Iron Rules — Fund A's five constitutional provisions
The five non-negotiable risk and structural rules that govern Fund A — leverage ceiling, reserve floor, concentration cap, permanent HWM, GP co-invest.
TL;DR: Fund A's five Iron Rules are non-negotiable. They are the discipline that makes the DNSA-Engine signals (which are explicitly non-proprietary) into a defensible system: edge is execution, not signals.
Status as of 2026-05-27: public concept reference.
Relations
- DRIP-ON — operationalizes Rule 1.
- DNSA Engine — Iron Rules govern when its signals are honored.
- T-Bill Float Engine — Rule 2.
- Aloha Flywheel — Iron Rules constrain every step.
- Five Iron Rules + Five Filters — One-Pager — Five rules + five filters one-pager.
- Iron Rules — Five Pillars — Five pillars diagram.
- Iron Rules + DRIP-ON — Reference Math — DRIP-ON reference math.
The five rules
1. 1.50× leverage ceiling
Total leverage (cash-margin + options notional + repo) never exceeds 1.50× of NAV. Bright-line. No exceptions for "obvious" trades.
2. 22% T-Bill reserve floor
Minimum 22% of NAV held in T-Bills at all times. The reserve does three jobs (see T-Bill Float Engine): risk-free yield, collateral for cash-secured puts, constitutional safety floor.
3. 15% concentration cap
No single name exceeds 15% of NAV. Even Berkshire. Even Apple. The cap is what prevents the conviction style from becoming a single-name story.
4. Permanent High-Water Mark
Incentive allocation only against the all-time-high NAV per LP. No reset on calendar boundaries, no reset on capital additions, no annual reset.
5. 5% GP co-invest, first-in / last-out
GP commits at minimum 5% of fund assets, subscribed first and redeemed last. GP eats their own cooking first — and gets out last if the fund unwinds.
Why these five and not seven
The temptation in fund design is to add rules until every LP objection is pre-answered. The discipline of exactly five is itself part of the brand: the rules a partner can recite from memory are the rules that actually get enforced. Seven rules become a checklist. Five become a constitution.
How the Iron Rules interact with DNSA signals
The DNSA Engine signals — RSI, VIX, put/call ratios, credit spreads, IV rank, Bollinger position — are non-proprietary discipline tools, not sophisticated indicators. The edge is that the Iron Rules are honored when the signals say go and when they say stop. Every fund has signals. Few have constitutional rules that override them when concentration / leverage / reserve thresholds are hit.
What violates the Iron Rules
- A trade that would push leverage above 1.50× — refused, even if it locks in a 30% expected gain.
- A position that would exceed 15% — premium / proceeds route to next-best-Ace.
- A redemption that would breach 22% reserve — gated.
- An incentive computation against a non-permanent HWM — does not exist.
- A GP redemption ahead of LPs — does not exist.
A note on framing
This page describes a framework. It is not, and is not intended to be, a solicitation, an offer, or LP-facing material.
Sources
- Internal Hussh source note - iron rules concept page synthesis and public wiki publication context.