TruFi Fund – Peoples Reserve

1. What Is the TruFi Fund

The TruFi Fund is a real estate structured credit fund that acts as the exclusive LP (Liquidity Provider) for Peoples Reserve. It supplies the capital behind Peoples Reserve Bitcoin and Gold Powered Mortgages, then packages those loans into tokenized, sound-money-backed credit instruments called CSMOs (Collateralized Sound Money Obligations).

The fund is offered only to verified accredited investors under Rule 506(c) of Regulation D.

2. Key Fund Metrics

Metric	Specification
Target `IRR` (Internal Rate of Return)	`35%+` (target, not guaranteed)
Preferred Return (Pref Return)	`10%`
Minimum Investment	`$500,000`
Lock-Up Period	`36 months`

3. Why the Fund Exists

The traditional MBS (Mortgage-Backed Securities) market is built on debt collateralized by real estate alone. TruFi introduces sound-money collateral into that model.

The fund is built on three ideas:

Dual collateralization: Each loan is a seller-financing installment contract-for-deed secured by both the property title and either Bitcoin or tokenized gold or silver.
Securitization: BPMs (Bitcoin Powered Mortgages) and GPMs (Gold Powered Mortgages) are pooled into CSMOs, structured as a lower-risk cash-flow instrument targeting roughly 6% APY.
Tokenized transparency: CSMOs are verified on-chain 24/7/365. A public dashboard provides real-time audits and valuations, which is intended to avoid traditional mark-to-market pricing gaps.

4. How It Works

The fund follows a five-step flow from loan origination to investor returns:

Exclusive partnership: TruFi is the sole liquidity provider for Peoples Reserve Bitcoin and Gold Powered Mortgages.
Originating loans: Deal flow is driven through the Peoples Reserve platform and its audience.
Securitizing: BPMs and GPMs are packaged into CSMOs.
Servicing loans: Peoples Reserve services the loans through its platform and servicing team.
Value capture: CSMOs are sold at NPV (Net Present Value) premiums, with net returns distributed to investors after fees.

5. Fund Terms

Term	Specification
Type of Fund	Real Estate Structured Credit Fund
Lock-Up Period	`36 months`
Hurdle Rate	`10%` Preferred Return
Carried Interest	`50/50` split above the hurdle
Distributions	Semiannual
Early Redemption Fee	`5%`
Early Redemption Limit	`5%` of total fund `NAV` (Net Asset Value) per quarter

6. Illustrative Return Projections

CSMO value is sensitive to the marketplace discount rate. As the discount rate falls, CSMO price rises in a nonlinear way, which is the primary driver of the fund's upside.

Example: A $25M CSMO pooled at a 30-year term and 6% APY. If UST (U.S. Treasuries) fall to 4%, the CSMO value rises to roughly $32.45M. If UST fall to 2%, it rises to roughly $44.2M.

The table below shows illustrative outcomes across discount rates on a $50M basis. The row marked with an asterisk reflects the current marketplace discount rate of 4.8%.

Discount Rate	CSMO Market Price	Gross Profit Per CSMO	Annual Gross Profit	Gross Return on $50M	APY After 2% AUM Fee	APY After Split
`4.8%` *	`$29.1M`	`$4.1M`	`$16.4M`	`33%`	`31%`	`20%`
`4.0%`	`$32.45M`	`$7.45M`	`$29.8M`	`60%`	`58%`	`34%`
`3.5%`	`$35.1M`	`$10.1M`	`$40.4M`	`81%`	`79%`	`44%`
`3.0%`	`$37.65M`	`$12.65M`	`$50.6M`	`101%`	`99%`	`55%`
`2.5%`	`$40.8M`	`$15.8M`	`$63.2M`	`126%`	`124%`	`67%`
`2.0%`	`$44.2M`	`$19.2M`	`$76.8M`	`154%`	`152%`	`81%`

7. Who Can Invest

The TruFi Fund is available only to verified accredited investors, with a minimum investment of $500,000.

In general, you may qualify as an accredited investor if you meet one of the following:

Individual net worth over $1M, excluding your primary residence.
Annual income over $200,000 (or $300,000 jointly) in each of the last two years.
An entity with over $5M in assets.

8. Glossary of Terms

LP (Liquidity Provider): The party that supplies capital to fund the mortgages.
CSMO (Collateralized Sound Money Obligation): A securitized pool of Bitcoin and gold backed mortgages.
BPM (Bitcoin Powered Mortgage): A mortgage collateralized by property title plus Bitcoin.
GPM (Gold Powered Mortgage): A mortgage collateralized by property title plus tokenized gold or silver.
MBS (Mortgage-Backed Securities): Securities backed by a pool of mortgage loans.
IRR (Internal Rate of Return): The annualized rate of return on an investment over time.
APY (Annual Percentage Yield): The yearly rate of return, including compounding.
NPV (Net Present Value): The present-day value of future cash flows.
LTV (Loan-to-Value): The ratio of loan size to collateral value.
NAV (Net Asset Value): The total value of the fund's assets minus liabilities.

9. Frequently Asked Questions

What is the minimum investment?
The minimum investment is $500,000, and all investors must be verified accredited investors.

How does dual-collateralization work?
Each mortgage is secured by both the real estate title and Bitcoin or gold holdings. In a default, the fund has multiple recovery options rather than relying on a single asset.

What happens if Bitcoin drops 50%?
Loans are structured at a 50% LTV, which provides a buffer against price declines. The fund also holds the full real estate title as additional security.

Who qualifies as an accredited investor?
Generally, an individual with net worth over $1M (excluding primary residence) or income over $200,000 per year, or an entity with over $5M in assets. Status must be verified.

How are returns distributed?
Net returns are distributed semiannually. Profits above the 10% Preferred Return are split 50/50 between investors and the fund.

Can I redeem early?
The fund has a 36 month lock-up. Early redemptions carry a 5% fee and are capped at 5% of total fund NAV per quarter.

Are returns guaranteed?
No. All return figures, including Target IRR and projected APY, are targets or illustrative scenarios. They are not guaranteed, and you may lose your entire investment.

How is TruFi related to Peoples Reserve?
TruFi is the exclusive LP for Peoples Reserve. Peoples Reserve originates and services the Bitcoin and Gold Powered Mortgages, while TruFi supplies the capital and securitizes the loans.

Is the offering regulated?
The offering is conducted under Rule 506(c) of Regulation D, with a Form D filed with the SEC.

10. Important Disclosures

Please read carefully.

An investment in the TruFi Fund involves a high degree of risk, including the possible loss of your entire investment. The securities are illiquid and not publicly traded.

This article is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Offers are made only through official offering documents, including a Private Placement Memorandum (PPM) and Subscription Agreement.

The securities have not been registered under the U.S. Securities Act of 1933 and are offered under the exemption in Rule 506(c) of Regulation D. Sales are limited to verified accredited investors. No federal or state securities commission has approved or disapproved these securities or passed upon the accuracy of this article. Any representation to the contrary is a criminal offense.

This article contains forward-looking statements. Actual results may differ materially from any projections, and all return figures are targets or illustrative scenarios rather than guarantees. Prospective investors should consult their own legal, tax, and financial advisors before making any investment decision. Form D will be filed with the SEC within 15 days of the first sale, and the offering is subject to bad-actor disqualifications.

11. Next Steps

Bitcoin Mortgages: How Peoples Reserve Bitcoin Powered Mortgages work.
Bitcoin Bonds: The fixed-income side of the Peoples Reserve product line.
Self Repaying Mortgages: How mortgage balances are reduced over time.