# General ### **What is Tangible?** Tangible is a tokenization protocol that brings valuable, real world assets on chain. Tangible operates on re.al, an L2 blockchain dedicated to real world assets (RWAs.) ### How Does Tangible Work**?** The TNFT (“Tangible non-fungible token”) is the base building block in the tokenization process. RWAs are minted into TNFTs which are then used as backing for products like [Baskets](/baskets/overview). Tangible Custody and KYC'd users can mint TNFTs and other RWA-backed assets on Tangible, using cryptocurrencies including [USTB](/ustb/ustb-token), Tangible's stablecoin backed by tokenized US treasury bills. USTB is a wrapped version of [Mountain Protocol's USDM](/ustb/backing-asset-usdm). Users can freely transfer these assets to other wallets/users, sell the assets on a DEX or in Tangible's marketplace, or farm the assets to earn yield. The TNFT is a liquid, tradable and redeemable asset, represented by an on-chain NFT At any time, KYC'd owners of TNFTs can also redeem the underlying physical asset, from gold bars to whole properties. #### **Real Estate Tokenization Flow**
1. Tokenized property sits within an individual SPV (special purpose vehicle), with holds the rights to the title and other agreements in-place to facilitate management of the property 2. The TNFT is minted granting user beneficial ownership over the SPV, including the rights to rental income and the ability to sell the TNFT or redeem the underlying real estate asset 3. Concurrently, fiat funds to complete the real estate purchase are moved off-chain to finalize the real world transaction 4. TNFT is purchased in the marketplace and sent to the user’s wallet, for safekeeping, trading, or selling. 5. The user collects rental yield on the Tangible site or mints the TNFT into Basket tokens for additional use cases #### **When a user purchases an item from another user on Tangible’s marketplace…**
1. Users browse and purchase items on Tangible’s marketplace. 2. The existing TNFT is transferred to the buyer's wallet. 3. Concurrently, USTB tokens are sent from the Buyer’s wallet to the Seller’s wallet. Smart contracts process the trading fee, item purchase fee, and storage fee (relevant to assets like gold.) Physical items remain in storage unless the Buyer decides to redeem it. 4. The marketplace transaction fee is distributed to veRWA holders, claimable in the dashboard. ### What problems does Tangible solve? We identified two problems in the market today. 1. Investors are looking to store their wealth in alternative asset classes, such as art, wine, and antiques, in order to hedge against inflation and unstable political and economic conditions. Most of these asset classes are illiquid, fragmented, and inefficient. 2. Cryptocurrency has risen as an alternative store of value, but is cyclical and volatile. In addition, crypto investors lack access to emerging tangible asset classes (unless they leave the crypto ecosystem, and use fiat currency to purchase stores of value such as fine wine, jewelry, antique cars, and other collectibles). Tangible bridges these two, by simultaneously providing a liquid market for off-chain assets, and allowing crypto investors to buy, sell, and trade tangible yet liquid assets. It makes complicated flows safer and easier, and removes the fragmented and inefficient processes that exist today. ### What currencies will Tangible accept? Tangible accepts payments in $USTB and $ETH. # Legal ### Accessing Tangible Access to the Tangible website and dApp is restricted, and only available to residents of authorized countries. United States residents are amongst the list of blocked users. ### Who owns the rights to the physical item? As with many tokens that represent another asset, the legal ownership of the asset remains with the token issuer, and the beneficial ownership is transferred with the token. This means that the owner of the wallet that holds the TNFT is essentially the owner of the asset, and simplifies taxable events for both Tangible and Tangible’s users. It’s functionally the same as all USD-backed stable coins: the custody of the USD and legal ownership both remain with the token issuer, but the token holder can -- at any time -- enact their beneficial ownership rights and become the legal owner, by burning the stable coin and having the USD transferred to them. Tangible token holders can, at any time, become the legal holder by redeeming their TNFT, which consists of changing the status of the token and taking full possession of the physical object or, in the case of properties, the SPV. ### Are Tangible TNFT goods insured? Yes, all Tangible assets are insured. Properties carry up-to-date property insurance. Tangible goods, such as gold bars, are insured from purchase, initially by the supplier, then by the shipping company, then by our storage providers. ### Does Tangible require KYC? Tangible Custody will require KYC to mint or buy a new TNFT in the marketplace. Redeeming TNFTs for the underlying assets will also require KYC. In any situation where user funds are moved off-chain for an asset purchase i.e. TNFT mint or initial purchase, this triggers the need to KYC the buyer. Similarly, when TNFTs purchased with crypto are redeemed for the underlying assets, initially acquired by Tangible via fiat, KYC must be completed. KYC is not required to trade TNFT’s in peer-to-peer transactions via decentralized smart contracts. KYC is also not required to mint TNFTs into Basket tokens. These contracts are overseen by the realDAO and RWA token holders, not controlled by Tangible Labs or Tangible Custody. In lay terms, any crypto-to-crypto transactions will not require KYC, but for any crypto-to-fiat or fiat-to-crypto transactions, KYC will be required. **Where KYC is required, Tangible uses the following AML/KYC procedure, described below.** Our aim is to ensure customer legitimacy and prevent illegal activities like money laundering and fraud. 1. Customer Identification and Verification through Fractal ID: 1. Identification and Verification uses customer provided personal details and valid IDs (passport/driving license) and checks for liveness and uniqueness, ID document verification, age verification, residency verification, high-risk country checks, and PEP/Sanction list checks. 2. *Escalation Process: Cases with red flags are reviewed by a senior Onboarding Team member*. 2. Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) by Tangible: 1. CDD Process: 1. Information Collection: Additional info gathered through Fractal ID and Chainalysis. 2. Risk Assessment: Based on geographic location, transaction nature, and amount. 2. EDD Process (for high-risk customers): 1. Additional Info: More detailed customer information, including source of wealth and funds. 