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Why IndexMaker Matters

Let’s talk about the uncomfortable truth of asset management: Compliance and Liquidity costs eat your returns. In the traditional world, if you want to launch an ETF, you aren’t just paying for lawyers. You are paying for “Market Making.” To get an ETF listed, you often need millions of dollars in “seed liquidity” just so the asset is tradable. If you don’t pay a bank to sit there and make the market, your spread blows out, and no one buys your fund. This high “Capital Expenditure” (CAPEX) creates a barrier. To justify those costs, funds have to charge high fees or demand massive minimum investments. The result? A system where managers are forced to be bloated, and investors are forced to overpay.

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The CAPEX Problem

In Traditional Finance (TradFi), launching a new investment product is a logistical nightmare. You need to incorporate a specific vehicle, file a prospectus, and then solve the “Chicken and Egg” liquidity problem. It costs hundreds of thousands of dollars before you take in your first dollar of capital. This financial friction kills innovation.
  • It kills niche ideas: You can’t launch an index for a specific, small sector because the cost of seeding liquidity makes it unprofitable.
  • It kills access: You can’t serve global markets because the compliance overhead of onboarding them via traditional banking rails is too high.
So, we end up with a market of generic, high-fee products built for the wealthy, while the rest of the world gets left behind.

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The IndexMaker Fix

We built IndexMaker to strip out the fat. We use a hybrid legal-tech structure that solves both the Legal Cost and the Liquidity Cost. 1. The “Master-Series” Structure (Solving Legal Costs) Instead of forming a new company for every single index, we use a Marshall Islands Master-Series DAO LLC. This “Master” entity spins up unlimited “Series” cells.
  • Segregated Liability: Every index is legally firewalled. If Index A fails, it doesn’t touch the assets of Index B.
  • Instant Deployment: We don’t need a law firm to launch a new index; we deploy a smart contract and sign a template Series Agreement.
2. The Issuer-AP Model (Solving Liquidity Costs) This is the game changer. In TradFi, the “Authorized Participant” (AP) is an external bank you beg to provide liquidity. In IndexMaker, the AP is a controlled entity (domiciled in Panama) that takes orders directly from the Decentralized Issuer Network.
  • Decentralized Coordination: The Issuer Network aggregates user “intents” (buy/sell orders) and validates them on-chain.
  • Execution Efficiency: It then instructs the AP to execute the trade instantly.
  • No Seed Money Needed: Because the liquidity is coordinated on-chain via intents, we don’t need millions of dollars of idle capital sitting there “making the market.” We get instant liquidity without the massive seed costs.
We dropped the CAPEX to near zero. When the cost to run the fund crashes, the fees charged to the user can crash with it.

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Unlocking “Impossible” Markets

This efficiency allows us to do things that Wall Street simply can’t afford to do. 1. The “Long Tail” of Indexes Because we don’t need expensive market makers, we can launch niche, specialized strategies that wouldn’t be profitable in a standard ETF structure. A Manager can profitably run a hyper-focused index with a fraction of the AUM required in the traditional world. 2. On-Chain Retirement for the World There are billions of people in financially regions who have access to crypto stablecoins but no access to American asset managers.
  • No Americans Allowed: To be clear, these products are not available to U.S. persons or entities to maintain our regulatory stance.
  • Global Inclusion: For everyone else, this offers a “savings account” experience, allowing them to build an on-chain retirement portfolio using thier stablecoins.

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In Short

IndexMaker is a framework for efficiency that:
  • Slashes Legal CAPEX: Replaces lawyers with Series LLCs.
  • Eliminates Liquidity Costs: Replaces expensive Market Makers with a decentralized Issuer Network.
  • Lowers Fees: Passes the operational savings directly to the end user.
  • Maintains Safety: Keeps assets secure via segregated Series and regulated custodians.
We aren’t just lowering fees; we are expanding the map of who gets to participate in wealth creation.