How funds work in TradFi

How funds work in TradFi:
In traditional finance, regulators structure funds with numerous parties and strict barriers to prevent moral hazards and other risks. A hedge fund usually includes a portfolio manager, investors, banks, prime brokers, executing brokers, 3rd party sales, and custodians. Though effective in reducing risks, the system dramatically increases fund managers' and investors' time and financial costs. Here is what a traditional fund structure would look like:
Each link requires legal contracts, fees, and qualification processes. A trust fund often takes over two months to set up the structure and terms. For the fund management team, such a system is burdensome as the team has to devote human power to handle the documents and the process; For investors, most of them do not have the expertise needed to comprehend a legal contract fully. Thus, they still have to trust the fund management team, which potentially has agency problems and may harm the interest of the investors.