There seem to have two antipodal definitions given by CAIA institute for the term “gate(s)”.
In chapter 13, gates is defined as “fund restrictions on investor withdrawals” on page 313 of the level 1 book 3rd edition.
Then again in chapter 31, CAIA defines the term again on page 840. “A gate is a provision describing the terms under which investors may withdraw funds.”
So one definition is a restriction to withdraw fund, the other definition is essentially the opposite of restriction.
which is correct?
A gate clause would say e.g. the following:
Each quarter or redemption date max 10% of AUM can be redeemed.
Should there be more than 10% AUM redemption notices, these are served on first come, basis the other ones are priorised on the next redemption date.
Thats what I took with me from the curriculum. I have seen far more pro rata basis than first come basis clauses but that is not HF business.
Anyway: A clause that regulates redemption always is also a restriction. Otherwise everything would be repaid on demand.