Strategy Curator Vetting Framework

This framework provides a streamlined approach to assess prospective strategy curators for Neutral Trade vaults. Curators are evaluated across four key dimensions to ensure alignment with our risk management and yield optimization objectives.

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Evaluation Overview

Rating	Score	Description
Excellent	5	Institutional-grade, exceeds all requirements
Strong	4	Meets all requirements with notable strengths
Acceptable	3	Meets minimum requirements
Below Standard	2	Requires remediation before approval
Unacceptable	1	Does not meet standards

Minimum Passing Score: 3.5 out of 5.0 (weighted average)

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Dimension 1: Strategy & Track Record (40%)

Performance Requirements

Metric	Excellent (5)	Strong (4)	Acceptable (3)	Below (2)	Unacceptable (1)
Live Trading History	>2 years	1-2 years	6-12 months	3-6 months	<3 months
Annualized Return	>40%	30-40%	20-30%	10-20%	<10%
Sharpe Ratio	>2.5	2.0-2.5	1.5-2.0	1.0-1.5	<1.0
Max Drawdown	<10%	10-15%	15-20%	20-30%	>30%

Verification Checklist

Requirement	Status
Verified track record (exchange API, third-party audit, or portfolio tracker)	☐
Historical trade logs with timestamps	☐
Clear strategy description with defined edge	☐

Dimension 1 Score: ___ / 5.0

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Dimension 2: Risk Management (30%)

Risk Controls Assessment

Criteria	Requirement	Score
Maximum Leverage	Clearly defined limits (preferred: ≤3x)	/5
Daily Loss Limit	Hard stop defined (e.g., -3% to -5%)	/5
Drawdown Response	Documented de-risking procedures	/5
Position Concentration	Single asset limit defined (preferred: <30%)	/5

Key Questions

1. What is your maximum leverage policy?

2. What are your hard stop-loss limits (daily/weekly)?

3. How do you respond to drawdown events?

4. Do you have system redundancy and manual override capabilities?

Dimension 2 Score: ___ / 5.0

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Dimension 3: Team & Operations (20%)

Team Assessment

Criteria	Scoring Guidance	Score
Relevant Experience	Background in quantitative trading, crypto, or traditional finance	/5
Team Depth	Key person risk assessment (single operator vs. team)	/5
Current AUM	>$300M (5) / $150-300M (4) / $50-150M (3) / <$50M (2)	/5
Reporting Capability	Ability to provide live/daily/weekly performance reports	/5

Operational Checklist

Requirement	Status
Clear organizational structure	☐
Documented operational procedures	☐
Willingness to provide read-only API access	☐

Dimension 3 Score: ___ / 5.0

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Dimension 4: Legal & Compliance (10%)

Entity & Compliance Check

Criteria	Status	Notes
Registered legal entity	☐
Jurisdiction disclosed	☐
Regulatory status clarified	☐
No adverse findings (sanctions, legal issues)	☐

Dimension 4 Score: ___ / 5.0

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Consolidated Scorecard

Dimension	Weight	Score	Weighted Score
Strategy & Track Record	40%	/5.0
Risk Management	30%	/5.0
Team & Operations	20%	/5.0
Legal & Compliance	10%	/5.0
TOTAL	100%		/5.0

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Decision Matrix

Score	Decision	Action
4.5 - 5.0	Approved	Fast-track onboarding, consider higher allocation
3.5 - 4.4	Approved with Conditions	Standard onboarding, address identified items
3.0 - 3.4	Pending	Requires remediation before final approval
< 3.0	Declined	Does not meet minimum standards

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Red Flags (Automatic Decline)

Any of the following results in automatic escalation or decline:

• Inability to verify track record

• History of significant losses without explanation

• Refusal to provide standard documentation

• Regulatory issues or sanctions exposure

• Inconsistencies in reported performance data

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Onboarding Process (Post-Approval)

Week 1-2: Setup

• Execute partnership agreement

• Complete KYC/AML verification

• Establish reporting obligations and communication channels

Week 3-4: Integration

• API connectivity setup

• Risk monitoring integration

• Reporting format alignment

Week 5-8: Pilot Period

• Initial allocation deployment

• Daily performance monitoring

• Weekly review calls

Post-Pilot: Go-Live / Extended Pilot / Withdrawals

• Go-live, extension of the pilot period or withdrawals from the strategy based on pilot performance

• Transition to ongoing monitoring

• Monthly performance reviews

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For questions about the vetting process, contact: [email protected]