Frequently Asked Questions (FAQ)
This article answers common questions about the Peoples Reserve Bitcoin Bond, including maturity, principal protection, and regulatory requirements. Reviewing this information can help you understand how this structured Principal-Protected Note fits your investment strategy.
Table of Contents
- What is a Peoples Reserve Bitcoin Bond?
- What does “100% Principal Protection” mean?
- How to purchase Bitcoin Bonds?
- Where can I see my Bitcoin Bond status?
- Do Bitcoin Bonds pay regular interest?
- Can I exit a Bitcoin Bond before maturity or sell my bond?
- Can I access liquidity (borrow against the bond) without selling?
- What happens if the Bitcoin price drops significantly?
- Who is eligible to invest in Bitcoin Bonds?
- What is the minimum investment required?
- How is the Bitcoin stored?
- What happens at maturity?
What is a Peoples Reserve Bitcoin Bond?
A Bitcoin Bond is a strategically structured Principal-Protected Note and serves as our flagship Vault product. It combines the safety of U.S. Treasuries with the high-growth potential of Bitcoin. It is designed to offer 100% downside protection while allowing you to capture the unlimited upside of the Bitcoin market.
What does “100% Principal Protection” mean?
It means your initial investment (the principal) is fully backed by U.S. Treasury notes. Even if the price of Bitcoin were to drop significantly, your original capital remains safe and secure within the Treasury-backed structure.
How to purchase Bitcoin Bonds?
To purchase a Bitcoin Bond, log in to your Peoples Reserve account and navigate to the Vault tab. Select Bitcoin Bonds from the menu, choose your desired bond duration (5 or 10 years), and enter the amount you wish to invest.
For a more detailed guide, please refer to the Bitcoin Bonds Scribe guide.
Where can I see my Bitcoin Bond status?
You can track your Bitcoin Bond's performance and details directly from your Vault Dashboard. The Vault page provides a real-time view of:
- Bond duration
- Current Bitcoin exposure value
- Maturity date
- Accrued semiannual distributions
Do Bitcoin Bonds pay regular interest?
Yes. The Bitcoin Bond allows you to receive semiannual distributions, creating a reliable income stream throughout the duration of the bond.
Can I exit a Bitcoin Bond before maturity or sell my bond?
Bitcoin Bonds are designed to be held until maturity. If you anticipate needing to sell the bond before the maturation date, you should not purchase it.
Selling: The bond is offered as a private placement Reg D 506(c). It is a restricted security for the first year. After the first year, it is classified as unrestricted, but any transfer of ownership must be registered with the SEC.
Can I access liquidity (borrow against the bond) without selling?
Absolutely. You can borrow 100% of the par value of U.S. Treasuries (UST) allocation against your Bitcoin Bond position at rates as low as 8% APR. This allows you to maintain your upside exposure and principal protection while unlocking purchasing power for any purpose.
What happens if the Bitcoin price drops significantly?
Nothing happens to your original principal. While your Bitcoin gains may be reduced depending on market performance, your principal value is backed by the U.S. Treasury note.
Scenario: Your worst-case scenario is receiving 100% of your principal back; your best case is unlimited Bitcoin upside.
Who is eligible to invest in Bitcoin Bonds?
The Bitcoin Bond is available to individuals, businesses, and governments. Because the note is offered as a private placement exempted under Reg D 506(c), investors must be qualified or accredited to participate.
What is the minimum investment required?
The minimum investment for a Bitcoin Bond is $100.
How is the Bitcoin stored?
Bitcoin exposure is managed using institutional-grade custody practices, featuring:
- Segregated allocation tracking
- Secure storage solutions
Users do not need to manage private keys themselves.
What happens at maturity?
At maturity:
- Your Treasury allocation matures back to your original principal
- Any gains from the Bitcoin allocation are added
- Your total payout is credited to your account
- An exit fee is deducted from the final payout*
After maturity, you may withdraw the funds, reinvest, or move them into other Peoples Reserve products.
*Note: The exit fee is waived at the Diamond level.