Kestrel Portfolios.

01Important notice

When Kestrel goes live, the then-current terms will be published on this page and will supersede this document. Material changes are versioned and dated.

02Portfolio summaries

Four portfolios, one discipline. Each summary states the objective, the strategy in brief, and the principal risks. Fees are identical across all four and are set out in section 03.

03Fees & expenses

Design targets. No fees are charged today — fee collection ships only after the pilot phase, and the then-live schedule will be published here first.

Pass-through transaction costs

Rebalancing incurs costs that are paid to markets, not to Kestrel: Solana network fees (typically fractions of a cent per transaction) and trading spread/price impact. Each rebalance leg is executed with a hard on-chain slippage limit of 0.30%; a trade that cannot fill inside that limit does not execute. Fewer, band-triggered trades are a design goal precisely to keep these costs small.

Cost example

Following the standard fund-prospectus method: assume $10,000 invested, 5% annual return, fees unchanged, full redemption at period end. Your costs would be approximately:

04Investment objectives & strategies

Universe

The portfolios invest exclusively in tokenized real-world securities: 1:1 tokenized US stocks and ETFs and tokenized short-duration US Treasuries issued via Backpack Securities, tokenized gold (GLD), and tokenized silver (SILV, issued by Dominion). All trade around the clock on Solana and settle in USD terms.

Screening

An asset may enter a portfolio only after passing every gate of a fail-closed screen: verified mint identity against the issuer's registry; live two-way tradability; round-trip trading cost within bounds; adequate depth at multiples of typical trade size; agreement between independent price sources; and standard token-program hygiene. An asset that later fails a gate is not traded on and is exited in an orderly way rather than force-sold into poor liquidity.

Target allocations

The metals sleeve allocates 60% to gold and 40% to silver. No single non-sleeve position may carry a target above 20%. Full, current holdings are always published on the Portfolios page.

Rebalancing discipline

Kestrel rebalances on drift bands, not a calendar. A position is out of band when its actual weight moves more than three percentage points from target (with a proportional floor for small positions). When any band breaks, the whole portfolio is trued up to target in one pass — sells first, then buys — subject to a per-portfolio cooldown that prevents churn in violent markets, a hard 0.30% per-leg slippage limit, and minimum trade sizes so dust is never chased.

05Principal risks

You can lose money — including all of it. The risks below are principal, not exhaustive, and several are specific to tokenized assets and on-chain operation.

06Management & operation

The portfolios are managed systematically. There is no human portfolio manager and no discretionary trading: an autonomous advisory agent applies the published rules — screen, allocate, monitor, rebalance — identically for every account, around the clock.

The custody architecture

Assets sit in a vault your wallet owns. The advisory agent holds a narrow, program-enforced authority over that vault which permits exactly one thing: swapping between approved holdings inside it.

• Rebalance-only. Both sides of every trade must be vault-owned accounts holding approved assets; trades route only through an approved venue; every trade carries an on-chain minimum-received check.
• No exit paths. The agent has no instruction that can transfer value out of your vault — to Kestrel, or to anyone.
• Bounded. Per-period traded volume is capped on-chain, limiting even a fully compromised agent to bounded trading cost, never loss of principal to theft.
• Revocable. You can pause the agent or revoke its authority at any time; your withdrawal rights are never affected by its state.

Program governance

Portfolio definitions and the approved-asset list are versioned and append-only; your vault adopts a new version only with your signature. Before any real-funds pilot, the program's invariants undergo external security review, the program upgrade authority moves behind a multisig with a timelock, and pilot accounts run under conservative per-account caps.

07Purchasing & redeeming

Because the system is non-custodial there is no "account closure" — revoking the agent's authority and withdrawing your assets ends the relationship entirely, on your signature alone.

08Performance

The portfolios have no performance history. Kestrel presents no backtests as expected returns, and the interactive simulations on this site are illustrations of the rebalancing mechanic under stylized market paths — they are not predictions and not evidence of future results.

Once live, per-portfolio performance will be published from the on-chain record itself — every rebalance is a public transaction — alongside the costs actually paid. Until that record exists, no return figure associated with Kestrel should be treated as anything but illustration.

09Distributions & taxes

The portfolios make no distributions. Dividends and corporate actions on the underlying securities are handled at the token level by the respective issuer per its published mechanics; where an issuer reflects value through the token price or token rebates, that value accrues inside your vault.

You are solely responsible for your tax obligations. On-chain activity — deposits, every rebalance trade, withdrawals — is publicly recorded and exportable, which typically simplifies reporting relative to opaque account statements. Kestrel does not provide tax advice; consult your own adviser.

10Additional information

Status. Kestrel is in development. This illustrative prospectus, the methodology whitepaper, and the published holdings together describe the intended product. Where they conflict, the most recently dated document controls.

Not registered. No Kestrel portfolio is registered under the Investment Company Act of 1940 or qualified under any securities law, and this document has not been reviewed by any regulator. It is informational only.

Definitions. Drift band — the tolerance around a target weight beyond which rebalancing triggers. Ballast — the defensive sleeve (Treasuries/cash, metals) that cushions equity drawdowns. Non-custodial — assets remain in accounts your keys control at all times. Keeper — the off-chain service that monitors drift and submits rebalance transactions under the program's constraints.

Contact. Questions about this document: kestrelinvest.xyz/contact · info@kestrelinvest.xyz.