Frequently Asked Questions

You can start using L1 as a financial advisor, Registered Investment Advisor (RIA), or wealth manager by creating an advisor account. As soon as you connect your wallet and create your account, you will be able to start inviting your prospects and clients and start advising them.

To invite clients or prospects, click the Invite a Client button on the right hand side of your dashboard. You will be able to invite clients via email or by sharing your personal invite link.

When you invite a client or prospect and they accept your invitation, they will appear as a prospect until you request advising access to their wallets and they accept your request. Only you as an advisor can send advising requests. To do so, simply head over to the Advising & Billing tab on the left hand side and then select the person you would like to request advising access to. You will see a list of their wallets, their balances, and will be able to request advising access to any or all of them. Once you request advising access, the client will receive a notification and will be able to accept or decline your request. If they accept, you will be able to start advising them right away, and fees will begin accruing.

As an advisor, you may choose your own rate and fee structure. You have three options to charge clients: an AUA (Assets Under Advisement) fee set in percentage form, a performance fee, and a minimum or subscription monthly fee. You may set up one or more fees, and they will begin accruing when a client accepts your advising request. You can set up your fees from your Settings Page.

L1 is a freemium product. Our basic product is free and it provides advisors with read-only access to their clients' digital asset portfolio, as well as syncs up that data with their back office solution. Our paid product enables advisors to advise on clients' self-custodied assets and make non-discretionary transaction recommendations on those AUAs. Assets under advisement accrue Platform Fees, charged to advisors.

L1 charges a Platform Fee based on an advisor's AUAs. Our Platform Fee is charged to advisors, in arrears, every month. The Platform Fee is calculated as a percentage of the advisor's AUAs at the end of the month. The Platform Fee is calculated as follows:

Platform Fee = (AUAs x Platform Fee) / 12

The Platform Fee starts at 0.5% for the first $49M in AUAs, and it decreases as an advisor's AUAs increase, as follows:

$1-49M AUAs - 0.5% per year
$50-99M AUAs - 0.45% per year
$100-199M AUAs - 0.40% per year
$200-499M AUAs - 0.35% per year
$500-799M AUAs - 0.30% per year
$800M-999M AUAs - 0.25% per year
$1B+ AUAs - 0.20% per year

For example, an advisor with AUAs valued at $150M at the end of a monthly billing cycle would pay the following Platform Fees:

- First $49.99M at 0.5% = ~$249,999.99 per year
- The next $49.99M at 0.45% = ~$224,999.99 per year
- The last $50.01M at 0.40% = ~$200,004 per year

Based on the calculations above, the advisor would pay a total of ~$675,003.98 per year in Platform Fees, so they would be sent an invoice of $56,250.33 for the current monthly billing cycle.

Assets Under Advisement (AUAs) are calculated by taking a daily snapshot of your clients' assets which you are currently advising, and averaging them over the course of a month.

Fees are accrued and become due at the end of every monthly billing cycle. You will be able to send a payment request denominated in USDC to each client from the Advising & Billing tab. Your clients may pay you directly with their crypto wallet. You may also choose to charge your client outside of our platform, and you can manually mark their fees as paid from the same tab. Additionally, you can choose to waive fees for any client at any time.

L1 is a fully-non-custodial platform, which means that as an advisor, you don't have discretion over your clients' assets, nor can you move or access assets on their behalf. Through our platform, you can make transaction recommendations for your clients directly on DeFi protocols, which they can then choose to accept or decline. If they accept your recommendations, you will be able to see the transaction in your Recommendations tab, and you will be able to see the transaction in your client's Transactions tab and any updated positions on their Dashboard.

L1 is SOC 2 Type 2 compliant and built its platform from the ground up following the highest security standards and best practices. L1 is also a fully non-custodial platform, which means that we do not have access to your assets, nor can we move or access them on your behalf. We use encryption to protect your data, and we do not store your private keys.

We support all the major self-custody wallets. Clients and Advisors can connect their wallets through MetaMask and any WalletConnect-supported wallet. Clients may also use L1 by connecting with their email address, which will automatically provision a self-custody wallet associated to their email.

Currently, we pull assets, positions, and balances from Ethereum Mainnet, Bitcoin, Arbitrum, Aurora, Avalanche, BSC, Fantom, Gnosis Chain, Loopring, Optimism, Base, and Polygon PoS. You can currently make and accept transaction recommendations on Ethereum Mainnet, Polygon, Arbitrum, Base, and Optimism.