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Chen Fang
CEO, Lumina
New Tools & Best Practices in Crypto Fund Administration, Audit, and Accounting
Mike Quinn
CEO, Triple Leo Consulting
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LEGAL NOTICE:
Copyright © 2019 Accounting Blockchain Coalition, Inc. ALL RIGHTS RESERVED.
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LEGAL DISCLAIMER:
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SPEAKERS
Chen FangABC Charter Member, Co-Founder and CEO of Lumina
Chen is Lumina’s co-founder and CEO, where he is responsible for all facets of the
company’s product development, strategic vision, and business growth. He has over a
decade of diversified experience in fintech and the traditional technology sector,
managing and growing product organizations at Zenefits and Microsoft.
Mike QuinnFounder and CEO of Triple Leo Consulting
Mike founded Triple Leo Consulting, a full-service fund administration and operational
consulting firm focused on the alternative investment industry (including crypto asset
funds) in 2017.
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AGENDA
1. About Us
2. Overview of TX to NAV
3. Data Ingestion & Reconciliation
4. Bookkeeping & Administration
5. Applications to Audit & Accounting
6. Q&A Session
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ABOUT US
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LUMINA
Lumina is the most comprehensive crypto-native
financial operating system. Lumina offers portfolio
management, accounting & tax, and order &
execution management software for investment funds,
enterprises, and professional services firms.
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TRIPLE LEO CONSULTING
Triple Leo is an industry-leading fund administrator in the
cryptoasset space, servicing over 75 funds in total with
over 60 funds in cryptoassets. Triple Leo developed
proprietary technology in the summer of 2017 to assist
servicing the cryptoasset fund community.
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OVERVIEW OF TX TO NAV
TX LP
NAV
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DATA INGESTION & RECONCILIATION
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BUILDING BLOCKS
Supported Venues
Financial Products
Transaction Types
Pricing Data
Reference Data
Security Master
General Ledger
Chart of Accounts.. a great product
Discrepancy Resolution
Auto-Reconciliation
Manual Reconciliation
Tax Lot Computation
API Output
Reporting
Integrations
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BUILDING BLOCKS
Supported Venues
Financial Products
Transaction Types
Pricing Data
Reference Data
Security Master
General Ledger
Chart of Accounts.. a great product
Discrepancy Resolution
Auto-Reconciliation
Manual Reconciliation
Tax Lot Computation
API Output
Reporting
Integrations
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SUPPORTED VENUES
Trading
Custody
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FINANCIAL PRODUCTS
Liquid Assets
Illiquid Assets
Futures
Options
Swaps
Loans
Staked Positions
Baskets
Indices
Startups
VC Funds
Hedge Funds
ETFs
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TRANSACTION TYPES
Buy
Sell
Transfer
Transfer In
Transfer Out
Paid
Earned
Airdrop
Deposit
Withdrawal
Fork
Mined
Receive Gift
Send Gift
Theft
Lost
Symbol Change
Blockchain Migration
Borrow
Lend
Open Position
Close Position
Stake
Unstake
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INTERESTING QUESTIONS
“We placed a number of limit margin shorts with 10X leverage of a perpetual
swap contract. In the last week, how many of these contracts were filled? How
many were closed? What’s my current realized and unrealized gains? How much
did I earn or pay due to funding fees? How much did I pay in exchange fees?”
“What is my total staking income for the last month? How much in USD do I
currently have staked? How much in USD is currently unstaking?”
“What percentage of my portfolio is in illiquid holdings? Over the last quarter, of
the total net new subscriptions, what % went into illiquid holdings?”
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AUTO-RECONCILIATION
Positions Data
Reference DataPricing Data
TX
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BOOKKEEPING & ADMINISTRATION
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THE FUND ADMINISTRATOR’S ROLE
● Challenges: Obtaining usable data
● Using Lumina as a conduit to obtain the data Triple Leo needs to facilitate our functions
as the Fund Admin
● Daily Work: Booking trades, booking fund activity and perform daily cash and holdings
reconciliation
● Month-end Work: Calculation of management fee, month-end allocations, calculation
of incentive fee, providing month-end package to the investment manager and release
of investor statements
● Year-end Work: Creating and assembling the year-end audited financial statements,
providing workpapers and working closely with the fund’s auditors and tax preparers
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THE FUND ADMINISTRATOR’S ROLE (continued)
● Clear lines of communication
● Operational consultant
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APPLICATIONS TO AUDIT & ACCOUNTING
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GP / CIO / CFORequests reports
Tracks
performance
Analyzes signals
Derives strategies
Executes trades
Administrator
Pulls data
Reconciles transactions
Cuts NAVs
Sends reports
LP / Owners Receives NAVs
Tracks
performance
Understands trends
Auditor
Requests reports
Audits transactions
Verifies balances
Accountant
Requests reports
Files taxes
Fund / Enterprise
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AN ADMIN’S VIEWS ON AUDITOR PAIN POINTS
● Lack of knowledge base in crypto
● Lack of GAAP guidance
● Obtaining data in a usable format
○ Lumina can add tremendous value for auditors
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SETTING AUDITORS UP FOR SUCCESS
Finalized Reports
Reconciled Transactions
Structured Line Items
Raw API Response
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SETTING ACCOUNTANTS UP FOR SUCCESS
Lots Management
Auto-Gen Forms
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Q&A
Chen Fang
https://www.lumina.app
Mike Quinn
https://www.tripleleo.com
