Investment Conditions

Funds will be invested in vehicles that comply with the following conditions:

• Shariah-compliant as agreed upon by Takadao’s internal shariah board and at least one external shariah advisory company such as Marhaba Defi, Crypto Halal, Shariah Review Bureau or Amanie Advisors or other reputable organization adhering to AAOIFI standards.

• If invested in on-chain digital assets, the tokens must underpin a real project. No meme coins.

• If invested in DeFi protocols, the protocols must be publicly trackable and not on any blacklist or sanctions list.

• If placed with a third party asset manager, the asset manager should be licensed and have a track record of investing for at least the two prior years.

• The liquidity of the investment vehicle should match the requirements of the fund’s cashflow.

The monies of the fund are allocated across several pools with different investment conditions, as described below. Monies are allocated according to cashflow needs.

For example, amounts that are expected to be spent in the next 90 days (0-3 months) will not be invested and will be held in cash. Future cashflow needs, amounts that will be spent within 3-6 months will be invested in the “Now” pool.

Pool	Consists of	Conditions of Investment
Now	3-6 month cashflow needs	Risk: Low, with no expected fluctuation in capital Lock-up period: 24 hours Liquidity: Within 24 hours Examples: On-chain DeFi protocols
Soon	6+ months cashflow needs	Risk: Moderate, with minimal fluctuation in capital (+/- 10%) within investment period Lock-up period: Max 3 months Liquidity: 1 week max Examples: RWAs, tokenized ETFs, short-term managed funds
Later	12+ months cashflow needs	Risk: High, with significant fluctuation in capital (+/- 20%) within investment period Lock-up period: Max 12 months Liquidity: 3 weeks max Examples: Blue Chip crypto, alt coins, long-term managed funds