Fund Mechanics

Aelio is a fully autonomous, decentralized investment vehicle, entirely governed by smart contracts and powered by algorithmic intelligence.

Its structure is built to align participant incentives, apply performance-driven logic, and offer full transparency across the board.

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↝ Fund Structure

Aelio runs on a non-custodial, trustless architecture, where all rules related to capital are written directly into immutable smart contracts.

Here are the fund’s core parameters:

• 365-day lock-in period per deposit • 2% annual management fee, calculated and distributed continuously on-chain • 20% performance fee, triggered only if returns exceed an 8% annualized hurdle rate

These rules are enforced transparently at the contract level, and all performance metrics are computed algorithmically, preventing human bias or manipulation.

Aelio invests exclusively in assets native to the LetsBonk ecosystem, which allows its AI models to specialize in ecosystem-specific trends and ensures long-term strategic alignment.

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↝ Dynamic Portfolio Management

Aelio’s AI is always on. It monitors a wide range of metrics—including market conditions, volatility regimes, sentiment changes, and on-chain liquidity flows—to constantly reassess asset exposure.

The system uses an adaptive allocation engine to rebalance the portfolio. This engine is driven by a composite score that factors in:

• Expected Sharpe-adjusted returns • Sentiment weightings • Liquidity depth • Risk correlation with current holdings

Instead of following rigid strategies like a 60/40 split, Aelio applies a regime-aware, non-linear rebalancing method—one that evolves as market conditions shift.

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↝ Real-Time Rebalancing

Rebalancing is handled autonomously and in real time. Aelio’s AI constantly checks for trigger conditions, such as:

• A significant deviation from optimal asset weights • A new, high-confidence investment signal • A major market regime shift (e.g., volatility spike) • Scheduled weekly AI updates

When a rebalance is needed, the system prepares swap and liquidity management transactions, which are then executed on-chain via decentralized relayers.

This ensures fast reaction times, gas-efficient execution, and transparent operations.

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↝ Deposit Pool Logic

Users deposit funds into a smart contract-managed liquidity pool. Each deposit is tokenized, giving the depositor a share of the fund’s Net Asset Value (NAV).

From there, Aelio’s AI uses the pooled capital to:

• Select the best risk-adjusted opportunities • Distribute liquidity across diversified positions • Hedge exposures when necessary • Optimize idle capital for maximum efficiency

All of this happens under a non-custodial setup—user funds are never directly controlled by Aelio’s team, and all capital movements occur through audited smart contracts.

Withdrawals are only available after the 365-day lock-in, and are based on real-time NAV calculations, ensuring fair and accurate redemptions.

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↝ Expected Performance & Scenarios

Aelio does not offer fixed returns. Instead, it’s designed to outperform passive strategies over a full market cycle by:

• Capturing alpha in short- and mid-term opportunities • Minimizing drawdowns through active risk rebalancing • Exploiting LetsBonk-specific inefficiencies • Applying disciplined, data-driven decisions during high volatility

Simulated backtests (on historical LetsBonk asset data) suggest that Aelio could outperform basic index strategies by 15–30% annually, while offering lower volatility and better downside protection.

That said, it's important to note: past performance is not a guarantee of future results. As with all DeFi protocols, risks such as smart contract exploits and liquidity shocks remain a reality.