2. In-depth Risk Assessment: Detailed analysis of transaction history and financial crime connections. 3. Ongoing Monitoring: Frequent review of transactions to manage potential risks. **Endeavoring to align with maximum compliance, all US-based IPs are blocked from accessing the Tangible front end.** ### What is Tangible’s legal structure? **re.alDAO** A protocol and a token-run decentralized autonomous organization. re.alDAO is not technically a legal entity, but rather a protocol governed by the $RWA token. The token entitles token-holders to voting and governance rights. All critical contracts in the protocol sit behind a proxy which allows the team and/or future governance votes to make updates without full redeployments. That said, all changes to the protocol, after the initial-deployment, will need to be voted on by token holders. The protocol in this case would be defined as: * **TNFT Smart Contracts**: These smart contracts are used to produce the TNFT, an ERC-721 that represents physical assets, such as real estate and gold, on-chain. TNFT contracts grant the holder beneficial ownership over the backing assets, including the right to redeem the TNFT for the backing item at any time. Each individual property or gold bar has its own unique TNFT, representing the unique, non-fungible physical asset backing the TNFT. * **USTB Smart Contracts**: These smart contracts are used to facilitate the creation of USTB, a permissionless, rebasing, cross-chain ERC-20 stablecoin. USTB is backed 1 to 1 with USDM which is in-turn fully backed by dollar-denominated assets, primarily US treasury bills. At any time, USTB can be redeemed for an equivalent amount of USDM. * **Basket Smart Contracts**: These smart contracts allow any user to convert their TNFT into an equivalent value of Basket ERC-20 tokens, processed autonomously by smart contract. Basket tokens can be managed via the Tangible UI and are recognized as standard ERC-20 tokens on any supported chain. A portion of incoming rent accrues to RWA token holders and the realDAO, as described below. * **Marketplace Smart Contracts**: These smart contracts facilitate the exchange of TNFTs. For almost every exchange between wallets, a transaction fee is charged. (Note: Initial Sales from Tangible Custody won’t include a transaction fee.) #### TNFT ltd BVI (Tangible Labs) Tangible Labs mints and sells TNFTs and also, like Uniswap Labs, will operate as one of the main contributors to the realDAO and to the smart contracts code. Tangible Labs may not be the only contributor to the protocol and any future upgrades to the code must pass a governance vote. #### BTS TNFT ltd UK (Tangible Custody) Tangible Custody is the bridge and custodian for real world assets. Its role is purely to act as a supplier & custodian for tokenized real-world assets. It does not capture any of the fees generated by the marketplace. It simply sources goods. In some cases (such as gold), it also provides storage. In the case of real estate, the company will initially purchase the property, and – after the initial marketplace sale – will continue to maintain the property and collect rents. Collected rent will be sent monthly to the DAO, minus agent fees. The DAO will then make it claimable by the users holding those TNFTs via the protocol. Tangible Custody will also operate the Tangible front end, in the same way Uniswap Labs operates Uniswap.org. #### Periods of Crisis During periods of crisis, including hacks, financial attacks, or other threats that might compromise the security of the protocol and user funds held within the protocol, Tangible Labs maintains the right to immediately address these issues, including through the alteration of protocol code, without the consent of a DAO vote. ### Non-endorsement of 3rd party protocols Due to the permissionless nature of Tangible products formatted as ERC20 and ERC721 tokens, we expect protocols to build with these products. This does not mean an endorsement of such protocols, and users should do their own research before interacting with such protocols. Although Tangible may engage in co-marketing campaigns with other protocols, such marketing does not endorse the safe use of those platforms. It should not be seen as a guarantee of the safety of such protocols. Tangible will not be liable for losses related to using Tangible assets in 3rd party protocols, including hacks or any other losses that could materialize. ### Authentication and private keys Users are the sole responsible for keeping their platform credentials and private keys secure. Users are also responsible for other users they share those credentials too. Tangible is not responsible for losses arising from login credential security compromises or loss or mismanagement of private keys. # Technical ### BASE BUILDING BLOCKS In building a protocol with the potential for lasting, long-term success, choosing the correct chain to build on is an important decision. The obvious answer is to leverage the network effects of the Ethereum ecosystem in order to maximize our reach. However, in offering RWA assets to any sized buyer, we also need a solution where the assets being traded are not out-priced by the gas required to process those transactions. At the same time, we don't want to sacrifice the security of Ethereum settlement, especially when it comes to high valued assets like real estate and treasury bills. We ultimately made the decision to relaunch Tangible on our own L2 called re.al, built with Arbitrum Orbit, one of Ethereum's leading scaling solutions. With direct settlement to Ethereum (no centralized validators, sequencers, or other off-chain storage and intermediaries) we can provide the highest-possible security guarantees and easy network onramps, without the downsides of transaction costs on the ETH mainnet. And building in the re.al ecosystem gives Tangible and any other development teams access to RWAs and off-chain yield, money legos that are unmatched in crypto and will be the launchpad for the next wave of DeFi adoption and a new money revolution. ### ORACLES AND FINGERPRINTS Before jumping into the details on the Factory Contract, let’s take a minute to look at how we’re integrating Oracles into our system. Oracles were one of the biggest challenges we had to resolve. We needed to map each item back to its market price from our suppliers, fitting within the limitation of block size. Further complicating this was the variety of products in our marketplace. At launch, we will have multiple suppliers of different assets, and within each of those assets, different permutations. For example, we offer: * Various brands and models of watches with different face sizes, band materials, and other key features. * Hundreds of varieties of wine, with varying producers, grapes, vintages, and