2. Structural Risk: In an emerging asset class the regulated fund form
provides for checks and balances through tier A service providers
unlike direct investments.
3. Opportunity Cost Risk: In a dynamic and collaborative ecosystem, an
open team architecture allows access to the best services and data
available.
4. Allocation Risk: Employing rebalancing has enabled the co-founders
to outperform alternative strategies in the asset class.
5. Efficiency Risk: Exercising staking allows for value enhancement by
generating income.

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Tier A Providers
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Auditor and Tax Advisor Digital Custodians

Auditor for 60+ digital asset Multiple providers engaged to diversify
funds in the Cayman Islands counter-party concentration risk

Administrator Investor Services

US$1.5B+ under administration Experienced principals in fund
for digital asset funds structuring and investor relations

Banking Partner US, Cayman and Swiss Counsel

Top 40 US bank with total Leading law firms in their respective
assets of $50B+ jurisdictions on fund formation and operation

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Summary Terms of Investment

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Target Size US$ 200 million

Co-founder’s Investment 15% up to US$ 30 million
($10 million already invested)
Term 5 years
Type Closed-ended
Management Fee 2%
Performance Incentive 20%
Minimum Investment US$ 1 million
Net Asset Value Monthly
Reporting Quarterly
Structure Cayman Islands master-feeder
Current status Launched on March 2, 2020
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Cayman Master-Feeder Fund Structure

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U.S.A. Cayman Islands Rest of the World

US taxable
Founders
Investors Shareholders Shareholders

Alphemy Limited
Limited General Partner I LLC Partners
Partners (a Caymanian LLC)

General Partner to US
feeder, International
feeder & Master Fund

Alphemy Alphemy Non-US and US tax-

U.S. Fund I LP International Fund I LP exempt investors
(a Delaware LP) (a Caymanian exempted LP) Limited
Partners
Limited Limited
Partner Partner

Alphemy Alphemy
Master Fund I LP Capital SA
(a Caymanian exempted LP) Investment (a Swiss LLC)
Manager

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Disclaimer
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This document is highly confidential and intended solely for the person to whom it has been provided by Alphemy Capital SA (“Alphemy Capital”) or on its behalf to evaluate a potential
interest in the investments and strategies described herein and for no other purpose. As such, this document may not be shown, copied, transmitted, published or distributed without the
express prior written consent of Alphemy Capital and is not intended for public use or distribution. Notwithstanding anything to the contrary herein, each recipient of this document (and
each employee or representative of each recipient) may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of: (i) any fund managed by
Alphemy Capital and (ii) any of such fund's transactions, and all materials of any kind (including opinions or other tax analyses) relating to such fund's tax treatment and tax structure.
The distribution of the information contained herein in certain jurisdictions may be restricted, and, accordingly, it is the responsibility of any prospective investor to satisfy itself as to
compliance with relevant laws and regulations. This document is intended for qualified investors only and their representatives, and does not constitute either an offer to sell or a
solicitation of an offer to buy any interest in any fund managed by or associated with Alphemy Capital. Any such offer would only be made by a definitive offering memorandum and
related subscription documentation (together, the “Offering Documents”) that contains material information not contained herein and which supersedes this information in its entirety.
An investment in a Alphemy Capital fund is speculative, involves a high degree of risk, should be considered only by investors who do not require access to their capital and who can
withstand the loss of all or a substantial portion of the amount invested. Neither Alphemy Capital, nor its principals, officers, employees or associated funds or entities hereby makes any
representation to any person or entity as to the suitability for any purpose of an investment in any fund associated with Alphemy Capital. The information contained herein does not take
into account the particular investment objectives or financial circumstances of any specific person who may receive it. The information herein is not intended to provide, and should not
be relied upon for, accounting, legal or tax advice or investment recommendations. Any decision to invest in a strategy or fund managed by Alphemy Capital or its affiliates should be
made after reviewing the Offering Documents, conducting such investigations as the investor deems necessary and consulting the investor’s own investment, legal, accounting and tax
advisors in order to make an independent determination of the suitability and consequences of an investment.
Except as otherwise indicated herein, the information contained in this document is provided as of the date listed herein, supersedes any prior disclosures and is subject to change
without notice. Alphemy Capital believes that the information contained herein is accurate and/or derived from sources which are reliable, but Alphemy Capital does not warrant its
accuracy or completeness.
Alphemy Capital has no obligation (express or implied) to update any or all of the information contained herein or to advise you of any changes; nor does Alphemy Capital make any
express or implied warranties or representations as to the completeness or accuracy of such information or accept responsibility for errors herein. The information presented is for
illustrative purposes only and does not constitute an exhaustive explanation of the investment process, investment strategies or risk management.
This document contains certain “forward-looking statements and estimates” that are based on assumptions and judgments with respect to, among other things, future economic,
competitive and market conditions, future business decisions, expectations with regard to distressed defaults, representative investments, anticipated portfolio concentration, investment
opportunities, ability to create value, nature of investments, fund characteristics, strategy implementation, investment criteria, and/or strategy objectives, all of which are difficult or
impossible to predict accurately and many of which are beyond Alphemy Capital' control. Because of the significant uncertainties inherent in these assumptions and judgments, you
should not place undue reliance on these forward-looking statements and estimates, nor should you regard the inclusion of these statements as our representation that a Alphemy
Capital fund will achieve any strategy, objectives or other plans. Estimates included herein are in no way guarantees of actual performance or returns. The opinions expressed herein are
current opinions as of the date appearing in this material only.
Figures provided herein are rounded as applicable. Past performance is neither indicative nor a guarantee of future results.

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