> For the complete documentation index, see [llms.txt](https://docs.tesseract.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.tesseract.fi/earn-direct-and-earn-api/working-with-reports/dcv-understanding-your-reports.md). # Understanding Your Reports Tesseract Investment Oy issues two monthly reports to clients of the Earn Direct service: a **Periodic Portfolio Statement** and a **Custody Statement**. Both are provided in electronic format and are available to download and print from the platform. This page explains what each report contains, what the figures represent, and how key calculations work. *** ### The Two Reports at a Glance | | Periodic Portfolio Statement | Custody Statement | | ------------- | ---------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------- | | **Purpose** | Performance and activity review under the portfolio management mandate (MiCA Article 81) | Confirmation of assets held and transferred under the custody mandate (MiCA Article 75) | | **Issued by** | Tesseract Investment Oy (portfolio manager) | Tesseract Investment Oy (custodian) | | **Frequency** | Monthly (minimum quarterly under MiCA) | Monthly (minimum quarterly under MiCA) | | **Key data** | Holdings, interest earned, deposits/withdrawals, fees | Assets in custody, assets deployed, transfers in and out | The two reports are complementary. The Portfolio Statement focuses on performance and yield; the Custody Statement focuses on where assets are held and how they moved. *** ## Periodic Portfolio Statement ### Header Each statement is identified by: * **Client Name** and **Client ID** — your organisation name and unique identifier on the Tesseract platform * **Reporting period** — the calendar month covered (e.g. 1.5.2026–31.5.2026) * **Service provider** — Tesseract Investment Oy ### Portfolio Valuation & Performance This table is the core of the statement. It shows, for each asset in your portfolio, how much you held at the start and end of the period, what it was worth in euros, and how the value changed. | Column | What it represents | | ------------------------- | ----------------------------------------------------------------------------------------------------------------- | | **List of assets** | The product and asset (e.g. USDC Lending) | | **Quantity held (start)** | Number of units held at the opening of the period | | **Cash value (start)** | Always shown as 0 — Tesseract does not hold or return fiat currency; all assets are received and returned in-kind | | **Market Value (start)** | Euro value of the opening position, calculated using CoinMarketCap market rates | | **Quantity held (end)** | Number of units held at the close of the period, after all interest has accrued | | **Cash value (end)** | Always shown as 0 — same as above | | **Market Value (end)** | Euro value of the closing position | | **Change** | Difference in euro market value between start and end | | **Performance** | Percentage change: (End Market Value − Start Market Value) / Start Market Value | > **Market value note.** All valuations use the previous day's market rates sourced from CoinMarketCap. Because crypto-asset prices fluctuate, the euro value of your position can change even if no interest has been earned or no transactions have occurred. **Example — Portfolio Valuation** Suppose a client holds USDC in the Lending product at a 7% gross annual rate: | | Start of period (1 May) | End of period (31 May) | | ------------- | ----------------------- | ---------------------- | | Quantity held | 100,000.000000 USDC | 100,594.521918 USDC | | Market value | €94,500.00 | €95,062.82 | | Change | | +€562.82 | | Performance | | +0.60% | The quantity increase of 594.52 USDC represents interest earned over 31 days at 7% per annum (calculated as 100,000 × 7% ÷ 365 × 31 = \~594.52 USDC). The euro value change reflects both the interest accrued and any movement in the USDC/EUR exchange rate. **A note on performance percentages** Where a position begins the period at a very small quantity (or near-zero market value), the percentage change can appear extremely large. This is a mathematical consequence of the percentage formula — a move from €0.001 to €5 in market value is technically a very high percentage gain, but reflects a small absolute amount. Always read the **Change** column (absolute euros) alongside the **Performance** column (percentage). *** ### Transactions Summary This table lists every transaction recorded in your portfolio during the period, one row per event per asset per day. | Column | What it represents | | --------------------------- | ---------------------------------------------------------------------- | | **Date** | Calendar date of the transaction | | **Type** | Nature of the transaction: `Interest Earned`, `Deposit`, or `Withdraw` | | **Asset** | The crypto-asset involved | | **Quantity** | Amount of the asset transacted | | **Price per unit** | Euro market price of one unit of the asset on that date | | **Total transaction value** | Quantity × Price per unit, rounded to the nearest euro | **Transaction types** `Interest Earned` — recorded daily for every asset in which you have a position. Interest accrues continuously and is credited to your account each day. The quantity credited is small on a daily basis; over a full month it accumulates to the total reflected in the Portfolio Valuation table. `Deposit` — a transfer of assets into your account by you or on your behalf. `Withdraw` — a transfer of assets out of your account to your designated wallet. **Why do daily interest entries show €0 in total transaction value?