Confidential · Accredited Investors
Investor Appendix
An interactive companion to the Paradigm Fund Series 1, LP Confidential PPM. Please enter the access phrase you were provided.
Reg D Rule 506(b)
Confidential Companion to the Private Placement Memorandum.
The track record, the people, the process, and the operating discipline — in one place, in the order you would actually want to read it.
All performance figures relate to White Hat Capital Group, LP ("WHCG"), the predecessor vehicle managed by the same principals. WHCG has been wound down. Paradigm Fund Series 1, LP has no operating history of its own. Performance is manager-reported, unaudited, gross of fees, and presented sum-of-monthly. Past performance of WHCG is not indicative of future results in the Fund. Read in conjunction with the Confidential Private Placement Memorandum.
Three chapters. Built to be read in order, but each one stands alone. Every page is sourced from the corresponding PPM Appendix and uses the same authoritative language. Nothing is marketing copy.
Origin of the strategy, the founding moment, the investment philosophy, the operating principles, and the four people responsible for partner capital.
The complete WHCG, LP case study — 36 months of monthly returns, benchmarks, the Q1 2026 activity report, the tear sheet, the methodology, the lessons carried forward.
TradeCAP, the partner portal. The approved one-pager. The full FAQ. The glossary. The communications standard. The full disclosure framework.
A decade of continuous participation in cryptocurrency markets — translated into a Regulation D fund offering only after the strategy had been operated, scaled, and concluded successfully on its own terms.
Paradigm Fund Series 1, LP is the institutional expression of an active digital-asset strategy that has been developed, tested, and refined over more than a decade of continuous participation in cryptocurrency markets. The strategy was not the product of a single insight; it was the product of iteration — thousands of trades across multiple market regimes, the discipline of running a private predecessor vehicle (WHCG, LP) through a complete operating cycle, and the deliberate decision to translate that experience into a Regulation D fund offering only after the strategy had been operated, scaled, and concluded successfully on its own terms.
The strategy now offered through Paradigm Fund Series 1, LP originated within White Hat Capital Group as a private, exclusive program tailored for a close circle of friends and family. That foundation — trust earned with real capital at risk — remains the bedrock of the firm.
The thesis. Digital assets are now a recognized, institutionally-traded asset class. And yet the market remains structurally inefficient. Liquidity is fragmented across centralized and decentralized venues; derivatives mispricing occurs around both scheduled and unscheduled events; retail participation creates exploitable behavioral patterns that do not exist in mature equity markets. A disciplined operator with isolated risk per position, short holding periods, and a process that does not flinch in drawdown can convert that inefficiency into risk-adjusted return.
What distinguishes Paradigm. The firm's differentiator is not a proprietary signal or an exotic instrument. It is a process: every position carries pre-defined risk before it is opened; every thesis is time-boxed; every month is reported on the same template; and every drawdown is treated as a data point, not a verdict.
Six convictions that shape every decision the firm makes.
We do not size positions based on how strongly we believe in an outcome. We size based on the risk we are willing to lose if we are wrong. Conviction without risk discipline has bankrupted more managers than any market.
Holding periods measured in hours and days, not weeks and months. Short duration reduces overnight, weekend, and macro-event exposure; it compounds the effective number of independent risk decisions per year.
Each position is sized as a discrete bet with a pre-defined maximum loss. Cross-margin contagion — the silent killer of leveraged crypto books — is structurally avoided.
Every month, partners receive the same line-by-line activity report: every trade, every entry, every exit, every result. Reporting transparency is not a courtesy; it is the discipline that keeps the manager honest with himself.
Annual returns are the byproduct, not the objective. The objective is to be in business in five years, ten years, and twenty years. That is only possible if downside is the first variable, not the last.
In digital-asset markets, volatility is often misread as a defect. Met with institutional rigor — pre-defined risk per position, isolated margin, short holding periods, and a written process — volatility becomes the source of asymmetric opportunity.
Six principles that govern day-to-day operation. Non-negotiable across all vehicles and all market regimes.
No position is opened without a written maximum acceptable loss. The stop is the trade; the trade is not the stop.
Partners receive the same line-by-line monthly activity report on the same template, regardless of whether the month was strong or weak. The report is the discipline.
