CMFDH II — Overview, Strategy Summary & FAQ

Yes. Bitcoin volatility can lead to losses, and derivatives can amplify or reshape risk depending on exposure and market conditions. The strategy’s goal is to manage risk and seek income, not to eliminate risk.

No. There are no guarantees. Income from futures basis or options premium can vary and may be negative in certain environments after costs, slippage, or adverse moves.

Operational and counterparty risks can be significant in crypto markets. These may include venue risk, custody risk, technology risk, and execution risk. Investors should evaluate how these are addressed in official materials.

Some investors choose to self-manage, but derivatives strategies can require substantial monitoring, risk controls, and operational infrastructure. Others prefer professional management and documented processes.

Liquidity terms can differ by fund. While crypto markets trade continuously, fund subscriptions and withdrawals typically follow defined windows to support orderly management and investor fairness. Refer to official offering documents for specifics.

CMFDH II is a Bitcoin-focused strategy that uses derivatives (such as futures and options) with the aim of generating income and managing volatility. The approach is designed to be systematic and risk-aware rather than purely directional.

No. While the strategy may maintain Bitcoin exposure, it also uses derivatives to seek additional income and to manage risk. This can change how the strategy behaves compared to a long-only “buy and hold” position.

The strategy may use two primary components: (1) futures positioning intended to capture market structure effects (such as basis/contango when present), and (2) options selling (such as covered call approaches) intended to collect premium. Returns depend on market conditions and risk management decisions.

No. There are no guarantees of income, performance, or capital protection. Derivatives strategies can reduce or reshape certain risks, but they also introduce additional risks and may underperform in some market environments.

$25,000.

Standard hedge fund-style fees: 2% management and 20% performance, with a high watermark.

Investor communications are typically provided on a quarterly basis. Additional updates may be available upon request depending on the policies and materials provided to investors.

In drawdowns, derivatives positions may behave differently than a long-only Bitcoin position. Depending on positioning and market conditions, the strategy may reduce some forms of exposure or may experience losses. Risk management aims to respond to volatility and liquidity conditions, but adverse outcomes are still possible.

Many “yield” products rely on lending, leverage, or opaque structures. This strategy focuses on exchange-traded derivatives mechanics (futures and options) and emphasizes collateral awareness and risk controls. Specific implementation details are provided in official investor materials.

Key risks may include market risk (Bitcoin volatility), options and futures risks (including margin and liquidation risk), execution and liquidity risk, and operational/counterparty risk depending on venues and custody arrangements. Investors should review official disclosures carefully.

CMFDH II may be suitable for investors who understand Bitcoin volatility and derivatives risk, and who are comfortable with a strategy that seeks income while actively managing exposure. Suitability depends on an individual’s objectives, risk tolerance, and liquidity needs.

Review the official fund materials, including disclosures and risk factors, and speak with the fund team to understand strategy mechanics, constraints, and whether it aligns with your objectives.