# Definition

The Investment Unit or IU of a Fund will consist of a list of tokens and the amount of each token and will be the unit of measure for making deposits and withdrawals in a Fund.

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The LP will be a token specific to each Fund. It will be minted upon receipt of new deposits and burned upon withdrawal from the Fund. The Investment Unit is the logical representation of the unit of value of a Fund, and the LP is its actual representation. LP amounts will be minted and burned proportional to the amounts of Investment Units being deposited or withdrawn respectively.

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For example, an Investment Unit could be equal to:

<br>

* 100 of Token A
* 4 of Token B
* 1 of Token C

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Fractional amounts may not be deposited or withdrawn from this Investment Unit because it is possible that some token forming the IU may not be divisible in the same way. In the above example, Token C may not be divisible in any way with an integer result.&#x20;

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The UI will ideally have a value in ADA so small that instead of thinking about fractioning it we will very often be handling its quantities by thousands or millions.

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To facilitate the operation with the amounts of UI deposited and withdrawn and the LP minted or burned, there will be the uLP token so that 1 LP will be equivalent to 1,000,000 uLP. The LP unit will be only a nomenclature to facilitate the understanding of the quantities visually, but internally only the uLP unit will be used. They will function the same as the ADA unit and the Lovelace unit. The amounts of UI deposited or withdrawn will be 1:1 with the uLP token.

These will be the conversions:<br>

* UI and uLP will be equivalent (1:1) in quantity and value in ADA.
* 1,000,000 uLP = 1 LP&#x20;

We may, for example, deposit or withdraw 1,600,000 UI, equivalent to 1,600,000 uLP or 1.6 LP.

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