How Chocolate Finance keeps your money liquid

To support instant withdrawals, we designed a smart programme called the Liquidity Programme. This is at the heart of Chocolate Finance, ensuring that your money is not only earning happy returns but is also readily available when you need it. Here's how it works:

Investment in fixed-income &/or money market funds

‍When you add money into your Chocolate Finance account, we invest it in a diversified portfolio of fixed-income &/or money market funds. These funds are carefully selected to optimise returns relative to the target return that we set from time to time. If you were to buy these funds directly on the open market, it would typically take 3 to 6 business days for your withdrawal to be processed and paid out.‍

Instant liquidity provision

‍To give you quick access to your money, we partner with Chocolate Pte Ltd (“Chocolate”), our parent company which maintains a ‘liquidity buffer’—a pool of funds that allows us to process withdrawal requests of up to S$20k instantly for you. Here’s how it works behind the scenes:

• Instant payout: When you request a withdrawal, we use Chocolate’s liquidity buffer to buy your investment units from you (at the price on the day of request) and in turn, transfer the money to your bank account right away — no waiting. ‍
• Trade settlement: After processing your instant withdrawal, we wait for the trade to settle, which takes the standard 3 – 6 business days to complete. Once the settlement is complete, we use the funds received to replenish the liquidity buffer and support future withdrawals.‍
• Managing liquidity during high demand: ‍The liquidity buffer ensures we can handle withdrawals smoothly. However, during times of high withdrawal volume, the buffer may become depleted. In such cases, we may temporarily pause the liquidity programme to allow the pool to replenish. During this time, Chocolate is unable to buy your assets from you instantly, so withdrawals are processed in the standard 3 – 6 business day cycle, just like if you were selling them on the open market.‍
• Efficient fund management: For withdrawal requests exceeding S$20k, we initiate the sale of the underlying funds. This process typically takes 3 – 6 business days, ensuring that larger withdrawals are handled efficiently without compromising the returns on your investments.

What happens when the Liquidity Programme is paused?

In exceptional circumstances, such as an unusually high volume of withdrawal requests or trade suspension by any of the underlying funds , we may temporarily pause the instant withdrawal feature. During these periods, all withdrawal requests, regardless of the amount, will be processed within the standard 3 to 6 business days. In situations like trade suspension by any of the underlying funds, it may take longer than 6 business days. This measure ensures the stability and integrity of our investment strategy while continuing to provide you with access to your funds.

Your money is always safe.

At Chocolate Finance, the security of your funds is our top priority. All customer funds are held in segregated custody accounts with institutions licensed by the Monetary Authority of Singapore (MAS). This means that your money is ring-fenced and protected, regardless of Chocolate Finance's operational status.

In summary, Chocolate Finance's Liquidity Programme is designed to provide you with attractive returns, immediate access to your funds, and peace of mind knowing that your money is secure. We're committed to making your financial journey as smooth and rewarding as possible, ensuring that your money is always working for you.