case sizes. Our solution is **the fingerprint**, a unique ID assigned to each product. Each fingerprint has a matching product\_id, a string representing each unique item. Fingerprints are assigned to products before the TNFT is minted, and tokenIds are mapped to the fingerprint after minting. Fingerprints and tokenIds continue to remain consistent through fractionalization. Fingerprints tie all of our available stock (owned, fractionalized, and unowned) to the correct market price and metadata. There can be multiple tokenIds mapped to the same fingerprint; for example, three 100g gold bars may share one fingerprint, but each would be represented by a unique token. **THE FACTORY CONTRACT**: The whole system is designed around a Factory Contract, with a complex permissions structure outlining who/what can access this contract, and how the data can be used. At any point in time, there can be only one owner of the Factory Contract and that owner is the vendor of the items for sale in the marketplace, Tangible Labs. Through a carefully designed interface, the owner of the Factory Contract is propagated as the owner/admin of our TNFT contracts, TNFTs being Tangible NFTs that represent ownership over the physical goods that we sell in the marketplace i.e. real estate, wine, watches and gold bars. While Tangible Marketplace assets are currently limited to the above categories, we wanted to build for a future where Tangible can support hundreds or thousands of different physical asset class categories. ### THE FACTORY CONTRACT AND ITS COMPONENT CONTRACTS Our Factory Contract includes, references, or manages the following contracts in our system: * TNFT Deployer Contract * FTNFT Deployer Contract * PriceManager Contract * PassiveIncomeNFT Contract * RevenueDistribution Contract * RevenueShare Contract * Marketplace Contract Through the rest of this article, we’ll break down the details on the various component contracts and how they integrate with the system as a whole. **TNFT Deployer Contract**: \ Due to blockchain file size restrictions and the size of our TNFT contract, we were not able to include it directly with the Factory Contract. Instead, the Factory calls the deployer contract which was created specifically to deploy a new instance of the TNFT contract when necessary. **FTNFT Deployer Contract**: \ This is the same as the TNFT deployer, its only task is to deploy a new FTNFT (Fractional TNFT) contract for users that want to split their TNFT into fractions. The Factory keeps track of each FTNFT deployed through the same management system as the TNFTs. **Tangible Products Price Manager**: \ This contact contains a map between the deployed TNFT contract and its appropriate pricing oracle, enabling access to asset pricing through the Factory Contract as it contains the pricing manager. **3,3+ NFT Contract**: \ This contract locks up TNGBL tokens for 2 - 48 months. These locked token contracts will begin to accrue rewards starting on the mint date, 5/2/2022. Minting a TNFT will also mint a locked token position that provides the user with their TNGBL rewards for the duration of the chosen lock period. Early claims of locked rewards will trigger the contract to burn the amount of TNGBL that is no longer available due to the penalty of claiming early rewards. **Marketplace Fee Distributor and Revenue Share Contracts** \ The Marketplace Fee Distributor contract receives the 2.5% marketplace fees and distributes these collected fees to the Revenue Share contract on a daily basis. From there, RevenueShare makes the collected fees claimable for NFT holders. The contract tracks all the revenue generating NFTs in circulation to make sure each NFT is allocated the correct share of available fees. **Marketplace Contract**: \ This is the contract used for selling physical assets from our suppliers’ stock as well as items that users decide to sell themselves in the marketplace. The contract contains the processes for purchasing unminted (supplier items) as well as minted items (TNFTs) and it has special permissions necessary to access functions within the Factory. It also handles initial fractionalization of TNFTs and selling/purchasing FTNFTs. Specifically, the Marketplace Contract relies on the Factory Contract to: Fetch prices Fetch stock Mint the desired TNFT Transfer assets within our ecosystem Pay for storage Lock TNGBL rewards ### TNFT CONTRACTS **TNFT Contracts:** \ Tangible 100g Gold Bar TNFT Tangible 250g Gold Bar TNFT Tangible 500g Gold Bar TNFT Tangible 1000g Gold Bar TNFT Tangible Real Estate TNFT The TNFT Contract is the smart contract that describes every Tangible category. For each existing or new category on the site, a specific TNFT is deployed. The TNFT Contract contains all the fingerprints and product\_ids for that category of assets, which are assigned when the TNFT is minted. The TNFT Contract also handles details around storage payments and storage timeline expirations. Some product categories (gold bars, watches) require storage costs to be based on a percentage of the assets current value while others (wine) have a fixed storage cost per year. Real estate won’t have any storage costs which is also reflected in the TNFT Contract. The TNFT Contract also abstracts that products 3,3+ NFT which entitles the holder to claim USDC revenue share and TNGBL token rewards over time. ### **FUTURE CONTRACT UPDATES** All of our contracts have been designed to be configurable, they can easily be changed and replaced as the needs of the business evolve over time. The key exceptions to this are: **TNFT Contract** \ These contracts have been designed to cover all potential future cases that may arise and once deployed they cannot be changed without a migration. **Marketplace Contract** \ Once deployed, we cannot alter this contract without a vote through the community DAO. The owner of this contract is the DAO. # Audits & Security ### Audits Tangible’s token contracts have been extensively audited by an external party, who utilized a combination of static analysis, automated tools, and a vigorous manual review process to provide security recommendations and sign-off. Our goal is to continuously add new audits to our repository, endeavoring to establish impenetrable security over the protocol and user funds. **No new code will be deployed without audit,** unless during a [period of crisis](/protocol-overview/legal#periods-of-crisis). Tangible Custody will be audited annually. The audit will specifically cover the provenance of our goods, the integrity of our supply chain, and the flow of funds from purchasers to suppliers. It will also cover the details and quantities of all physical goods, to ensure they align precisely with every TNFT ever minted. This audit will be made publicly available.
