--- title: ArCoin FAQs | Arca Labs description: Commonly Asked Questions about ArCoin and the Arca U.S. Treasury Fund. image: https://www.arcalabs.com/hubfs/Arca%20Labs%20Featured%20Image.png --- [![Arca Labs Horizontal Logo](https://www.arcalabs.com/hs-fs/hubfs/Arca%20Labs%20Horizontal%20Logo.png?width=886&height=123&name=Arca%20Labs%20Horizontal%20Logo.png "Arca Labs Horizontal Logo")](https://www.arcalabs.com/?hsLang=en) [![Get In Touch](https://no-cache.hubspot.com/cta/default/4536350/0bdc341f-26c7-4dee-9e70-1189f25042ac.png)](https://cta-redirect.hubspot.com/cta/redirect/4536350/0bdc341f-26c7-4dee-9e70-1189f25042ac) [![Arca](https://no-cache.hubspot.com/cta/default/4536350/a3d80acd-bd5b-4c0e-9811-ce7379f7ce4e.png)](https://cta-redirect.hubspot.com/cta/redirect/4536350/a3d80acd-bd5b-4c0e-9811-ce7379f7ce4e) ** ** ** [![Arca Labs Horizontal Logo](https://www.arcalabs.com/hs-fs/hubfs/Arca%20Labs%20Horizontal%20Logo.png?width=886&height=123&name=Arca%20Labs%20Horizontal%20Logo.png "Arca Labs Horizontal Logo")](https://www.arcalabs.com/?hsLang=en) [![Get In Touch](https://no-cache.hubspot.com/cta/default/4536350/0bdc341f-26c7-4dee-9e70-1189f25042ac.png)](https://cta-redirect.hubspot.com/cta/redirect/4536350/0bdc341f-26c7-4dee-9e70-1189f25042ac) [![Arca](https://no-cache.hubspot.com/cta/default/4536350/a3d80acd-bd5b-4c0e-9811-ce7379f7ce4e.png)](https://cta-redirect.hubspot.com/cta/redirect/4536350/a3d80acd-bd5b-4c0e-9811-ce7379f7ce4e) ** ** ** Search **Menu** ** ** # ArCoin FAQs [ Invest in the U.S. Treasury Fund ](https://invest.arcalabs.com/#/login?redirect=/home) ## FAQs ## Commonly Asked Questions about ArCoin and the Arca U.S. Treasury Fund ## Fund Questions ** ** Who are the banking and financial partners you are using for the Arca U.S. Treasury Fund and ArCoin? **Administrator:** Ultimus Fund Solutions** Adviser: **Arca Capital Management, LLC** Auditor: **RSM US LLP** Custodian: **UMB, N.A.** Distributor: **Distribution Services, LLC** Legal Counsel: **Morrison Foerster LLP** Technology Services Provider: **Securitize Inc.** Transfer Agent: **Securitize, LLC ** ** What is the Fund's distribution policy? The *Fund* intends to distribute its net earnings and realized gains, if any, in the form of dividends from net investment income (“dividends”) and distributions of net realized capital gains (“capital gain distributions” and, together with dividends, “Distributions” and each, a “Distribution”). The *Fund* intends to accrue dividends daily and distribute them to shareholders of record quarterly. Capital gain distributions, if any, usually will be declared and paid annually in December. The *Fund* does not have a fixed distribution rate nor does it guarantee that it will pay any distributions in any particular period. Unless a shareholder elects otherwise, their distributions will be reinvested in additional ArCoin under the *Fund’s* distribution reinvestment plan. See the *Fund’s* [prospectus](https://arcoin.arcalabs.com/documents/prospectus?hsLang=en) for more information. ** ** How does an ArCoin holder know that the Fund has sufficient reserves? The *Fund* will report its NAV on a daily basis and will publish the NAV each business day on the [ArCoin website](https://arcoin.arcalabs.com/?hsLang=en).  The NAV of an ArCoin is calculated by taking the total value of all the cash, U.S. Treasury Securities, and any other assets in the Fund’s portfolio, minus any liabilities, and dividing it by the number of ArCoin outstanding to get a per share NAV. The *Fund *will publish and deliver financial statements on a semi-annual basis that show a complete list of all assets held by the *Fund. *The *Fund’s* annual report will be audited by an independent registered public accounting firm, RSM US LLP. Although the Investment Company Act of 1940 requires a minimum set of requirements to which the Fund will fulfill, we will make best efforts to report as frequently as possible in order to ensure the highest level of transparency. ** ** What is the tax treatment for capital gains from the Arca U.S. Treasury Fund? *The Arca U.S. Treasury Fund *will issue a 1099 to any ArCoin holders for the previous year. Please consult your financial advisor on how capital gains are treated. ** ** Why are shares of the Arca U.S. Treasury Fund digitized? We believe the advantages of offering digital shares of the *Arca U.S. Treasury Fund *in the form of ArCoin include: - Allowing investors the ability to quickly transfer digital asset securities with other investors (peer-to-peer) in small increments; - Enabling the *Fund* and its transfer agent to track transactions that are published on the Ethereum blockchain on a real-time basis; - Removing financial intermediaries by eliminating the need to go through a broker to purchase ArCoin. ** ** What are the fees associated with Arca U.S. Treasury Fund? To see the full list of fees, please refer to