The manager observes a deliberate trading hiatus in each calendar year (historically July or August). Time away from the screen is treated as a risk-management input, not an opportunity cost.
Material operational changes — service-provider transitions, fee modifications, methodology adjustments — are communicated to partners in writing before they take effect.
Partners can reach a principal directly. The firm does not hide behind an investor-relations layer.
Public-facing communications are limited to what the firm can substantiate, document, and stand behind in a regulatory inquiry.
The firm was deliberately built in this order — trader first, operator second, communicator third — because, in the principals' view, it is the only order that produces a fiduciary outcome.
Chris's edge is the rare blend of a clinician's pattern recognition and a competitor's nerve. A pre-med student and collegiate baseball player, he learned early that high-stakes performance is built on repetition, discipline, and the ability to stay calm when outcomes are uncertain.
That foundation now drives a data-first approach to digital-asset markets — isolated risk on every position, hours instead of weeks in each trade, and a process that does not flinch when the market does. Chris is the architect of the strategy that produced the WHCG, LP track record and is the trader of record for Paradigm Fund Series 1, LP.
Responsible for trade selection, position sizing, execution, and intra-day risk management of the Fund.
Beau holds an Economics degree from the University of Houston and a Master's in Communications from Louisiana Baptist University — a combination that makes him uniquely effective at turning a complex strategy into a clear, honest conversation.
At Paradigm, he runs operations and investor education, ensuring every partner understands what the Fund is doing, how it is doing it, and how to interpret the results within the context of the strategy — not just what happened, but what it means. A father of four and a serious golfer.
He views communication as a structural component of the investment process — where clarity, consistency, and transparency reinforce trust over time.
Responsible for fund operations, partner education materials, monthly and quarterly reporting cadence, service-provider relationships, and all legal-counsel liaison.
Austin runs the partner side of the Fund — capital formation, investor relationships, and the day-to-day decisions that keep a private fund honest. His path here ran through five years of military service and the founding of multiple operating companies in financial services and private equity.
He brings the same standard to Paradigm: clear communication, no surprises, and a fiduciary mindset that treats every dollar of LP capital like it is his own family's money — because in many cases, it is.
Responsible for partner relationships, capital formation, and overall firm management. Primary point of contact for prospective Accredited Investors with whom the firm has a pre-existing, substantive relationship.
Alex manages onboarding, account operations, and ongoing technical support for partners of the Fund. He specializes in translating complex systems into clear processes, ensuring smooth execution, accurate reporting, and operational efficiency across the partner base.
Primary point of contact for subscription documents, wire instructions, capital calls, quarterly statement delivery, and K-1 distribution.
To operate a disciplined, transparent, process-driven digital-asset investment program that is durable across market cycles and honorable in its conduct toward the partners whose capital it manages.
VisionTo be regarded, twenty years from inception, as one of the small number of digital-asset managers that operated through a complete industry maturation without losing the trust of its partners or the discipline of its process.
A complete case study of the strategy at private-fund scale across a complete operating cycle. WHCG, LP has been wound down; this is the authoritative source for its track record. Variability in individual months is expected; consistency of process across months is the defining characteristic.
WHCG, LP was a privately-offered limited partnership managed by the same principals who manage Paradigm Fund Series 1, LP. WHCG was operated for approximately thirty-six (36) months across calendar years 2023, 2024, and 2025, and continued to trade through the first quarter of 2026, during which the manager applied the active digital-asset strategy described in the PPM and Appendix A.
WHCG has since been wound down on the manager's schedule. This appendix presents the predecessor track record as a complete case study of the strategy and as the evidentiary basis for the manager's offering in Paradigm Fund Series 1, LP.
The purpose of this case study is not to present isolated performance outcomes, but to provide a complete view of how the strategy operated across a full cycle — including periods of expansion, compression, and inactivity. The manager believes that durability of process, rather than any single result, is the relevant measure of performance.
All performance figures are presented under a single, consistent methodology so that they may be reproduced and verified by the manager, by counsel, and by prospective investors. The methodology is disclosed prominently because the firm believes the methodology is part of the number.
