Q&As

TrexDAO Announcement (20 April 2022)

Q1: Shouldn't trexDAO have to buy the tokens on the market, thereby increasing the price for everyone? For our partnership with trexDAO, they will not be purchasing REFI tokens on the market. However, such an arrangement would differ for future partnerships/agreements with new institutional investors, as we would like for future partnerships to benefit existing REFI token holders. trexDAO's US$1.5m investment is positioned in a separate wallet from the current REFI farm (US$3m), and the partnership is a way of bringing REFI greater exposure to larger investors and encouraging their network to look at us while proving the FaaS model to them. We understand that some of trexDAO's members have also bought REFI tokens on the market, thereby increasing the buy pressure of the REFI token. Here's an example of how we will report our treasury/farm moving forward: REFI Total Assets Under Management (AUM) = US$4.5m (which includes the US$1.5m investment amount from trexDAO) REFI Farm = US$3m (i.e. current farm value as of 20 April 2022)

Q2: What's the profit sharing agreement with trexDAO? It is a non-profit sharing agreement. The REFI team earns via management fees, and the management fees are then routed into the REFI farm, which benefits existing REFI token holders as well. For future partnerships/agreements with new institutional investors, we will definitely be looking at different potential scenarios with profit sharing agreements.

Q3: Now the farm has technically passed $4m, will there be a vote regarding reflections? Yes, there will be an on-chain vote regarding reflections. It will be held next week. We will provide more details on the vote once available.

Q4: What are the details of this deal and how does it benefit existing holders? The deal helps to accelerate REFI's treasury growth, off-set operational costs, and attract more institutional investors/DAOs to invest in REFI or allow us to advise on their treasury investments.

Q5: Could you please explain the financial mechanics of this partnership, given that this is the first “direct deposit” into the farm from an investor without any purchase of tokens? Thanks! Same response as Q1.

Q6: Does the new inflow rank pari passu with the existing holdings? Same response as Q1. As trexDAO will not be purchasing REFI tokens on the market, they do not have voting or governance rights.

Q7: Wondering what the benefits to existing token holders are and assuming there is no dilution - 1 billion tokens is fixed. Same response as Q4. There is no dilution to existing REFI token holders.

Q8: What are the benefits to holders in trexDAO? Will they be offered tokens at a discount or as part of the payment for reflections/dividends? Same response as Q4 and Q1.

Q9: Is trexDAO getting any governance/control over decision-making powers? How will they vote without REFI tokens, or are they silent partners? Same response as Q6.

Q10: Does this carry any liability for REFI holders? Eg. if there was a big drop in treasury, does trexDAO have seniority to REFI holders if they suddenly pull funds? Would we ever have to bail them out? There is no liability for existing REFI holders. trexDAO's US$1.5m investment is positioned in a separate wallet from the REFI farm. If trexDAO decides to pull its funds, it will not affect the REFI farm.

Q11: What's the impact on the REFI team? i.e. the team has been growing (which is great), so I assume these kind of deals allow you to recruit more. Right? Also who gets to do what in the team? Congrats! The sizeable investment from trexDAO helps affirm our position as the top project in the FaaS space, and adds further credibility to our treasury advisory services. With a growing treasury, we may potentially recruit more members into our farming team when necessary.

Q12: Will terms of this deal set a standard for future partners, or will each deal be negotiated individually? There is no doubt that the trexDAO deal will help affirm our #1 position in the FaaS space. Nonetheless, future deals will be negotiated on a case-by-case to maximise the interests of all parties involved.

Q13: So how exactly does this partnership work? Is the $1.5 million being used to buy tokens or are they just adding that to the farm and profits are split between them and all holders? The US$1.5m investment from trexDAO is positioned in a separate wallet from the current REFI farm (US$3m). The US$1.5m is not used to purchase REFI tokens. It positioned under REFI's assets under management (AUM), and we earn management fees from managing the US$1.5m amount. The management fees are then routed into the REFI farm, which benefits existing REFI token holders as well.

