> For the complete documentation index, see [llms.txt](https://csigma-asset-tokenization.gitbook.io/atlas/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://csigma-asset-tokenization.gitbook.io/atlas/pool-manager/images-and-media.md).

# Create Sub Pool

### Overview

Once a **Master Pool has been activated**, the Pool Manager can define the **underlying portfolio structure** by creating **Sub Pools**.

Sub Pools represent the **actual asset allocations** where capital from the Master Pool will be deployed. Each Sub Pool corresponds to a specific investment strategy or asset portfolio managed by the Pool Manager.

A Master Pool can have **one or more Sub Pools**, but each Sub Pool is **exclusively linked to a single Master Pool**.

Sub Pools cannot be reused across different Master Pools.

### Sub Pool Types

cSigma supports two types of Sub Pools depending on the nature of the underlying investment.

#### Fixed Yield Pool

A **Fixed Yield Pool** is used when the underlying investments generate a **predictable and fixed return**.

This structure is typically used for:

* Private credit
* Structured lending
* Fixed-rate financing agreements

In this pool type, the Pool Manager defines a **fixed APR**, and the platform automatically calculates the **outstanding investment value on a daily basis** using cSigma’s investment analysis engine.

This removes the need for manual portfolio reporting.

#### Variable Yield Pool

A **Variable Yield Pool** is used when the underlying assets generate **non-fixed or fluctuating returns**.

This structure is commonly used for:

* Real-world assets
* Asset-backed investments
* Portfolios where returns depend on asset performance

In this case, the Pool Manager must **periodically report the total portfolio value**.

The reported portfolio value is used by the platform to determine the **current value of the Sub Pool**.

### Sub Pool Creation Process

To allocate investments under a Master Pool, the Pool Manager must first create a Sub Pool.

#### Step 1 — Navigate to Create Sub Pool

The Pool Manager logs into the **Institutional Platform** and navigates to the **Create Sub Pool** section under the Asset Tokenization module.

<figure><img src="https://3125893853-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Ffmxk4zctrz092V9PoVdO%2Fuploads%2FiskdVSChAduF93aardfq%2Fimage.png?alt=media&amp;token=db70a71d-3949-42a8-ac3c-bd2915f67cbb" alt=""><figcaption></figcaption></figure>

#### Step 2 — Fill Sub Pool Details

The Pool Manager must provide the following information:

**Pool Type**\
Select the type of Sub Pool:

* Fixed Yield
* Variable Yield

**Name**\
The name of the Sub Pool representing the underlying portfolio.

**Loan Tape (Optional)**\
A loan tape document containing details of the underlying assets or loans.

This field is typically used for **Fixed Yield pools** where detailed loan-level information is available.

**First Loss**\
The portion of capital that will absorb losses before affecting lender capital.

This represents the **Pool Manager’s risk participation or credit protection layer**.

**Investment Term (Months)**\
The expected investment duration of the pool.

This defines the time horizon for capital deployment.

**Pool Size**\
The maximum investment capacity allocated to this Sub Pool.

**APR**\
This field is required **only for Fixed Yield pools**.

The APR is used by cSigma’s **investment analysis engine** to calculate the **daily outstanding value of investments** in the pool.

<figure><img src="https://3125893853-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Ffmxk4zctrz092V9PoVdO%2Fuploads%2F9up2sahBvhno7XM5jZpW%2Fimage.png?alt=media&amp;token=0d2fa5ce-1cb9-4228-b667-f5ed7287baa4" alt=""><figcaption></figcaption></figure>

Variable Yield pools do not require APR input.

#### Step 3 — Submit Sub Pool Creation

After filling in the required details, the Pool Manager submits the form to create the Sub Pool.

Once created, the Sub Pool will appear in the **Investment Pools** section of the platform.

<figure><img src="https://3125893853-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Ffmxk4zctrz092V9PoVdO%2Fuploads%2FkTUALOBrOQrLLfzg7QH1%2Fimage.png?alt=media&amp;token=3d962a8e-df8e-470a-8983-65519ecec0c5" alt=""><figcaption></figcaption></figure>

### Relationship Between Master Pool and Sub Pool

Sub Pools are **dedicated to a specific Master Pool**.

Key rules include:

* Each Sub Pool is linked to **only one Master Pool**
* A Sub Pool **cannot be attached to multiple Master Pools**
* Pool Managers must create **separate Sub Pools for different Master Pools**
* A Master Pool can allocate capital across **multiple Sub Pools**

This structure allows Pool Managers to **build diversified portfolios under a single Master Pool**.

### Portfolio Allocation

Once Sub Pools are created, the Pool Manager can:

* Allocate capital from the Master Pool
* Track portfolio performance
* Manage investment strategies across different Sub Pools

### Important Notes

* Sub Pools represent the **actual deployment of capital into underlying assets**.
* Fixed Yield pools use **automated value calculations** based on APR.
* Variable Yield pools require **periodic portfolio value reporting** by the Pool Manager.
* Each Sub Pool is **exclusive to a single Master Pool**.

### Role Responsibility

**Pool Manager Responsibilities**

* Define the underlying portfolio structure
* Create Sub Pools linked to the Master Pool
* Provide accurate investment parameters
* Report portfolio value for Variable Yield pools

**cSigma Platform Responsibilities**

* Calculate outstanding values for Fixed Yield pools
* Track capital allocation across Sub Pools
* Maintain the structural link between Master Pools and Sub Pools

This architecture enables Pool Managers to **structure and manage diversified investment portfolios while maintaining transparency and reporting consistency for lenders.**