** Interest accrues on very small quantities each day. At current market prices, the daily interest on a modest position often rounds to less than €1, so the total transaction value column displays €0. The actual quantity credited (shown in the Quantity column) is precise and accumulates meaningfully over the month. **Example — Interest calculation for USDC** A client deposits 100,000 USDC. The applicable gross annual rate is 7%. | Calculation | Value | | --------------------- | ----------------------------------------------------- | | Annual interest | 100,000 × 7% = 7,000 USDC | | Daily interest | 7,000 ÷ 365 = 19.178082 USDC | | Day 1 interest entry | 0.019178082 USDC (×1 unit price of €1 = \~€0 rounded) | | Month total (31 days) | 19.178082 × 31 = 594.52 USDC | Each day appears as a separate row in the Transactions Summary with the precise daily quantity. The month total is visible in the Portfolio Valuation table as the difference between opening and closing quantity. **Example — Deposit and withdrawal entries** On 15 May, a client deposits 5,000 USDC and on 22 May withdraws 2,000 USDC: | Date | Type | Asset | Quantity | Price per unit | Total value | | ---------- | -------- | ----- | ---------- | -------------- | ----------- | | 15/05/2026 | Deposit | USDC | 5,000 USDC | €1 | €5,000 | | 22/05/2026 | Withdraw | USDC | 2,000 USDC | €1 | €2,000 | Both entries appear in the Transactions Summary. The net effect (+3,000 USDC) is reflected in the closing quantity in the Portfolio Valuation table, in addition to any interest accrued. *** ### Suitability Assessment Update This section confirms the date of the most recent suitability assessment conducted by Tesseract Investment Oy under MiCA Article 81, and the basis on which it was last updated (for example, if the client provided new information or Tesseract updated its assessment criteria). Where no update occurred during the period, the section notes that no new suitability assessment data is available. This does not indicate any issue with the mandate — it simply means the existing assessment remained current for the period. *** ### Costs & Charges This section provides a full ex-post disclosure of all fees and charges applicable to the reporting period. | Fee type | Description | | ------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------- | | **Setup fee** | None — no one-time setup fee is charged | | **Entry and exit fees** | None — no fees on deposits into or withdrawals from the portfolio | | **Management fee** | Charged as a percentage of assets under management per annum | | **Performance fee** | 30% of net profits, subject to a high-water mark; calculated and charged daily in arrears | | **Transaction fees and costs** | Third-party execution costs deducted directly from the portfolio upon execution; Tesseract does not charge commission on trade execution | | **Inducements** | Any inducement received by Tesseract in connection with the portfolio management mandate is transferred in full to the client and reported here | All fees are deducted from the portfolio in crypto-assets, not in fiat currency. **Performance fee and high-water mark — how it works** The performance fee is 30% of net profits, calculated daily. The high-water mark means the performance fee is only charged on gains that exceed the portfolio's previous peak value. If the portfolio declines in a period, no performance fee is charged, and the fee only resumes once the portfolio has recovered to its prior peak and continued to grow beyond it. **Example — Performance fee calculation** | | Value | | ------------------------------------ | --------------- | | Opening portfolio value | 100,000 USDC | | Closing portfolio value (before fee) | 100,594.52 USDC | | Net profit | 594.52 USDC | | Performance fee (30%) | 178.36 USDC | | Closing portfolio value (after fee) | 100,416.16 USDC | | New high-water mark | 100,416.16 USDC | If in the following month the portfolio value falls to 100,200 USDC, no performance fee is charged for that period. The fee only applies again once the portfolio exceeds 100,416.16 USDC. *** ## Custody Statement ### Header Each statement is identified by: * **Client Name** and **Client ID** — matching the Portfolio Statement * **Reporting period** — the calendar month covered * **Custodian** — Tesseract Investment Oy ### Crypto Assets in Custody This table shows the state of each asset at the end of the reporting period, from a custody perspective. | Column | What it represents | | --------------------- | ------------------------------------------------------------------------------------------ | | **List of assets** | The product and asset (e.g. USDC Lending) | | **Amount