# Proceeds from Tornado Fund

# Should Tornado Fund members expect to receive any profit by contributing to Tornado DAO?

Investments contemplated by Tornado Fund are inherently speculative and are made by Tornado DAO members or their express designees and agents. The results of Tornado Fund's investments will likely vary from period to period, and investments made by Tornado Fund will involve a high degree of financial and market risk that can result in a complete loss of any member's contribution to Tornado Fund. INVESTMENTS MAY NOT RESULT IN THE RETURN OF ANY TOKENS AS TORNADO CASH CURRENTLY DOES NOT HAVE A NATIVE TOKEN AND MAY NOT RELEASE A TOKEN WITH VERSION 3 OF THE TORNADO CASH PROTOCOL.

# If I'm a member of Tornado Fund, what interest do I receive in any projects that receive financing from Tornado Fund?

Tornado Fund will be the record holder of all securities and/or any other rights secured via Tornado Fund-related investments. Members, acting via a majority vote, will have the right to determine the amount, timing, and form of all distributions related to proceeds from those investments.

# How will proceeds be distributed?

Members will receive proceeds, if any, on a pro-rata basis based on the number of Tornado Fund Units each member holds.

If a member rage quits, the member will be entitled to receive proceeds from any investments made by Tornado Fund prior to the member's withdrawal of capital to the extent permitted by law or the terms of an investment (e.g., if Tornado Fund makes an investment in securities with transfer restrictions, Tornado Fund itself will be the record holder until those restrictions lift). However, the member will not be entitled to distribution with respect to any investments made by Tornado Fund after the date the member quits Tornado Fund.

Please note, that prior to proceed distribution, members must provide a copy of the applicable Form W-9 or Form W-8, when requested by the service provider.

# Will proceeds be paid in Ether, Dai, or cash?

Members have the right to determine how proceeds will be paid.

# Can Tornado Fund recycle or reinvest proceeds?

Members acting by a majority vote may reinvest or retain for investment any proceeds to effect Tornado Fund investments, pay expenses (outlined here or otherwise provided for in Tornado Fund's Operating Agreement), or create reserves.

# If a member votes against a proposed deal, but does not “rage quit,” will he or she still benefit from possible future profits?

Yes, the member would benefit from the future profits even if the member voted against the investment.  In effect, you're agreeing to the will of the voting members and if you don't like the decision you have the right to rage quit all or part of your undeployed Ether.

Last updated: 7/1/2020, 3:22:57 PM