Audit (Issuer - Product)Date Posted
Omniscia - USTB Contract Security AuditJan 31, 2024
Omniscia - Cross Chain Rebasing Token Security AuditJan 31, 2024
Omniscia - BasketsFeb 14, 2024
Omniscia - TNFT V2 Security AuditMar 4, 2024
Hacken - BasketsMay 8, 2024
Hacken - Wrapped BasketsJuly 9, 2024
### Security All critical contracts in our protocol sit behind a proxy which allows the team and/or future governance votes to make critical updates without full redeployments. Given the nascent nature of this category, mutability is critical to survival, including giving the team immediate recourse in the event of an exploit of our protocol or a partner's. As an RWA protocol, some level of centralization is already inherent in the protocol's design. That feature is embraced to ensure the users who have put their trust in Tangible will never have it broken due to the protocol’s inability to quickly respond to a [crisis](/protocol-overview/legal#periods-of-crisis) at the contract level. # RWA (TNGBL) Token ### Background The TNGBL token was the governance token for TangibleDAO with a max supply of 33,333,333. Locking TNGBL into a 3,3+ NFT provided users with two key benefits: 1. Based on the lock date and lock duration, users could earn a multiple on their TNGBL token quantity, up to 25x. Rewards accrued by block on a vesting curve. 2. Revenue from Tangible products, including CAVIAR ($CVR) and the marketplace, was distributed back to 3,3+ holders, claimable on the Tangible site. ### $RWA In Spring 2024, Tangible will migrate to **re.al**, the L2 ecosystem for real world assets. As part of this process TNGBL token holders and locked TNGBL token holders will migrate to the RWA token, the network token for that chain. RWA will exist unlocked as RWA and locked as veRWA. #### Migration There are 2 types of TNGBL holders, locked TNGBL holder and unlocked TNGBL holders. The migration process will be similar for both type of users. 1. Users will confirm “migrate,” sending their locked (3,3+ NFT) or unlocked TNGBL to a contract on Polygon. 2. Users will then receive a veRWA NFT on Real chain or unlocked $RWA on Real Chain. The lock lengths will remain the same for the migration. I.e if you have a 3,3+ NFT on Polygon that has 34 months remaining on the lock, you will receive a veRWA NFT on Real Chain with 34 months remaining on the lock. The token total and the end of the lock period will be the amount of RWA locked into the new veRWA. *\*\*\*Users will never be forced to migrate and the migration UI will be kept up indefinitely. However, claiming TNGBL from the 3,3+ contract and revenue share will no longer operate on Polygon.\*\*\** #### New Tokenomics Locked veRWA will continue to accrue revenue, with *all* protocols on re.al incentivized to send a share of their revenue to RWA token lockers. veRWA positions will eventually be tradable in the Tangible Marketplace or other NFT marketplaces that support the asset. Other updates: 1. All chain revenues from **re.al** will be distributed proportionally to veRWA holders in reETH, based on voting power. 2. No new RWA can be minted. 3. The entire supply of RWA, either locked or unlocked, is in circulation. There are no future team or VC unlocks. 4. RWA is deflationary. 1. When veRWA positions are unlocked early, a penalty is applied and those tokens are burned. 2. A tax is charged on buys and sells with a portion of the tax being burned. 5. RWA's locking mechanism is similar to that of the Solidly aka ve(3,3) model, where the more RWA you have locked and the longer period you lock for, the greater the veRWA balance. 6. veRWA remains perpetually locked at the selected duration unless deposited into the vesting contract. Once deposited into the vesting contract, voting power reduces linearly with the lock duration until it reaches zero, at which point the underlying tokens can be removed. 7. veRWA NFTs can be split and merged, allowing users full flexibility over their positions. More details on RWA can be found [here](https://docs.re.al/rwa-token/overview), in the docs for the re.al protocol. # Contracts & Addresses
ContractAddress
BalanceBatchReader 0x7EB3f5C62df5C758c9125Fed8Cf6b480e8310C0a
Mock MatrixTBD
USDUSDOracle0x61d595f7e7E9e08340c7B044499F5A25149b8Fca
FactoryV20x6DD9abb56CeCbC6FCB27a716bBECd1eFDfE09f5F
CurrencyFeedV20x7109A84D251B5D3E8C8F5b75567c3F8A7FE55605
GoldOracleTangibleV20xcbf49b0442bf684b49D30Ff4e7ED127F3CfbB60d
RealtyOracleTangibleV2 0xbd208D90051c268a412F46C9232aFA6a5Dea3C2D
Tangible V3 Token Oracle0x7FaaF5B11ddDD964572Ee0D0BE70E96deee4c7d5
Exchange0xEEA9470e652889b84389b6248017b9b278dF2318
SellFeeDistributorV2 0x377A5b13EaE6Ef488a3a5c8DA0F1f16d71465B6A
TnftDeployerV20xB65118C887748bC7d55EbDE2849dEb310beC57f9
Price manager0x3E769E2f2c649aC5E2917c58A763CE06C0255607
RentManagerDeployer0x0cC6afE54AFa1AeF0Ec94CC8471859812C54D8De
TNFT Metadata 0x048c7fB73B9FC96D17E530397213423cd366fC60
OnSaleTracker 0x9245F8B5f14c65CA4809e2CfB02343cA4c0b8143
Marketplace 0xdA1879e81C389c6D24B8a34E593c0f7a5970592b
TangibleGoldBars TNFT0x2bB20dEE05Cd10f401FfEC077530F1B3774e7b62
TangibleREstate TNFT0x03634A8Aea4Ca702c0Af7b1480c5015e5BbF3cb9
RentManager of TNFT0xDbDa59243973e9147f7b064921a238bbdEc8f4D3
RWAPriceNotificationDispatcher of TNFT0x8872300b137df58B4c2f7493DBE444D475236837
RentNotificationDispatcher of TNFT0xAB6656Ba6bEdFCb5d041868abbC3FcE3465A03cE
Tangible profile 0xE0236fFe1EEC3507c7B07e66de8e89897A563C17
TangibleReaderHelper0x23002Baf201612c8b994Cf849C9Db79B18d0116C
### Deployed Web3 Functions
XAURedstoneCID QmbGV3gJf5ZkhC1iTZAeC1fEyrPdtzXj4UNeQ8QzLwdpPf
GBPRedstoneCID QmbGV3gJf5ZkhC1iTZAeC1fEyrPdtzXj4UNeQ8QzLwdpPf
# Deprecated/Historic Addresses ## Tangible **TNGBL Token:** 0x49e6A20f1BBdfEeC2a8222E052000BbB14EE6007 **3,3+ NFTs** : 0xDc7ee66c43f35aC8C1d12Df90e61f05fbc2cD2c1 ## USDR #### Polygon: **Real USD v3:** 0x40379a439D4F6795B6fc9aa5687dB461677A2dBa **wUSDR v3:** 0x00e8c0E92eB3Ad88189E7125Ec8825eDc03Ab265 **Real USD v2:** 0xb5DFABd7fF7F83BAB83995E72A52B97ABb7bcf63 **wUSDR v2:** 0xAF0D9D65fC54de245cdA37af3d18cbEc860A4D4b **USDR v1:** 0x9008740cEf60ad6Ac6B89986Fb2200D3Faf12c7A #### Arbitrum: **Real USD v3:** 0x00c7d33fCE26AC11584582923AE4D182634de0e8 **wUSDR v3:** 0x9483ab65847A447e36d21af1CaB8C87e9712ff93 **wUSDR v2:** 0xDDc0385169797937066bBd8EF409b5B3c0dFEB52 #### Optimism: **Real USD v3:** 0x6ceD48EfBb581A141667D7487222E42a3FA17cf7 **wUSDR v3:** 0xC03b43d492d904406db2d7D57e67C7e8234bA752 **wUSDR v2:** 0x340fE1D898ECCAad394e2ba0fC1F93d27c7b717A #### BSC: **Real USD v3:** 0x509a5A600a2258d1e984b87e0DB190C6742D4Cb1 **wUSDR v3:** 0x9467f15f44A8641389556387b43d9ED3f6981818 **wUSDR v2:** 0x2952beb1326accbb5243725bd4da2fc937bca087 #### Ethereum: **Real USD v3:** 0x6ceD48EfBb581A141667D7487222E42a3FA17cf7 **wUSDR v3:** 0xC03b43d492d904406db2d7D57e67C7e8234bA752 **wUSDR v2:** 0xD5a14081a34d256711B02BbEf17E567da48E80b5 #### BASE **Real USD v3:** 0x00c7d33fCE26AC11584582923AE4D182634de0e8 **wUSDR v3:** 0x9483ab65847A447e36d21af1CaB8C87e9712ff93 #### Core: **pDAI:** 0x263fa8f30351472A1363902318098bEfAD3B440e **Incentive Vault:** 0x0c31E2E4c60563c660f3F6A3E769C310877659a3 **Real USD Migration:** 0x16B1fcB827F1EE1d3D3F873D7963b7cE93F09c35 **Real USD Treasury:** 0x6Ef682F0223687c625E6c4a115F544a80c37dA33 **Treasury Tracker:** 0x81703D071e6B86f50AE2D14bcb42794017275B4a **Ethereum Insurance Fund:** 0x5d35A37E5842F6b3072893A3f7Bf0e1d1FF80179 **Polygon Insurance Fund:** 0xD1758fbABAE91c805BE76D56548A584EF68B81f0 **Optimism Insurance Fund:** 0x7f922242d919feF0da0e40e3Cb4B7f7D3c97a63e **BASE Insurance Fund:** 0x17EE1F11AA0654Bd4ab1AF4B6b309c7F137C925e **Bribing address(All chains):** 0x81a7525cD96603Eb335A9E6e8473246f232FD71D **USDR Treasury manager**: 0x5F5b6597a5AC0d87FEff2e6757668885239ff3d2
# re.al Network Details Native bridge: "One-click" add the network to MetaMask using the button on [ChainList](https://chainlist.org/?search=re.al). | Network Attribute | Value | | ----------------- | ----------------------------------------------- | | chainID | 111188 | | Settlement Layer | Ethereum | | Currency | reETH | | RPC Url | [https://real.drpc.org](https://real.drpc.org/) | | Explorer | | [The public summary of the network can be found here.](https://raas.gelato.network/rollups/details/public/real) # Protocol Guides and Videos # How to Mint and Redeem USTB {% embed url="" %} ## Mint and Redeem USTB: Step-by-Step Guide 1. Make sure you are on the [USTB page](https://www.tangible.store/ustb) on the Tangible app. 2. To start the process, click on “Get USTB”. 3. Click on “Connect Wallet” and select your preferred wallet. 1. In this demonstration, Metamask is selected. Note that using other wallets might result in different prompts in your wallet. 4. Confirm the connection in Metamask. 5. As the minting happens on Ethereum, you need to acquire USDM on Ethereum first. You can do that by swapping to USDM on [Curve](https://curve.fi/#/ethereum/swap?from=0xa0b86991c6218b36c1d19d4a2e9eb0ce3606eb48\&to=0x59d9356e565ab3a36dd77763fc0d87feaf85508c), or by directly minting from the [Mountain Protocol platform](https://app.mountainprotocol.com/login). Though, to get an account, you need to [submit a request](https://mountainprotocol.com/contact/) and complete a KYC process. 6. Now, from the Tangible app, you can input the amount of USDM that you wish to use to mint USTB. Approve USDM token spending, and complete the minting process. 7. When the minting is completed, you can bridge USTB to re.al. Click on “Bridge”. Again, approve access to your tokens, and complete the bridging process. It will take about 15-30 minutes for your USTB to show up on re.al. If you want to redeem USTB back to USDM, you’ll need to: 1. Bridge USTB to Ethereum. Click on “Bridge”. Approve token spending, and sign the transaction. It will take about 15-30 minutes for your USTB to show up on Ethereum. 2. Now, you can redeem USDM. Click on “Get USTB” or “Mint”, and select the “Redeem” tab. Approve token spending, and sign the redeeming transaction. USDM tokens will appear shortly in your wallet. 3. USDM can be swapped for USDC or other assets on Eth on Curve and other supported DEXs. # Archive # TNGBL Token ### Basics **Max** **Supply:** 33,333,333 Below table is correct as of 2nd May 2022, will vary based on 3,3+ Positions being minted or early claims
CategoryNumber of tokensVesting% of supply
Instant liquidity engine100,000Unlocked0.38%
Dex Listing, future CEX listing and liquidity69,420Unlocked0.27%
Pre Seed and advisors1,255,8004 year 3,3+ NFTs4.81%
Team3,097,7554 year 3,3+ NFTs11.87%
IDO 325,5724 year 3,3+ NFTs1.25%
Tangible Labs2,499,9934 year 3,3+ NFTs9.58%
Bounty54,7504 year 3,3+ NFTs0.21%
DAO1,605,0354 year 3,3+ NFTs6.15%
Community (GURU - TNGBL swap)16,884,9352- 4 year 3,3+ NFTs64.73%
Remaining to be swapped from GURU193,8022- 4 year 3,3+ NFTs0.74%
### What is the 3,3+ Model for the TNGBL Token? 3,3+ introduces new — and merges existing — concepts that ultimately create a new token model. It’s designed from the ground up, for our specific use case, building on both (3,3) and (ve3,3). 1. A multiplier that rewards you more for locking staked tokens for longer periods of time. 2. Native token rewards per block. One portion can be claimed immediately, while the rest can be claimed early by sacrificing future returns. 3. Known Max Supply: 33,333,333 tokens. 4. USDC rewards, 66% of marketplace revenue is distributed to holders that have locked their tokens with 3,3+ NFTs 5. Buy and burn, 33% of marketplace revenue is used to buy and burn the token 6. Early-user rewards attached to TNFTs (Tangible non-fungible tokens) #### 1.Multiplier ![](/files/OUiEAKTqOlKILpqhGUbH) Upon launch, anyone can head to and lock their TNGBL tokens for a period of up to four years. You receive a multiplier based on the length of lock you choose. When you lock your tokens, you receive a 3,3+ NFT that represents your position, and also allows you to claim TNGBL and USDC rewards. The longer you lock your tokens, the higher your multiplier. The very highest multipliers, though, will be available immediately after launch. The early participants, who are taking on the most risk, will be rewarded the most. Max multipliers available (48-month lock) reduce using the following schedule: * Day 1, multiplier=25.0x * Day 2, multiplier=22.5x * Day 3, multiplier=20.0x * Day 4, multiplier=17.5x * Day 5, multiplier=15.0x * Day 6, multiplier=15.0x Then onwards: * Month 1, multiplier=14.6x * Month 2, multiplier=13.8x * Month 3, multiplier=13.1x * Month 4, multiplier=12.3x * Month 5, multiplier=11.6x * Month 6, multiplier=10.9x * Month 7, multiplier=10.3x * Month 8, multiplier=9.7x * Month 9, multiplier=9.1x * Month 10, multiplier=8.5x * Month 11, multiplier=7.9x * Month 12, multiplier=7.4x * Month 13, multiplier=6.9x * Month 14, multiplier=6.4x * Month 15, multiplier=5.9x * Month 16, multiplier=5.5x * Month 17, multiplier=5.1x * Month 18, multiplier=4.7x * Month 19, multiplier=4.3x * Month 20, multiplier=4.0x * Month 21, multiplier=3.6x * Month 22, multiplier=3.3x * Month 23, multiplier=3.0x * Month 24, multiplier=2.7x * Month 25, multiplier=2.5x * Month 26, multiplier=2.2x * Month 27, multiplier=2.0x * Month 28, multiplier=1.8x * Month 29, multiplier=1.6x * Month 30, multiplier=1.4x * Month 31, multiplier=1.2x * Month 32, multiplier=1.1x **The multipliers are only available until the total supply, which includes all future rewards from 3,3+ NFTs, has been reached. So minting new 3,3+ NFTs with a multiplier is limited to the time when the max supply of tokens has not been exceeded.