Chateau Alternative Debt (CHAD.D)

15% yield, Private debt product

Chateau Alternative Debt (CHAD.D) is an ERC-20 token that provides exposure to Covenant VC’s Credit Income Opportunities strategy via Chateau Capital Corp’s investment in Covenant International Fund SPC.

The price of CHAD.D tracks the price of $1 of investment in Covenant International Fund, marked up monthly according to it's proportional stake in the fund's NAV. A full overview of this offering is available here.

Preferred Returns

CHAD.D has a preferred return of 15%, after which Chateau Capital Corp will charge a carry fee.

Historically, CHAD.D has averaged 18-21% returns annually, with an extra 2%-4% after accounting reconciliations due to using conservative write offs that mark late payments to 0.

Maturity

CHAD.D tracks an stake in Real World small medium business lending. These instruments mature after 12 months. As a result, investors can expect to redeem their investments with profit in 12 months. Early redemption is possible with DeFi secondary markets. Limited early redemption liquidity may be available during each issuance and redemption window.

Key Numbers

CHAD.D Price

The price of CHAD.D is calculated by: Net Asset Value of the entire vehicle / Number of CHAD.D tokens in circulation. The price tracks $1 invested in CHAD.D since inception of the fund, and is adjusted based on the latest financial report made available to Chateau Capital Corp.

Net Asset Value /Total Value Locked

The Net Asset Value is the value of assets locked in this vehicle. It is the equivalent of Total Value Locked in other DeFi protocols. Since CHAD.D is not a very liquid instrument.

Issuance

To issue CHAD.D, stake USDT on the issuance window on the website. CHAD.D will be minted during the issuance window, which is the first week of every month.

Note: a Chateau passport is required to participate in issuance Fees: Chateau charges a 2.5% issuance fee collected during the issuance process.

Redemption

To redeem CHAD.D, simply enter the amount intended in the redemption window on the website. Limited liquidity will be available during the redemption window, which is the first week of every month. Note: A Chateau passport is required to participate in redemption

Renewal

CHAD.D is automatically renewed if not redeemed after 12 months.