Annual returns are calculated as the arithmetic sum of the manager's reported gross monthly percentage results. Not time-weighted, geometrically compounded, or money-weighted. This methodology overstates the result a Limited Partner would have realized over the same period.
Returns are gross of management fees, performance allocations, and fund-level expenses. Net returns to a Limited Partner in the Fund will be lower — in many cases materially lower — than the gross figures shown here.
Returns are derived from internal trade records and broker confirmations. Not audited or independently verified. The manager intends to engage an independent third-party fund administrator and a PCAOB-registered auditor for Paradigm Fund Series 1, LP.
Two hiatus months (Jul 2023, Aug 2024 — zero return, no trading) and one negative month (Feb 2025: −5.78%) are shown explicitly. Not imputed, smoothed, or excluded.
The monthly series is the clearest representation of how the strategy behaves in practice. Toggle a year to see the distribution.
| Avg Monthly Return | WHCG: 6.97% · BTC: 5.73% · S&P 500: 1.68% |
| Positive Months | WHCG: 33 of 36 · BTC: 22 of 36 · S&P 500: 25 of 36 |
| Largest Single-Month Loss | WHCG: −5.78% · BTC: −24.82% · S&P 500: −8.61% |
| Volatility (σ of monthly returns) | WHCG: 7.37% · BTC: 15.10% · S&P 500: 3.44% |
"Largest single-month negative return" is not the same as a peak-to-trough drawdown. Drawdown analysis is available on request to verified prospective investors.
33 of 36 months were positive across the WHCG operating cycle.
In months when Bitcoin declined, WHCG was positive in 11 of 14 of those months.
In months when the S&P 500 declined, WHCG was positive in 9 of 10 of those months.
The first quarter of 2026 is the most recent contiguous window of WHCG activity prior to wind-down. The manager treats Q1 2026 as the most representative recent sample of the strategy in operation.
A 26-trade month dominated by a single high-conviction Bitcoin long (Jan 6 → Jan 18, +47.47%, approximately +$1.18M) that produced the bulk of the month's P/L. Win rate of 42% reflects the strategy's asymmetry: the manager is willing to absorb a higher count of small losers in exchange for a small number of large winners on isolated risk.
A 15-trade month with a 67% win rate and a single dominant winner: a Bitcoin position contributing approximately +$880K. The largest negative was a LINK position (approximately −$152K) that was closed within the trade's pre-defined risk parameters. Net P/L: approximately +$1.17M.
A 14-trade month with a 64% win rate and more compressed P/L distribution. Best trade an ETH long (approximately +$74K); worst a BTC trade (approximately −$36K). The month closed +$163K and is illustrative of the strategy's behavior in a quieter regime: smaller absolute numbers, similar process, similar discipline.
This period is illustrative not because of the magnitude of individual outcomes, but because it reflects the consistent application of the same process across varying market conditions.
The authoritative single-page summary of the WHCG, LP track record. The only tear-sheet template approved for reuse in marketing or investor-facing contexts.
| 2023 gross return (sum-of-monthly) | +48.31% |
| 2024 gross return (sum-of-monthly) | +130.02% |
| 2025 gross return (sum-of-monthly) | +64.30% |
| 3-year cumulative (sum-of-monthly) | +242.63% |
| Average monthly return (36 months) | 6.97% |
| Volatility of monthly returns (σ) | 7.37% |
| Positive months | 33 of 36 |
| Largest single-month loss | −5.78% (Feb 2025) |
| Hiatus months (no trading) | Jul 2023, Aug 2024 |
| Q1 2026 net P/L (manager-reported) | approx. +$2,452,532 |
| Q1 2026 trade count | 55 |
| Q1 2026 average monthly win rate | ~58% |
The WHCG case study is, in the manager's view, a story about repeatability of process across thirty-six months and three distinct market regimes. Three lessons carried into the Fund:
WHCG outgrew its initial operational stack twice. The Fund is launching with audit-ready books, qualified custody arrangements, a third-party fund administrator, and counsel-reviewed subscription documents in place from day one.
Limited partners stay because they understand exactly what they own. The Fund will deliver the same monthly line-by-line activity reporting that defined the WHCG partner experience, plus quarterly NAV statements from the administrator.
