# Problem

<figure><img src="/files/zq5hAJT1V4DUkCSE4ZNu" alt=""><figcaption></figcaption></figure>

## What problem is Fume solving?

Despite the rise of programmable money (stablecoins), fund operations remain manual. Investor deposits, compliance checks, NAV updates, and fee payouts all require human processes that introduce friction, errors, and regulatory exposure.

**Context**

* Asset managers, HNWIs, and professional investors are rapidly adopting **USDT, USDC, and other stablecoins** for investing and settlements.
* Stablecoins enable **instant, 24/7 transfers** and are becoming the preferred medium for cross-border capital movements.
* The rise of stablecoins is transforming fund operations — but back-office processes haven’t caught up.

**The Pain Points**

Despite this shift, **fund operations are still manual and error-prone**:

1. **Manual Deposits = Compliance & Operational Risks**
   * Investors must manually copy addresses, select networks, and input amounts.
   * Opens the door to **AML breaches**, **phishing attacks**, **wrong currency or wrong chain transfers**, and **human errors**.
2. **Inefficient Fund Administration**
   * Every **NAV calculation**, **management fee extraction**, and **investor payout** is done manually or via intermediaries.
   * Creates **delays**, **costs**, and **reporting complexity**.
3. **Lack of Onchain Automation**
   * Stablecoin rails are programmable — but **fund workflows are not**.
   * Managers can move capital fast, but they **can’t automate fund operations** (subscriptions, redemptions, distributions).

<p align="center"><strong>Stablecoins Modernized Payments. Fund Admin Stayed Manual</strong></p>

## How did you discover this problem?

We discovered the problem while running our own Luxembourg hedge fund, where using stablecoins to simplify operations actually exposed how broken fund admin is. Investors kept sending the wrong tokens, wrong chains, or non-whitelisted wallets, and every NAV, fee extraction, and reconciliation still had to be done manually and reported with screenshots and blockchain links.

## How was this problem solved in the past?

Before Fume, the only way to manage stablecoin-based fund operations was through painfully manual workflows: onboarding investors via video calls to avoid phishing, checking every deposit (currency, chain, amount, address) by hand, requesting test transactions, and later extracting fees or redemptions manually and sending screenshots and blockchain links to administrators for reconciliation.


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