As per the whitepaper, the Hyperion Fund will display an official Accounting NAV which is made up of the following components:
- Liquidity Pool: This is comprised of liquid assets typically in the form of BTC, ETH, USDT or any other form of currency used to make investments into upcoming projects. These assets will have a live price, and fluctuating market value.
- Listed investments: This is made up of all the assets the Hyperion Fund has received through investing in various projects. These assets will be listed on an exchange and therefore have a live fluctuating price and market value.
- Unlisted Investments: This portion of the fund is comprised of investments that the Hyperion Fund has made, but that have not yet listed on an exchange. The value of these investments will therefore be carried at cost, which is the USD amount that Hyperion has invested in each project. When each investment lists on an exchange and a market value can be determined, they will be moved into the Listed Investments section of the NAV.
In addition to the Accounting NAV, fund managers will display 3 'Directors Estimates', which are different scenarios that aim to predict what the IHF NAV will be once its unlisted investments list on exchanges. In the Accounting NAV, unlisted investments are valued at cost. This value does not take into account the commercial terms Hyperion has negotiated such as discounts, bonuses, and percentage of raise, which can significantly increase the value of these unlisted investments. The Directors Estimates, therefore, provide a more realistic appraisal of the Hyperion Fund's NAV. The scenarios will provide a NAV that assumes the investments list at varying prices from their public sale offering price. Where a percentage of raise was negotiated, an amount of funds raised by the project will also be incorporated.