in custody** | Units held idle in the custody account, not yet deployed | | **Amount deployed** | Units actively deployed to the lending portfolio on the client's behalf | | **Total value** | Euro market value of the total position (in custody + deployed), using CoinMarketCap rates | **Amount in custody vs Amount deployed** When a client deposits assets, they pass through the custody account before being deployed. Once deployed, the balance moves from *Amount in custody* to *Amount deployed*. In normal operation — where assets are fully deployed — the *Amount in custody* will show 0 and the full balance appears under *Amount deployed*. **TBC : Negative values in *****Amount deployed***** can appear due to rounding or timing differences between interest accrual and the daily accounting cycle. These are not errors and do not represent a loss of assets.** **Example — Custody table** | Asset | Amount in custody | Amount deployed | Total value | | ------------ | ----------------- | --------------- | --------------- | | USDC Lending | 0 | 100,416.16 USDC | €95,018.29 | | ETH Lending | 0 | 2.50000000 ETH | €4,625.00 | | BTC Lending | 0 | 0.05000000 BTC | €3,301.50 | | **Total** | | | **€102,944.79** | All assets have been fully deployed to the lending portfolio. No assets are held idle in custody. > **Segregation confirmation.** The Custody Statement explicitly confirms that client assets have been legally and operationally segregated from Tesseract's own assets. This confirmation appears in the Additional Information section of every statement. *** ### Activity and Transfers This table records every movement of assets during the period — into and out of the custody account and between custody and deployment. | Transaction type | What it means | | ---------------------- | ---------------------------------------------------------------------------------------- | | **User deposit** | Assets received from the client's wallet into the Tesseract custody account | | **Sent to deployment** | Assets moved from the custody account to the lending deployment | | **Sent to custody** | Assets returned from deployment back to the custody account (e.g. ahead of a withdrawal) | | **Withdraw to user** | Assets sent from the custody account back to the client's wallet | **Example — Deposit flow** A client deposits 5,000 USDC on 15 May. The custody statement shows: | Date | Type | Asset | Quantity | Value | | ---------- | ------------------ | ----- | ---------- | ------ | | 15/05/2026 | User deposit | USDC | 5,000 USDC | €4,725 | | 15/05/2026 | Sent to deployment | USDC | 5,000 USDC | €4,725 | The deposit is received into custody and immediately deployed. Both entries are recorded, giving a complete chain of custody for the assets. **Example — Withdrawal flow** A client withdraws 2,000 USDC on 22 May. The custody statement shows: | Date | Type | Asset | Quantity | Value | | ---------- | ---------------- | ----- | ---------- | ------ | | 22/05/2026 | Sent to custody | USDC | 2,000 USDC | €1,892 | | 22/05/2026 | Withdraw to user | USDC | 2,000 USDC | €1,892 | Assets are recalled from deployment into custody, then transferred to the client's wallet. The sequence confirms full traceability from deployment to the client's address. *** ### How the Two Reports Relate The Portfolio Statement and Custody Statement cover the same period and the same client, but from different perspectives. | | Portfolio Statement | Custody Statement | | ----------------------------------- | ------------------------- | ----------------------------------------------------------- | | Shows interest earned | ✓ (Transactions Summary) | ✗ | | Shows euro performance | ✓ (Portfolio Valuation) | ✗ | | Shows fees charged | ✓ (Costs & Charges) | ✗ | | Shows assets in custody vs deployed | ✗ | ✓ | | Shows deposit/withdrawal flows | ✓ (as Deposit / Withdraw) | ✓ (as User deposit / Withdraw to user + internal transfers) | | Confirms asset segregation | ✗ | ✓ (Additional Information) | A deposit of 5,000 USDC on 15 May appears in the Portfolio Statement as a single `Deposit` entry, and in the Custody Statement as two entries (`User deposit` followed by `Sent to deployment`). Both records refer to the same event — the Custody Statement simply provides greater granularity on the internal movement of assets. *** > **Risks.** Discretionary portfolio management of crypto-assets involves significant risks, including smart contract risk, DeFi protocol risk, oracle risk, liquidity risk, market stress risk, counterparty risk, custody risk and regulatory change risk, and the risk of total loss of capital. Yields are indicative only, not guaranteed, and will vary. *** *This website is a marketing communication of Tesseract Investment Oy, a crypto-asset service provider authorised under Regulation (EU) 2023/1114 (MiCA) by the Finnish Financial Supervisory Authority (FIN-FSA). It is directed at institutional counterparties under a non-disclosure agreement with Tesseract. It is not an offer or solicitation.* --- # Agent Instructions This documentation is published with GitBook. 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