Key points
- The same 16 written questions, compared in one table, show each provider's gaps.
- The record comes first: which one is legal, and how mistakes are fixed when entries are only added.
- Your administrator should still keep the official books and calculate NAV.
- A redemption should be traceable from request to payment, including who signs and who holds the money.
- What is live matters more than what is planned. A clear "not yet" beats a vague "yes".
Picture a demo that goes well. The provider shows a share register on a blockchain and a long feature list. Then the COO asks one question: if the blockchain and the fund's own register disagree, which one is right? The answer is a pause, then "we can fix it."
Why a checklist helps
That pause tells the COO more than the demo does. Moving a fund onto a blockchain is mainly a record-keeping change, and a checklist keeps the decision on operations rather than sales claims.
The 16 questions below are a starting point. Your counsel and your administrator will have their own.
The record
Every other answer depends on the record.
- Which record is the legal record? Some setups keep the legal record off chain. Ask where yours is kept, and get the answer in writing.
- What happens if two records differ? You need a named record that wins, and a process to fix the other.
- Who can add or change entries? Ask about permissions, approvals and sign-in.
- How are mistakes corrected? On a blockchain ledger, entries are only added. A good answer shows how a correction appears and who approves it.
Here is question 4 in practice.
Example: one wrong entry. Say Investor A buys $50,000 of shares at $10.00 a share. That is 5,000 shares. The fund's documents name the off-chain register as the legal record, and it shows 5,000. The blockchain entry shows 50,000 because of a typing error. The register wins. Nobody edits the first entry. A second entry removes the extra 45,000 shares.
| Entry | Change | Balance |
|---|---|---|
| 1. Apr 1, purchase | +50,000 | 50,000 |
| 2. Apr 3, fixes entry 1 | -45,000 | 5,000 |
Both entries stay visible. A good answer to questions 2 and 4 says who approves entry 2, where the reason is written, and how the two records are checked to match again.
The administrator
Keeping two records in step is ongoing work, so bring your administrator in early.
- Does your administrator agree to the setup? They keep the books under it, so ask before you sign.
- Who keeps the official books and calculates NAV? It should remain your administrator. Ask how the figure reaches the manager's records, and who checks it.
- Can your administrator get records and exports in a form their systems accept? Ideally they can do it without asking you each time.
Investors and money
Records describe the money. These questions follow the money.
- How do investors fund and get paid, and who holds the money at each step? Ask which options exist, such as stablecoin or fiat, and which steps need a person.
- How does a redemption work? Look for a named role at each step: who reviews, who approves, who signs, and how cash is checked before payment.
- What happens when the fund cannot pay every request? Your fund terms decide this. Ask how the system supports partial payment.
Risk and exit
Every provider sounds ready in a demo. These questions test what works today and how you would leave.
- What is live today? The provider should separate working features from plans. Ask for a demo of the exact steps you need.
- Which network is in use? Ask whether it has carried real investor money, or only test transactions.
- How do you leave, and what does it cost? Ask for an export of all records in a common format, who owns them, and any exit fees.
- Who has signing power? Ask how many people must approve a payment or a change to the share register, and what happens if one of them leaves your team.
Rules and limits
The last two move from the system to paper: your documents and the contract.
- What do your lawyers say? Ask counsel whether your documents allow shares to be represented on a blockchain, and whether investors must be told.
- Which promises are in the contract? A sales page is not a commitment. If a claim matters to you, ask for it in writing.
How to compare answers
One table makes gaps visible. Mark any answer that is vague, any claim with no proof, and any step where the responsible role is not named.
Here, two made-up providers answer five questions. Copy the layout and add the rest.
| Question | Provider A | Provider B |
|---|---|---|
| 1. Legal record | Off-chain register, named in the contract | "Both are official" (vague) |
| 4. Corrections | New entry, manager approves, reason logged | "We can fix it" (vague) |
| 9. Who signs a redemption | The fund manager | "Our ops team" (no named role) |
| 11. Live today | Redemptions live. Transfers not yet. | "Everything" (no demo offered) |
| 13. Exit | Full export as CSV, exit fee set in contract | Full export as CSV, no exit fee |
In this sample, Provider B has a flag on four of five rows but the better exit terms. Provider A has one "not yet", which tells you exactly what to wait for, and an exit fee you can price. Send each flagged question back and ask for a written answer before you decide.
That brings it back to the COO's question. The point is not to catch a provider out. It is to learn, before you sign, who owns the record, the books and the money when something goes wrong.
Where Tahoe fits
Which record is right? Every provider should expect that question, us included. We are building Tahoe as fund operations infrastructure, and two questions above apply to it:
- On questions 1 and 2: each share is represented on a blockchain and also tracked off chain in a registry.
- On question 6: your administrator keeps the books and calculates NAV. The manager enters that figure in a Record NAV form.
Ask us the same 16 questions, in writing.