OLTIP is a rule-based, capital-backed framework for the long-duration distribution of investment income. Built for regulated financial institutions. No guaranteed liability. No actuarial complexity. No balance sheet exposure.
A rules-based protocol for distributing investment income over a lifetime — implemented by regulated banks, asset managers, and fintech platforms.
Not an annuity. Not an insurance product. Not a fund. No guaranteed payout, no actuarial reserve, and no balance sheet exposure for the implementing institution.
Regulated financial institutions evaluating long-duration, fee-based product architecture. Full implementation details available under NDA.
Most developed economies operate pension systems designed for rising workforces, shorter lifespans, and stable demographic ratios. None of those conditions hold today.
Governments are extending retirement ages, reducing benefits, and deferring a reckoning that arithmetic makes unavoidable. The private sector's response — guaranteed annuities, insurance wrappers, structured products — transfers risk onto institutional balance sheets through actuarial reserves and solvency capital requirements.
OLTIP removes that trade-off entirely. By making income always proportional to capital, it eliminates the guarantee liability while preserving the long-duration distribution function institutions need to serve.
Structurally exposed to demographic compression. Rising longevity and falling birth rates create fiscal pressures that are already manifesting in benefit reductions and retirement age increases.
Require actuarial reserves, Solvency II capital, and the transformation of market risk into institutional liability. The cost of certainty is borne by the institution — and passed to the client.
Create deterministic depletion horizons in adverse return sequences. Under prolonged market pressure, nominal certainty accelerates capital exhaustion.
OLTIP defines a precise, immutable set of rules for how accumulated capital is distributed over time. Regulated institutions implement those rules within their own legal infrastructure.
Each participant's income derives solely from their own capital. There is no pooling, no redistribution between participants, and no demographic dependency. Capital remains the participant's asset — and passes to their estate upon death.
Distributions are calculated as a percentage of net asset value. When capital grows, income grows. When capital falls, income adjusts accordingly. No fixed floor. No contractual minimum. No institutional liability.
A rolling 60-month (5-year) average of NAV moderates the transmission of short-term volatility into monthly income. The smoothing mechanism does not eliminate market risk — it moderates its transmission into income, reducing behavioral panic in downturns.
Because withdrawals are always proportional to remaining capital, there is no finite depletion horizon under any market regime. Capital may decline — it does not reach zero through structural mechanics. No fixed payout pressure exists to accelerate it.
An Income Smoothing Buffer accumulates from the difference between the payout cap and actual distributions. In downturns, the Buffer is drawn upon automatically to maintain prior payout levels. A Capital Preservation Override activates only when the Buffer is exhausted and smoothed NAV falls below 75% of its historical peak.
Every certified implementation of OLTIP rests on four non-negotiable structural commitments.
Each participant's income derives from their own accumulated capital, invested in passive, globally diversified equity markets. No pooling. No redistribution.
Monthly income is calculated by a rule-based engine — proportional to capital, smoothed for stability, and capped per account. No discretionary management is involved at any stage.
The total expense ratio ceiling of 0.15% per annum is structural, auditable, and non-negotiable. It covers asset replication, custody, administration, reporting, and certification. Cost discipline is part of the protocol definition, subject to scheduled audit.
A predefined, rule-based three-phase lifecycle: full accumulation (100% global equity), optional transition de-risking (85→75% equity), and distribution phase (75% equity / 25% sovereign bonds). No tactical allocation, no active security selection. Rebalancing is automated and non-discretionary.
| Structural Feature | OLTIP | Annuity / Insurance |
|---|---|---|
| Guaranteed payout | ✓ No — income varies with capital | ✗ Yes — fixed obligation |
| Balance sheet liability | ✓ None created | ✗ Yes — actuarial reserve required |
| Solvency capital required | ✓ No | ✗ Yes — Solvency II or equivalent |
| Capital ownership | ✓ Participant retains full ownership | ✗ Transferred to insurer |
| Demographic dependency | ✓ None | ~ Longevity modelled |
| Cost ceiling | ✓ ≤ 0.15% TER per annum | ✗ Typically 1–2%+ |
| Rule-based automation | ✓ Fully automatable | ✗ Requires actuarial management |
| Finite depletion horizon | ✓ No — proportional model | ~ Not applicable (guarantee absorbs risk) |
OLTIP is not a product to distribute. It is infrastructure to operate — with linear, durable, fee-based economics and no balance sheet exposure.
Long-duration AUM retention
Multi-decade capital lock-in. Clients don't exit a framework that is generating proportional lifetime income from their own assets.
Fee-based revenue, zero liability
Revenue is fee-based and linear. No performance risk, no spread income, no embedded insurance margin, no balance sheet exposure.
No novel regulatory category
OLTIP maps to existing collective investment frameworks in most jurisdictions — UCITS, defined contribution, long-term savings vehicles. No new regulatory structures required.
First-mover governance advantage
Early certified implementors participate in protocol governance. Certification creates a structural competitive moat through discipline — not exclusivity.
Reputational alignment
Cost transparency, structural simplicity, and prohibition of extractive fee structures align OLTIP with every major direction of regulatory and public expectation in retail finance.
Regulatory fit — no new category required
OLTIP maps to existing frameworks: UCITS collective investment vehicle, defined contribution retirement vehicle, or regulated long-term savings wrapper. Regulators increasingly emphasise cost transparency, simplicity, and risk disclosure — OLTIP aligns structurally with all four themes.
The credibility of any long-duration framework depends on structural immutability. A protocol that can be quietly modified is not a protocol. It is a promise.
OLTIP is maintained by its protocol author, Martin Buršík, acting as Protocol Steward. Work is underway to establish the OLTIP Foundation, which will assume long-term stewardship — responsible for certification, compliance audits, and governance of the recalibration process.
Any structural modification requires a 75% supermajority of certified implementors plus Protocol Steward ratification. Reviews occur only at predefined 5-year intervals. Certain changes — including any increase to the cost ceiling or introduction of guaranteed payouts — are permanently and irrevocably prohibited.
Certified implementors execute the protocol exactly as specified — including payout mechanics, lifecycle allocation, cost ceiling, and asset segregation. Partial compliance invalidates certification. Loss of certification prohibits further use of the OLTIP designation. Compliance is subject to scheduled audit, not self-reporting.
Certified institutions must: operate the payout engine as a non-discretionary automated rule engine; maintain full asset segregation in regulated custodial accounts; provide participant reporting covering NAV, smoothed NAV, monthly payout calculation, and cost disclosure; and report material deviations to the Protocol Steward.
"Infrastructure survives because it is predictable.
OLTIP is designed to behave more like a utility framework
than a performance-driven fund."
The long-term ambition: a federated institutional standard — multiple licensed implementors, multiple jurisdictions, one immutable protocol.
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OLTIP is a controlled framework. Public materials are provided for informational purposes only.
No use of the OLTIP name, no compatibility claim, no certification claim, and no implied affiliation
is permitted without prior written authorization from the protocol author or future OLTIP Foundation
once established.
Unauthorized use of the OLTIP designation — including in product names, marketing materials,
regulatory filings, or public communications — constitutes a violation of protocol governance terms
To enquire about certification eligibility or authorized use, contact
[email protected].
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