** ![](/files/vOBbH9c4nx2z2sYNRBNj) Although the initially-staked $TNGBL tokens are locked for a certain period of time, any NFT that has the TNGBL tokens attached can be sold on the TangibleDAO 3,3+ NFT marketplace. This will create a secondary market for 3,3+ NFTs, which will allow long-term stakers to exit their position without causing any sell pressure on the underlying token. #### 2. Native token rewards per block Although the initial tokens are locked until the end of the selected lock-period, a portion of the multiplier rewards are available for claiming, per block. That portion of claimable rewards will grow as the end of the lock period nears. You can also claim a portion of the locked rewards early, in exchange for a reduction in multiplier. #### 3. A Known Max Supply The max supply for the TNGBL token is 33,333,333. The 3,3+ NFTs can only be created if the token is not currently at the max supply cap. If the token is at the max supply cap, you can still lock your tokens to receive protocol revenue, but there will be no multiplier. #### 4. USDC rewards All protocol fees accrue to token holders, and 66% are available to claim by 3,3+ NFT holders. The amount each 3,3+ NFT entitles you to claim is proportional to the max claimable amount in that NFT, and the total max claimable of all NFTs. That means that if you claim some TNGBL rewards from your 3,3+ NFT, and no-one else does, then your portion of the future USDC rewards will decrease. Locking your TNGBL tokens will allow users to lay claim to current and future potential revenues. Longer lockups result in a larger claim on future revenues due to the multiplier. Once the max supply is reached 3,3+ NFTs can still be minted with no multiplier and with a minimum lock period of 2 months to access USDC rewards. #### 5. Buy and Burn 33% of Tangible marketplace revenue is used to buy and burn the Tangible token. #### 6. Claimable Rewards aka No-Penalty Claim This is the amount of accrued TNGBL that can be removed from the NFT at any time without impacting the multiplier. There is no penalty on the multiplier. Claiming these rewards has the following impacts on the position: * Reduces the total end claimable amount by the number of tokens withdrawn * Reduces the revenue share percentage as only tokens held in NFTs can earn fees * Resets/temporarily flattens the accrual curve, meaning claimable tokens will accrue to the NFT more slowly for a period of time (similar to the early NFT phase) before accelerating into the curve and finishing with the correct total owed at the original maturity date *Example:* 250 TNGBL is locked with a 10x multiplier. At the end of the maturity period, the owner is due 2,500 TNGBL. One year in, the owner claims 50 TNGBL in "claimable rewards." The total due is now 2,450 TNGBL at the end of the maturity period as 50 of the 2,500 have been taken out. The accrual curve adjusts to the token removal and revenue share percentage drops to reflect the removed tokens. #### 7. Claim Early Claim Early removes all TNGBL accrued to the NFT and kills the multiplier. **The original locked amount will remain in the NFT until the original maturity date.** *Example:* The same 250 TNGBL are locked with a 10x multiplier, 2,500 due at the end of the maturity period. At some point in time, the "claim early" amount hits 500 TNGBL and the owner removes them. The multiplier on the NFT drops to 1x and the initial locked 250 tokens remain in the NFT until the end of the maturity date. No additional tokens will vest or accrue until the NFT matures to unlock the initial amount. #### Some details from our quant... Given an initial balance of X TNGBL, the locked supply grows according to the following formula: When currentTime increases to endTime, the full amount X multiplier is accrued by the user. Additionally, not the whole profit is available to withdraw; the amount of the profit freely available to withdraw is proportional to the squared time since the NFT was minted: Users can withdraw in full the free amount at any time (though, as noted above, this impacts the share of Tangible’s revenue the user can earn). The user can also withdraw larger amounts, over the free amount, though never more than the total accrued profit, subject to the following limits: The part of total profit over the free amount is called restricted profit: Whenever the user withdraws a fraction F% of the restricted profit, the NFT’s multiplier drops by F%. For example: * An example NFT has a multiplier of 10 and 150 TNGBL locked in * Half-way through the NFT’s lifetime, the accrued profit is 150 (10–1) (0.5)2=337.5 * Of that, 84.375 is free profit, which can be withdrawn without affecting the NFT. Remaining 253.125 is restricted profit. * Suppose the user withdraws a total of 100 TNGBLs. This is over the free amount, but within the total accrued profit. * This means that 15.625 TNGBL is drawn from the restricted profit * NFT’s total multiplier drops by a factor of 15.625 / 253.125 = 6.2%, to 9.38 The evolution of total profit and free profit is illustrated on the plot below: To determine the NFT’s multiplier, two components are considered: base multiplier and period multiplier. Base multiplier starts off at 25, dropping to 15 over the first 5 days, then decaying linearly to 5 at the end of the 4 year period. The period component is a decaying term, providing a higher premium when a longer look-up is used. The total multiplier for an NFT with lock-up time of N months is equal to Thus, locking in on the first day for the whole period of 4 years gives the full base multiplier reward. Locking up for a shorter period gives a discount on the base multiplier. For example, locking up for 2 years instead of 4 years gives a quarter of the base multiplier available on the day. These two effects combined give the multiplier plot which can be seen above. Note that after 32 months, the multiplier drops to 1, i.e. the break even amount. This encourages earlier lock-ups, at a higher multiplier. # Real Estate Each Tangible Custody-curated and Tangible Custody-managed property sits within a UK Special Purpose Vehicle, (SPV) a legal entity created solely for this purpose. TNFT holders have beneficial ownership to the SPV. All properties are leased and rental yield is paid to the TNFT holder(s) in stablecoins. This means that anyone in the world can become a buy-to-let landlord in just 15 seconds. Whenever the property TNFT changes hands, the beneficial ownership also changes hands. In the event a TNFT is minted into a second product or asset, then the backing treasury for that asset becomes the beneficial owner until the TNFT is removed. # Sales and Management #### Initial Sales After signing a sales memorandum and placing a deposit on the property, Tangible Custody lists each property for sale on Tangible. The sale is open to all users for two weeks, or until all fractions are sold out. During this sale, each user who purchases a fraction of the property will receive an “In