WHCG was wound down on the manager's schedule, not the market's. The manager treats a closed-fund cycle as a feature: evidence that a strategy can be operated, scaled, and concluded without the disorderly outcomes that have defined many digital-asset vehicles.
The transition from WHCG, LP to Paradigm Fund Series 1, LP reflects an evolution in structure, not a change in philosophy. The strategy, risk framework, and operating discipline remain intact; the difference is that infrastructure, reporting, and governance have been formalized from inception rather than built alongside the capital base.
The case study presented here is not intended to suggest certainty of outcome,
but to demonstrate consistency of approach.
The reporting layer, the partner portal, the public materials, and the disclosure framework — every component your team will interact with after subscription.
TradeCAP is the Fund's dedicated client administrative and reporting interface, designed to provide Limited Partners with structured, consistent access to Fund information within a controlled and disciplined reporting environment. It is the presentation and access layer between the Fund's underlying trading activity and the Limited Partner's capital account visibility.
Standardized monthly activity summaries, position-level outcomes, and performance breakdowns presented in a way that is consistent with the Fund's reporting methodology — closed and realized activity only.
Intentionally designed to prevent exposure of sensitive trading logic, real-time positioning, or execution strategy. Confidentiality preserved while transparency standard is maintained.
All Limited Partner-facing reporting is aligned with the Fund's end-of-month close and Net Asset Value (NAV) process described in the PPM. Same disciplined structure each period.
Beyond reporting, supports onboarding workflows, document handling, capital-account reference points, and partner communication — reducing operational friction while maintaining audit trails.
Does not replace independent fund administration, custody, or audit. The Fund's official books and NAV are maintained through third-party providers identified in the PPM. TradeCAP is supplemental.
Restricted to approved users; role-based permissions; each LP views only their own information within a secure environment consistent with confidentiality and data-protection standards.
TradeCAP is a supplemental interface only. It is not the Fund's official book of record. In any conflict between information displayed in TradeCAP and the Fund's official records as maintained by its third-party service providers, the official records control.
The approved one-pager is the only single-page summary cleared for use with verified prospective Accredited Investors. It does not contain performance figures and is not a public solicitation.
| Vehicle | Paradigm Fund Series 1, LP — Texas limited partnership |
| General Partner | Paradigm Capital Group, LLC |
| Strategy | Active trading of liquid digital assets (BTC, ETH primary) |
| Offering | Private placement under Rule 506(b) of Regulation D |
| Eligible Investors | Accredited Investors (Rule 501(a)) who are also Qualified Clients (Adv. Act § 205-3), with a pre-existing, substantive relationship |
| Predecessor | WHCG, LP (wound down) — see Track Record above |
| Holding Period | Hours to days (predominantly intra-week) |
| Risk Framework | Pre-defined per-position risk; isolated margin; drawdown protocol |
| Reporting | Monthly partner activity report through TradeCap partner portal; annual K-1 |
| Service Providers | Hendershot Cowart P.C. (counsel) · The Pierson Firm (tax/accounting) |
| Subscriptions | By PPM and subscription agreement only |
| Contact | Austin Timmons, Managing Partner — austin@paradigmreserves.com |
The structure in plain English. Definitive terms are governed solely by the PPM and the limited partnership agreement.
| Fund | Paradigm Fund Series 1, LP (Texas LP) |
| General Partner | Paradigm Capital Group, LLC (Conroe, Texas) |
| Investment Manager | Paradigm Capital Management, LLC |
| Strategy | Active digital asset management; volatility capture, liquidity-first, downside-aware |
| Target Fund Size | $25,000,000 |
| Investor Eligibility | Accredited investors who are also qualified clients (Rule 506(b); Adv. Act § 205-3) |
| Minimum Commitment | $100,000 (GP may, in its sole discretion, accept a lesser amount or waive) |
| Management Fee | 2.0% of NAV per annum (GP may, in its sole discretion, waive or reduce) |
| Performance Allocation | Tiered — 30% / 20% (GP discretion). Per-LP high-water mark · Loss carryforward · Monthly crystallization |
| Hurdle / Preferred Return | None |
| Initial Liquidity Restriction | 30 days from admission (waivable by GP in its sole discretion) |
| Redemption | After the 30-day restriction, on 30 days' prior written notice; LPA gating provisions apply |
| Distributions | Reinvested by default; cash distribution by election |
| Reporting | TradeCap partner portal; monthly statements; annual K-1 |
| Custody | Qualified custodians and reputable digital-asset venues |
| Service Providers | Hendershot Cowart P.C. (counsel); The Pierson Firm (tax/accounting) |
| Governing Law | Texas |
| Offering | Private placement under Rule 506(b); no general solicitation |
A non-exhaustive summary of material risks. Investors should review the complete Risk Factors section of the PPM before subscribing.
