# Important terms

**Fund** — Nexus Ventures, an early-stage venture capital fund focused on crypto infrastructure, protocols, and tokenized assets.

**Limited Partner (LP)** — An investor who commits capital to the Fund and is entitled to returns subject to the Fund’s terms, fees, and carry.

**General Partner (GP)** — The managing entity responsible for investment decisions, portfolio management, and fund operations.

**Commitment** — The total capital amount an LP agrees to invest in the Fund.

**Capital Call** — A request by the GP for a portion of the LP’s committed capital to be transferred for investments or expenses.

**Management Fee** — An annual fee (typically 2%) charged by the GP on committed or invested capital to cover operational costs.

**Carry (Carried Interest)** — The percentage (usually 20%) of the Fund’s profits that the GP is entitled to after returning capital and preferred returns to LPs.

**Investment Period** — The timeframe (usually first 3–5 years) during which the Fund actively deploys capital into portfolio companies.

**Fund Term (Lifecycle)** — The total duration of the Fund (typically 7–10 years), including investment, management, and exit phases.

**Liquidity Event** — An occurrence (e.g., token generation event, secondary sale, acquisition, or IPO) that allows realization of returns on an investment.

**Token Generation Event (TGE)** — The process of creating and distributing tokens to investors, users, or stakeholders.

**Secondary Sale** — The sale of tokens or equity by early investors or employees on a secondary market prior to a formal exit.

**Vesting** — The scheduled release of tokens or equity to founders, employees, or investors over time.

**Regulatory Compliance** — Adherence to applicable laws and regulations, including KYC/AML requirements.

**Preferred Return (Hurdle Rate)** — The minimum return threshold that must be met before carry is paid to the GP.


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