Escrow” TNFT, which cannot be transferred, sold, or traded, but represents their share of ownership of the SPV, and identical share of the In Escrow property. Once the initial sale ends, the TNFT will be unlocked, and rent distributions will start within seven business days. Should the property-backed TNFT almost sell out, but not to 100%, the sale may be extended by a limited number of days. Should the property-backed TNFT not sell out by the sale end date, the sale will be canceled, and all initial purchasers will be refunded 100% of their investment, including all fees, within five business days. #### Tokenization Upon listing in the marketplace, all new real estate TNFTs will include a 5% tokenization fee added on top of the house price. This fee will be charged to all buyers and is used to cover legal fees, other costs associated with sourcing and closing properties and miscellaneous protocol overhead. #### Rent Collection and Rental Yield Tangible Custody collects rent from the tenants, and pays the rent to the Tangible DAO, which places the rent in smart contracts that allow all token holders to collect. Rent distributions start within two business days of the initial property sale being completed. Rental yield will be disbursed daily to all TNFT owners, minus the below management fee collected by Tangible Custody. Fractionalized TNFT’s rental yield will be split proportionally between fraction owners. Tangible Custody endeavors to lease all TNFT-backing properties, whenever possible. At initial purchase of a Real Estate TNFT, 2% of the purchase is moved into a vacancy reserve, to support continued rental disbursement during periods without an active lease. Should the reserve capital fall below 2% of the property valuation, a recurring 20% of rental yield will be held back until the vacancy reserve is replenished. Should the reserve become completely drained, rental yield will be paused until the property is again leased. Should a property fail to rent, Tangible Custody may decrease the rent to find a tenant. (Conversely, should market demand grow, Tangible Custody may increase the rent.) Should an owner take possession of and redeem the TNFT, all capital in the vacancy reserve would revert to the owner with the property. #### Management Fee Tangible Custody manages the properties for an annual fee of 2% of the property value. This includes ensuring the property is leased as consistently as possible, informing owners of any repairs required (when relevant), overseeing any repairs required. Tangible Custody will also manage redemption requests, transferring ownership to a named person or new legal entity, for an additional fee. #### Maintenance and Repairs At initial purchase of a Real Estate TNFT, 5% of the purchase is moved into a maintenance reserve. This reserve will be accessed should any repairs or maintenance, including possible major costs both planned and unanticipated, become necessary. (Repairs and maintenance covered by property insurance will not affect the maintenance reserve.) Should the reserve capital fall below 5% of the property valuation, a recurring 20% of rental yield will be held back until the maintenance reserve is replenished. Should the reserve become completely drained, 100% of rental yield will be put towards replenishing the reserve. Invoices and quotes for repairs above $100 will be uploaded to the real estate owner’s portal. Should an owner take possession of and redeem the TNFT, all capital in the maintenance reserve would revert to the owner with the property. #### Insurance All TNFT properties are fully insured. Insurance costs will reduce monthly yield, although the advertised TNFT yields are adjusted to reflect this cost. #### Taxes It is each TNFT-owner’s responsibility to report their yield income to their domestic taxation body or country of residence. # Marked Rates of Return #### Marketed Rates of Return Tangible is marketing various rates of return in an effort to accurately represent the investment opportunity, as well as the expected annual return of USDC to the TNFT holders. Gross Returns are calculated using only the selling price of the house, paired with either an estimate of the capital appreciation, an estimate of annual rental income, or both. Net Returns are calculated using the selling price of the house plus all additional closing costs, fees, and reserve budgets, as detailed in these docs. We’re referring to this total, all-in sales price as the Total Tokenized Selling Price. As a result, Net Returns are lower than Gross Returns. The Total Tokenized Selling Price includes, but is not limited to: Property Cost, the Management Fee, the Vacancy Reserve, the Maintenance Reserve, and all legal costs, insurance, and taxes. Below is a summary of the various rates of return. These figures assume the property is leased, the rent is paid on time, capital appreciation maintains past performance, and maintenance fees are negligible. #### Capital Appreciation Yield estimates include Capital Appreciation, the portion of the investment where the gains in the property’s market price exceed the original investment's purchase price. This figure is an estimate, based on the local average over the last five years. #### **Gross Capital Appreciation:** The average annual capital appreciation, calculated using valuation data from the previous five years. Example using a home value of $57,500 in 2022, and $42,500 in 2018, a five year stretch: ((57,500 - 42,500)/42,500 in 2018)/5 = 7.1% #### **Gross Rental Yield:** The annual rent collected from the tenant, divided by the property cost. Example using an annual rent of $5,820, and a property selling price of $60,625: 5,820/60,625 = 9.6% #### **Expected Total Gross Yield:** The total of the gross capital appreciation and gross rental yield, assuming capital appreciation continues along its five-year historical trend, property is leased, and rent is paid monthly, with no maintenance costs incurred. #### **Net Rental Yield:** The expected amount of cash to be returned to the tokenized real estate holder as a percentage of the real estate value. It’s calculated using the annual rent collected from the tenants, divided by the TNFT or Basket value. Example using an annual rent figure of $5,820, and a total tokenized selling price of $72,061 ($60,625 property selling price + legal costs, fees and reserves of $11,436): 5,820/72,061 = 8.1% #### **Expected Total Annual Net Yield:** This is the expected total return on the buyer’s investment, accounting for the total tokenized selling price, annual collected rent, and expected one-year capital appreciation. Example using a tokenized selling price of $72,061, annual collected rent of $5,820, and expected one-year capital appreciation of $4,280: (5,820 + 4,280)/72,061 = 14% #### # Decentralized Property Values Decentralizing