Sam Ikkurty - Constitutional Rights & Legal Advocacy

Dear Partners,

All of you must have received the November statements showing a monthly performance of 245.08%. As extraordinary is this number, I feel we have barely even started this bull run in Decentralized Finance. In March the total value locked in Defi was close to $1 billion and today we are at $15 billion. I see this market growing to $500 billion in the next 2 years.

1. I received a few emails on the incorrect value reported in the RCIF website. I apologize for this mistake.Tower Fund statements reconcile all the amounts to 18th decimal place and are always accurate. While calculating the return percentage on the website, we have taken the GAV (gross asset value) and divided that number by NAV value as reported at the end of October. That is wrong. I learned yesterday that it has to take into account $1.3 million of new contributions we received and that gets added to the NAV and it goes into the denominator. Also the numerator (GAV) also has many adjustments like performance fees, audit fees, tax preparation fees etc which are not subtracted. This caused the error in calculation. We will be taking the website down for the next 3 days. We will upgrade the database and we have a plan of action to recalculate the fund performance by taking the price information via APIs from Coingecko. We are always a monthly NAV fund. We are trying to provide an approximate value of investor's holding on a real-time basis. See screenshot below for the calculations. Please note that the distribution row includes performance fees as well as distributions to the investors.

2. Synthetix has incorporated a change to the collateralization ratio. It has dropped from 600% to 500%. It is suddenly like pennies from heaven. We hold 712,119 tokens of Synthetix. But it allows us to increase our SUSD debt. I was able to mint an additional 165,700 dollars. This newly minted money can be invested in other assets like Badger or Zlot token. Palm Beach confidential is an expensive newsletter run by Teeka Tiwari. Apparently he recommended this to his subscribers and put a price target for Synthetix as $2192 per token. We have been buying Synthetix last year starting from 25 cents.

3. In the last week, I continued to add to our Badger position. Badger is supposed to launch another token $DIGG as staking reward to all the Badger holders. What is interesting is that this token is going to algorithmically track the price of Bitcoin! our rewards from SNX are coming in the form of SUSD which tracks to inflationary currency USD. But this is much better, as our rewards value in dollars will go up if bitcoin price goes up. It is similar to getting free bitcoins. We currently own 38,824 tokens of Badger.

4. So far we have earned around 8852 tokens of HEGIC from our zlot staking. This amount is too small for me to claim every week with respect to the cost of gas in ethereum. Therefore, I am letting it pile up. I have not updated our Retained Earnings spreadsheet with zlot income. Zlot is still generating a yield of 60% to the stakers of HEGIC tokens which is surprisingly very high.

5. I have seen this image with returns from various asset classes. It is remarkable that in the middle of this grave pandemic all these markets are going up. The primary reason is that the US printed 30% of all the outstanding US dollars this year. In other words, the purchasing power of our dollars in the bank account has dropped by 30% just this year alone. This effect can be seen in the stocks which are denominated in dollars.

I have initiated the wire transfers for November distributions today. Some of you, who opted for ACH transfers will take a couple of days before the amount is reflected on your bank account.

Wishing you all a wonderful weekend!

warm regards,

Sam Ikkurty

Managing Partner

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