Thanks for the feedback turbooster, let me know if my answers below address your concerns.
Currently 24.79% of the holdings is in LTC and 75.21% in USD. The USD/LTC rate would have to breach ~7.24USD per LTC before investors would start 'incurring losses'. Please note that this can change at any moment. With the current number of outstanding shares at 692 and FUM of ~90 LTC it means that each share is currently backed by ~90/692 = ~0.13 LTC.
As a side note, the value of LTC will for a long time yet be measured against USD:
1 LTC at a USD/LTC rate of 5 is 5 USD, 0.5 LTC at a rate of 10 is 5 USD. Most people know what they can buy with 5 USD, to know what you can buy with 0.5 LTC or 1 LTC most people will convert it to USD before they know what they can buy. Holding onto LTC with hoping it will increase in value (in USD terms) is speculative and akin to taking a bet, CPIF tries to stay away from speculating where possible.
The problem with including the first week is that CPIF has to unwind some its positions and won't be earning interest on the portion of funds that is set aside for this purpose. I am not sure what you mean by the rest of your last sentence, does this address it: CPIF will let you know (upon exchange request) how much LTC you will get per share and you can opt out of the exchange (if you let CPIF know before sending your shares) if this seems unfavourable.
All of the above figures can be made available to anyone upon request via this forum or email.