Fund Cancellation & Capital Return Constraints

Cancel a fund before its closing conditions are met only after the Issuer or authorized Administrator records the decision. The normal, failure, and recovery sequence is Cancel, recover, and hand off work.

Triggers and decision criteria

The Issuer or authorized Administrator records the decision when a fund is terminated before successful closing. Triggers include:

• Failure to reach the minimum target by the stated deadline.
• A compliance or regulatory decision to halt the fund.
• An Issuer withdrawal permitted by the fund terms.

See the fund status lifecycle for technical lifecycle details.

Investor and custody constraints

When cancellation is confirmed, new subscriptions are blocked immediately. Pending Subscription Agreements are voided, and the cancellation history is archived without deleting it. The Investor's portfolio reflects the resulting status.

For a contingent fund, the qualified custodian or other settlement owner promptly returns the full principal held in escrow. The return goes to the originating bank account or originating crypto wallet. No fees are deducted, and the platform must not redirect the return to a third-party destination.

Communication and records

The Issuer or Administrator records the reason, decision owner, affected Investors, fund and Investment states, return instructions, provider or chain result, and notification. The notification identifies the reason for termination and any timing information the payment rail provides.

The cancellation reason and proof of refund are preserved for a minimum of six years under the responsible compliance owner's retention policy. The record also preserves evidence that the Issuer did not receive funds before the permitted release.

See SEC Rule 15c2-4, Reg CF Rule 304, and FINRA Rule 4511 where applicable.

See Unsuccessful fund outcome for the failure-specific constraints and Investment Cancellation for Investor cancellation or rescission constraints.