Hedging and Asset Management Policy

Entered into force on February 21, 2026.

On-chain voting result: association.dao.eth/transaction-hash

1. General Provisions and Purpose

1.1. Subject: This Hedging and Asset Management Policy (hereinafter the “Policy”) establishes rules, limits, and procedures for managing assets under the control of the New Epoch Association’s smart contracts (hereinafter the “Association Assets”).

1.2. Purpose: The primary purpose is the preservation of the Association’s capital and the minimization of volatility risk to ensure the Association’s long-term obligations for Grant payments and Mission financing, as well as to enhance transparency for the community.

1.3. Applicable Law: This Policy is governed by substantive Swiss law. Lex Cryptographica (protocol code) applies subsidiarily.

2. Asset Management Principles

2.1. Capital Preservation Priority: The main principle of Asset management is capital preservation over speculative profit.

2.2. Liquidity: The Association is obliged to maintain sufficient liquidity to cover current and forecasted operating expenses and Grant payments.

2.3. Transparency: All Asset management actions, including hedging decisions and transfers, must be initiated or approved via the Association’s on-chain voting.

3. Strategies and Limits

3.1. Asset Segmentation: The Association’s Assets are divided into two main portfolios:

3.1.1. Operational Portfolio (OP): Funds required to cover expenses over the next 12 months (grants, compensations, operating expenses).

3.1.2. Strategic Portfolio (SP): Long-term reserves to finance the Mission.

3.2. Stablecoin Limit: At least 70% of the Operational Portfolio must be denominated in stablecoins pegged to the primary Grant currency (e.g., USD equivalents) to minimize volatility risk.

3.3. Hedging Limit: Hedging decisions are made exclusively for the Operational Portfolio to protect against exchange rate risks in the payment of approved Grants denominated in fiat currencies. Use of high-risk derivatives is prohibited.

4. Execution Procedures

4.1. Transaction Initiation: Any Asset management action (purchase/sale of stablecoins, hedging) must be initiated by the Authorized Representative appointed for financial provision in accordance with their Executive Act.

4.2. Approval Requirement: All transactions exceeding the threshold of 1,000 USD require Voting with Qualified Confirmation, performed according to provisions established in the Governance Resolution.

4.3. Reporting: The Authorized Representative appointed for financial provision is obliged to publish a quarterly Asset report including current Portfolio composition, hedging results, and compliance with this Policy.

5. Entry into Force and Amendments

5.1. Entry into Force: This Policy enters into force simultaneously with the effective date and time of the Governance Resolution.

5.2. Amendments: Any amendments to this Policy may only be made through Voting with Qualified Confirmation according to provisions established in the Governance Resolution.

5.3. Notification: Continued use of the website, software, and Association Tokens after publication of amendments constitutes user acceptance of the updated Policy.