According to a report by Unchained, Berachain allegedly provided Brevan Howard Nova Digital with exclusive refund rights on its $25 million investment. This arrangement, part of Berachain's Series B funding round co-led by Brevan Howard, was reportedly kept undisclosed to other investors involved in the deal. The provision allows the hedge fund to potentially reclaim its capital under specific conditions, effectively creating a risk-free exit clause. This 'refund right' offers downside protection that is highly unusual in standard crypto venture capital equity or token rounds. Critics view this arrangement as a bearish signal, suggesting potential incentive misalignment between major traditional finance players and other stakeholders. Such terms highlight the significant leverage prominent traditional finance firms hold in crypto infrastructure rounds, allowing them to negotiate safety nets while maintaining upside exposure. [Update 1] New reports emphasize that this provision is a rare form of downside protection not typically found in standard VC deals, underscoring the negotiating power of major traditional finance entities like Brevan Howard in the current market environment.