the [prospectus](https://arcoin.arcalabs.com/documents/prospectus?hsLang=en). ** ** Where are the assets of the Arca U.S. Treasury Fund kept? As required by the ’40 Act, Arca U.S. Treasury Fund has entered into a custody agreement with a third-party custodian, UMB, N.A. The Fund’s assets are held in safekeeping at this third-party bank. ** ** How will the Arca U.S. Treasury Fund manage its portfolio? The fund's portfolio investments will be managed by Arca's Chief Investment Officer, Jeff Dorman. ** ** What happens if yields go negative? Although past performance does not guarantee future results, when interest rates decline, the value of the Fund's portfolio can be expected to rise. Conversely, when interest rates rise, the value of the Fund's existing portfolio of securities can be expected to decline. The *Arca U.S. Treasury Fund* takes into account capital appreciation and yield when trying to maximize total returns. The* Fund’s* investment objective is to seek maximum total return consistent with preservation of capital. ** ** What is the Arca U.S. Treasury Fund? The *Arca U.S. Treasury Fund* is a closed-end fund invested primarily in a portfolio of short and medium duration U.S. Treasury bills, bonds and notes. The Fund is registered under the Investment Company Act of 1940 (’40 Act). ** ** What kind of assets will the Arca U.S. Treasury Fund hold? The *Arca U.S. Treasury Fund's *mandate is to invest at least 80% of its assets in U.S. Treasury bills, bonds, and notes. ** ** How Transparent is the Arca U.S. Treasury Fund? Because the *Arca U.S. Treasury Fund* is registered under the Investment Company Act of 1940, the Fund must comply with mandatory fund reporting requirements, including providing audited annual financial reports, semi-annual reports, trade confirmations, monthly statements of account, a daily net asset value (“NAV”) and regulatory filings on all material events. ## Digital Share Questions ** ** Who can buy ArCoin? Currently, ArCoin are available for purchase by U.S. Persons, including individuals over the age of 18 who are either U.S. citizens or permanent U.S. residents, and any U.S. corporations, partnerships or similar organizations. There is no requirement that purchasers be either accredited investors or qualified purchasers, as those terms are defined under U.S. securities laws. Arca will continue to evaluate whether ArCoin can be used in any additional jurisdictions, in light of local securities laws and other applicable regulations and laws. Please note, if purchasing through the ArCoin website, the minimum investment is $1,000 for an initial subscription. ** ** Do I need to undergo AML/KYC to own ArCoin? All ArCoin holders will have to undergo AML/KYC and will have to set up a *Fund* account with the *Fund’s *transfer agent. ArCoin holders must provide an Ethereum wallet address that will be whitelisted. If you do not have an Ethereum wallet address, one can be set up in the Arca Labs portal. ** ** What does peer-to-peer transfer mean and why does it matter? Currently, most traditional securities have to be purchased and transferred using a brokerage firm. Having the ability to transfer ArCoin directly to another investor using blockchain technology eliminates the need for a financial intermediary. Arca believes this will give ArCoin additional utility. ** ** Are ArCoins expected to be volatile? ArCoin are digital shares of a portfolio primarily consisting of short-duration U.S. Treasuries (bills, bonds and notes), which are generally considered to be a relatively “lower risk” asset. Therefore, it is anticipated that ArCoin will have lower volatility, but the portfolio’s net asset value may be affected by moves in interest rates or other factors. ** ** What is ArCoin and how is it related to the Arca U.S. Treasury Fund? ArCoin are digital asset securities issued by the* Arca U.S. Treasury Fund. *By purchasing ArCoin, you are investing in shares of the *Arca U.S. Treasury Fund.* ** ** How do I purchase ArCoin? ArCoin can be purchased directly from the *Fund* using Signet, ACH or wire (USD) from our [portal](https://invest.arcalabs.com/#/home). Once AML/KYC is successfully completed, you have provided your Ethereum wallet address and you have established a Fund account with the transfer agent, you will be able to purchase ArCoin in any increment over $1,000. Please note, in order to purchase ArCoin, you will need to meet the following requirements: - If registering as an individual:  Must be over the age of 18 and either a U.S. citizen, permanent U.S. resident, or an alien admitted for work who is considered a “U.S. person” for tax purposes - If registering as an entity: Must be a U.S. corporation, partnership, or organization and must be an authorized signer of the entity - Must be on U.S. soil during the time of purchase ** ** Who do I contact if I have questions about ArCoin? Please contact [support@arcalabs.com](mailto:support@arcalabs.com). ** ** Is ArCoin a stablecoin? No, ArCoin is not a stablecoin. Nonetheless, in certain circumstances, we believe ArCoin could be an attractive alternative to a stablecoin. Each ArCoin is a share of the *Arca U.S. Treasury Fund*, and the net asset value (“NAV”) of ArCoin will vary with the value of the Fund’s portfolio of securities. Although we expect that this will be a relatively low volatility portfolio, it is not risk-free and the NAV can fluctuate. ** ** What can ArCoin be used for? ArCoin can be used for multiple purposes. For individuals, ArCoin could potentially be a useful and productive digital asset with the potential to experience limited volatility when compared to other digital assets. For financial institutions and digital-assets enterprises, ArCoin could potentially be used in the following scenarios: clearing and settlement, lending, treasury management, payments, and industries where banking has created friction.   Holders of ArCoin should be aware that the Arca US Treasury Fund has a fundamental policy to make monthly offers to shareholders to repurchase a portion of its common shares. Subject to the review and approval of the Fund’s Board of Trustees, the Fund will offer to repurchase between 5% and 25% of the ArCoin outstanding (not to exceed 25% of the Fund’s outstanding shares over a three-month period). Please see the [prospectus](https://arcoin.arcalabs.com/documents/prospectus?hsLang=en) for more information regarding the repurchase offers. ** ** Are ArCoin ERC-20 (Ethereum) compatible? Yes, ArCoin is a ERC-20 token ![Arca-Labs-Page-Gradient](https://www.arcalabs.com/hubfs/Arca-Labs-Page-Gradient.png "Arca-Labs-Page-Gradient") ### Who do I contact if I have questions about ArCoin? 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These discussions are provided for general informational purposes only and are not solicitations or offers to sell securities or investment advisory services.   **Arca Capital Management, LLC, a wholly owned subsidiary of Arca Labs LLC, serves as adviser to the Arca U.S. Treasury Fund, distributed by Distribution Services, LLC, Member FINRA/SIPC. Arca and Distribution Services, LLC are not affiliated. An investor should carefully consider the investment objectives, risks, charges, and expenses of the Arca U.S. Treasury Fund before investing.** **This and other information is available in the Fund’s prospectus, which should be reviewed carefully prior to investing. To obtain a prospectus, please call 1-888-526-1997. **   Investors may not be able to sell their shares at the time or in the quantity of choosing regardless of how the Fund performs. The Funds Annual Operating Expense Ratio, as reflected in the current prospectus is 113.34%, however, Management has agreed to an expense cap of .75% through an expense limitation agreement valid until April 30, 2026. For more details relating to the fund’s expenses, please review the prospectus. No assurance can be given that the Fund will achieve its investment objective, and investment results may vary substantially over time and from period to period.   An investment in the Fund involves risk including loss of principal. An investment in the Fund is suitable only for investors who can bear the risks associated with limited liquidity in the shares and the uncertainty of emerging technologies, and should be viewed as a long-term investment.   Other risks specifically associated with the Arca U.S. Treasury Fund are detailed in the prospectus and include no history of operations risk, conflict of interest risk, interval fund risk, no minimum amount of proceeds risk, fund closure risk, liquidity risk, tax related risks, credit and non-payment risk, interest rate risk, portfolio management risk, market risk, call risk, valuation risk and issuer risk. The Arca U.S. Treasury Fund is one of the first registered funds to offer digital asset securities and there are additional risks associated with this feature of the fund, including regulatory risk, liquidity risk, emerging technology risk, operational and technology risk, and risks specifically associated with the Ethereum blockchain. There is the risk that management may be unable to successfully use blockchain technology to validate ownership and transfer ArCoin.   For details regarding all of the risks described above, please review the prospectus. Arca Capital Management, LLC, a wholly owned subsidiary of Arca Labs LLC, serves as adviser to the Arca U.S. Treasury Fund, distributed by Distribution Services, LLC, Member FINRA/SIPC. Arca and Distribution Services, LLC are not  affiliated. Arca Capital Management, LLC, a wholly owned subsidiary of Arca Labs LLC, serves as adviser to the Arca U.S. Treasury Fund, distributed by Distribution Services, LLC, Member FINRA/SIPC. 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