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Contributions

This section explains how capital contributions work in Aeternum, including the current contribution structure, how flexibility is handled over time, and the consequences of failing to meet contribution obligations.

Important Notice on Contribution Readiness

All members are expected to maintain a minimum runway of one (1) to two (2) months of contributions at all times.

This syndicate is designed for long-term discipline. Members should only participate if they are confident in their ability to meet recurring contribution obligations.

Failure to plan for contribution continuity introduces risk to the collective and will trigger predefined consequences as outlined below.

Contribution Structure

Monthly Contribution (Current Policy)

At present, members are expected to contribute a fixed amount of ₦1,000,000 per month during open contribution periods.

This baseline contribution:

  • Ensures predictable capital inflow
  • Enables disciplined long-term planning
  • Keeps participation fair and consistent across members

Contributions are made into the syndicate's designated account and are converted into investment units at the prevailing Net Asset Value (NAV) per unit.

Built for Variable Contributions (Future-Proof Design)

While the current contribution amount is fixed, Aeternum is structurally designed to support variable contributions in the future.

This means:

  • Members may contribute more or less than ₦1,000,000, subject to policy changes
  • Contributions do not need to be equal across members
  • Ownership remains fair because contributions are converted into units at the current unit price

No redesign of the fund structure is required to support this flexibility.

The system rewards consistency and early participation, but does not penalize members who contribute at different levels over time.

How Contributions Translate Into Ownership

When you contribute capital:

1The current unit price is determined using NAV
2Your contribution is divided by the unit price
3You receive units representing your economic stake

Ownership is always calculated as:

Your Units ÷ Total Units Outstanding

Default, Penalties & Escalation Framework

Aeternum applies a graduated enforcement model designed to balance flexibility with accountability. The intent is not punishment, but protection of the syndicate and its active members.

Penalty & Escalation Timeline

DurationStatusConsequence
1 month missedInitial Default
  • No units issued for the month
  • 5% fine applied to the missed monthly contribution
  • Contribution must be settled before participation resumes
2 consecutive monthsWarning
  • No units issued for missed months
  • Fines continue to accrue on unpaid contributions
  • Formal notice issued
3 consecutive monthsRestricted
  • Cumulative penalties remain payable
  • Suspension of decision-making and voting rights
  • Member may not participate in governance or approvals
4–5 consecutive monthsProbation
  • Continued loss of governance rights
  • Excluded from discretionary investment rounds
  • Exit preparation may be initiated
6 consecutive monthsForced Exit
  • Member's position is put up for sale
  • Company has first right of purchase at NAV-based valuation
  • If declined, other members may purchase the position

Forced Sale Mechanics (6-Month Default)

Where a member fails to contribute for six (6) consecutive months:

1The member's position becomes eligible for sale
2The company has the first right of purchase
3If the company declines, existing members may purchase the position
4Valuation is based on the prevailing NAV per unit
5Settlement occurs through defined liquidity windows or structured instalments

This process is structured, transparent, and rule-based — not discretionary.

Key Principles

No units are ever confiscated without compensation

Existing units retain economic value until exit

Governance rights are tied to active participation

Enforcement is automatic, not personal

Capital is flexible. Commitment is not.

Example Contribution Breakdown

Scenario

Monthly contribution:₦1,000,000
Initial unit price:₦1,000
Month 1

You contribute ₦1,000,000

Units received:₦1,000,000 ÷ ₦1,000 = 1,000 units
Month 6

Fund has grown, unit price increases to ₦1,200. You contribute another ₦1,000,000

Units received:₦1,000,000 ÷ ₦1,200 = ≈ 833 units

Outcome

  • Total units held: 1,833 units
  • Early contribution earned more units
  • Later contribution entered at a higher valuation
  • Ownership remains fair and proportional

If You Skip a Month

  • • No units are issued for that month
  • • Your total units stay the same
  • • A 5% fine is applied to the missed contribution
  • • Future contributions resume at the prevailing unit price

Summary

Members are expected to join Aeternum with sufficient financial runway and a long-term mindset. While the structure allows for flexibility, persistent defaulting undermines the collective and is addressed decisively through predefined penalties and exit mechanisms.

This policy exists to protect: active contributors, long-term capital strategy, and trust within the syndicate.