TrexDAO Announcement (20 April 2022) — Follow-Up Questions

Q1: It was mentioned by Huf that we have more than $10m AUR. What do those consist of and how does it fare to benefit our farm so far? We have separate farming advisory mandates for other crypto projects like Durham Sports Crypto ($RBI), whereby they retain custody of their own funds but entrust us to advise on their portfolio in return for management and performance fees. These fees are then routed into REFI’s farm. This has been disclosed in our daily farm update (21 April 2022).

Q2: Since the trexDAO funds are “separate” from the REFI farm, shouldn’t the tax vote only take place once the ReFi farm hits $4m? The on-chain vote will be held as our "total AUM" has surpassed US$4m.

Q3: Why is the trexDAO is different from other treasury mandates? (i.e. being included into total REFI AUM) We consider the trexDAO investment as "Third Party AuM", which refers to any funds that we directly have custody over. We will be charging a 2% management fee and 20% performance fee on profits (PnL) generated on this "Third Party AUM", which will go directly to the farm - growing the REFI Portfolio too. This is different from other separate farming advisory mandates REFI has for crypto projects like Durham Sports Crypto ($RBI), whereby they retain custody of their own funds but entrust us to advise on their portfolio in return for management and performance fees.

Q4: If the trexDAO investment is being held separately, how do the mechanics of investment with this money work? Will any profit on that $1.5m amount belong solely to trexDAO? Yes, any profits on the US$1.5m amount will belong to trexDAO. However, REFI earns a 20% performance fee on any profits made, which goes directly to the REFI Portfolio.

Q5: Is there a minimum lock up period (time) for the $1.5m? Are there KPIs that you need to hit to keep the money deposited? Or is this more of a see how it goes and an example to use for future deals? It is a multi-year partnership with 0% hurdle rate, 2% management fee and 20% performance fee on profits (PnL) generated on this "Third Party AUM", which will go directly to the farm. This has been disclosed by our Lead Farmer, Huf, in REFI's Telegram channel.

Q6: Is the full 2% management fee routed to the farm or does part of it go to the REFI team? If it’s the full 2%, how is this deal helping cover operating costs? As much as we value transparency, we do not disclose this to prevent our competitors from having an edge over REFI.

Q7: This seems to open the door to wealthier individuals/DAOs to hire our the farming team for less (no taxes). How will team make sure core REFI is main focus if more deals like this come through? Any future products developed by the REFI team will ensure that REFI holders are satisfied with the product and will directly benefit from it.

Q8: Since the monetary benefit from this deal is that REFI earns management fees - what is the ratio between what goes to the farm and what goes to “expenses”? As much as we value transparency, we do not disclose this to prevent our competitors from having an edge over REFI.

Q9: Given the difficulty in finding information about trexDAO, how was initial contact made? (i.e. REFI marketing, B2B, contacts; trexDAO contacted ReFi; cold calling). One of our former REFI team members, Oshi, made initial contact with trexDAO via Twitter. The relationship was then maintained by him and our current farming team. We also did an AMA with trexDAO in early 2022. It took weeks of calls, formal responses, investment analysis and deep dives and we are really proud to have set the blueprint. The partnership has been structured to benefit existing REFI holders. Kudos to every team member that has been involved in the process.

Q10: As the trexDAO wallet grows, will the management fee structure change or remain constant? (Is it a % of growth or flat fees?) The management and performance fee structure will remain constant for the time being.

Q11: Does the 20% performance fee reduce the $30k operating cost for the farm? This may be a more direct view of the benefit of the partnership. 20% performance fee on profits (PnL) generated on the "Third Party AUM" will go directly to the farm.

Q12: Distributions to token holders will be based on profits on a $3M farm and voting milestones are now based on a $4.5M “farm”? How will farm size be reported with these two sizes in play? Kindly refer to the latest daily farm update published on 21 April 2022. We disclose the breakdown of “Total AUM” into 2 categories: (1) “REFI Portfolio” and (2) “Third Party AUM”.

Q13: Not related to the new partnership but more to farm as a whole, when will we see Multifarm treasury dashboard? The farming team is working with Multifarm on finalizing the dashboard and will look to provide an update really soon.