An investment in the Fund involves substantial risk and may result in the loss of all invested capital.
Digital asset markets are highly volatile. Prices can move significantly in short periods on thin liquidity.
Use of leverage and short positions amplifies both gains and losses; risk of forced liquidation exists.
Loss, theft, or compromise of digital assets at custodians or venues — and operational failures — pose risks.
Digital asset regulation is evolving and may materially restrict the Fund's strategy or operations.
The Fund is not a daily-liquidity vehicle. Redemption mechanics are governed by the PPM.
WHCG track record is presented gross, sum-of-monthly, unaudited. Different vehicle, different terms.
Past process effectiveness does not guarantee future effectiveness; market regimes can shift.
Management fees and performance allocations create incentives that may conflict with LP interests.
The Fund depends materially on a small number of principals, particularly the Chief Trading Officer.
The Fund's offering has not been reviewed by the SEC or any state securities regulator.
Tax treatment of digital assets and partnership structures is complex and may change. Consult your advisor.
Approved responses to common prospective-investor questions. May be reused verbatim in private correspondence.
Only verified Accredited Investors (as defined under Rule 501(a) of Regulation D) who are also Qualified Clients (as defined under Rule 205-3 of the Investment Advisers Act of 1940), with a pre-existing, substantive relationship with the firm. The Fund does not accept investments from non-accredited investors.
Performance shown in connection with the Fund relates to the predecessor vehicle WHCG, LP. It is presented as manager-reported, unaudited, gross of fees, sum-of-monthly. Paradigm Fund Series 1, LP has no operating history of its own.
No. WHCG, LP has been wound down. Its track record is presented as a closed-cycle case study of the same principals' strategy.
Fee terms are described in the PPM. Marketing materials do not restate fee terms; please refer to the PPM.
Liquidity terms (lock-up, gates, redemption windows) are described in the PPM and the limited partnership agreement.
The minimum is set out in the subscription documents ($100,000 baseline). The manager reserves the right to accept lesser amounts at its discretion.
Non-trading balances are held with qualified institutional digital-asset custody. Trading balances are held at tier-one regulated and institutional venues.
Yes. Limited Partners receive an annual K-1 reflecting their pro-rata share of the Fund's activity.
Monthly partner activity reports; quarterly NAV statements from the administrator; annual K-1; and ad-hoc material-event communications as needed.
Redemption mechanics are governed by the PPM. The Fund is not a daily-liquidity vehicle and is not appropriate for capital that may be needed on short notice.
No. The Fund is offered exclusively under Rule 506(b) of Regulation D. The firm does not advertise the offering, publish performance to the public, or accept inquiries from individuals without a pre-existing, substantive relationship.
The Fund provides structured, periodic reporting to Limited Partners through defined reporting channels, including the TradeCAP portal and administrator statements. Information is presented in a way that reflects realized activity and preserves the integrity of the strategy, avoiding exposure of real-time positioning or execution logic.
Verified prospective Accredited Investors with a pre-existing, substantive relationship may contact Austin Timmons, Managing Partner, directly at austin@paradigmreserves.com.
Defined terms used throughout the Fund's materials.
If you have read this appendix in its entirety, you have everything we publish before the PPM itself. The next step is the offering memorandum and subscription documents, delivered directly by the Managing Partner.
Conroe, Texas · paradigmreserves.com · Target Raise: $25,000,000 · The Fund is offered exclusively to verified Accredited Investors with a pre-existing, substantive relationship with the firm under Rule 506(b) of Regulation D.