the pricing for the properties in the treasury disconnects Tangible from the asset valuations at the center of the stablecoin. This is a critical step towards protocol transparency, stability and scaling. In a scenario where Tangible Custody is only tokenizing a small portion of the treasury properties, these types of scaling solutions will be critical to Real USD's growth, relability and ongoing success. # Roles and Responsibilities Teams and Systems Property valuations are managed by third parties and decentralized oracles. Updated price oracles allow for collateralization ratios and minting on gains to be in “real time" while enhancing the decentralization of the Tangible ecosystem. The following parties play a critical role in the maintenance and timely updates to Tangible’s real estate values: **Hometrack** Independent property valuations in the UK are provided by Hometrack.com, the largest Real Estate data provider in the UK, who are responsible for valuations on the majority of UK mortgages. Hometrack’s valuations are updated on the third Thursday of every month and are delivered to the node through their API, which Tangible maintains a license on. **MatrixedLink** Develop and maintain the oracle and node which manage the inflow and outflow of pricing data. **Tangible** In circumstances where properties haven’t yet been indexed by the UK land registry and added to Hometrack, Tangible maintains the API which provides Royal Institution of Chartered Surveyors (RICS) accredited valuations to the node. These “paper” valuations are always available in the dropbox folder for the specific property. ### **Infrastructure Pieces** The following are the key technical pieces of the system along with their function. **Node** The node sits central to the source data (via APIs), the oracle and Tangible. The node is the project manager of the operation, pulling in key information from the relevant sources and sending new information out when necessary. All data runs through the node. **Oracle** The oracle is a smart contract with the most recent on-chain valuation data. The information it stores includes fingerprint data (home ID), timestamp on the last update/call to pricing, currency designator, location and the current home price (including one time costs like tokenization and other fees). The oracle manages the updates of its own data, pulling from the node. An oracle wrapper was built which allows the oracle to integrate with our existing infrastructure. **APIs** APIs are the source of external data. In this case, Tangible licenses the Hometrack API which provides updated valuation data to the oracle (via the node) monthly. Tangible manages a secondary API with the remaining property valuations from independent third parties, homes not yet indexed by Hometrack. **Contracts** Oracle Address: TBD Oracle Wrapper: TBD # Workflow The following summarizes the workflow for this integration: 1. The oracle reads the request and retrieves the data from the valuation API in the node, maintained by our partner MatrixedLink 2. The oracle compares the data from the API to the on-chain valuation data 3. If any changes are observed, the node will initiate a creation/update routine and submit the new valuations to the on-chain home values #### Additional notes: * No one can call the node. The request to update the oracle must come from the oracle itself. * When new stock is added to the marketplace, Tangible can update valuations by request, triggering the oracle to pull the data from the node, updating the on-chain valuation in the oracle and in Tangible’s listing. This allows new stock transactions to be processed (sold into the treasury) without a 24-hour delay. * A timestamp is maintained every time the values presented in Tangible’s UI are checked against the value in the oracle. * The oracle is responsible for updating the values of the individual houses, however the total value of the treasury real estate will not update unless triggered by a multisig transaction. This is to prevent any data errors from impacting asset values and ollateralization data. # Property Valuation and Underwriting Disclosure ## About RICS Surveyors RICS stands for the Royal Institution of Chartered Surveyors. It is an independent professional body in the UK that accredits professionals within the land, property, construction, and infrastructure sectors worldwide. A RICS surveyor provides expert advice and guidance on all matters related to property, land, and construction. Their valuations are crucial in the UK Real Estate industry, ensuring property values are assessed with professional accuracy and reliable standards. ## Property Valuation Sources At Tangible, we primarily rely on Home Track Valuation for property assessments. In cases where this valuation is unavailable or deemed inaccurate, we enlist an independent RICS-approved valuer, such as Eddisons, to conduct a valuation. Each property is valued based on individual sales, comparable market evidence, and inspections. ## Our Property Underwriting Process Tangible employs a robust underwriting process to ensure that property valuations and final deals are conducted with the highest standards of accuracy and integrity. Below is an overview of our methodology, demonstrating how we determine the agreed price, incorporate additional costs, and calculate the total property tokenization cost. ### Agreed Price Example deal - Single Home Dwelling - Residential * Address: 18 High Lane, Nottingham NG7 1FL * Home Track: Unavailable * RICS (Eddisons): £5.650M * Agreed price: £5.5M * Our Valuation: £5.643M.This includes a 2.60% markup. Tangible negotiates the final property price, and endeavors for such final price to be below RICS valuation and never exceeds the third-party or Home Track valuation. For this hypothetical property, the agreed final amount of £5.5M is 0.61% less than the RICS valuation. Tangible always aims to achieve: * A minimum Profit Margin of 2% * A Net Rental Yield of at least 8% ### Determining Our Valuation Our Valuation includes a markup ranging from 2% to 15% (this mark up the approx range of the difference between agreed final price and RICS valuation), based on third-party RICS valuations or Home Track figures. If our valuation deviates by more than 0.5% compared to third-party valuations, the deal is voided. ### Calculating Add-on Costs Tangible adds various additional costs to ‘Our Valuation’: * Management fee: 2% of ‘Our Valuation’ * Vacancy reserve: 2% of ‘Our Valuation’ * Maintenance reserve: 5% of ‘Our Valuation’ * Legal closing costs: Typically £1,200 per property, paid at settlement. * Annual Insurance costs: £1000 - £3000 per property. * Stamp Duty Land Tax: Typically, 3% of 'Our Valuation'. Other expenses, such as agent fees (around 2%), are also integrated into the markup, aligning the agreed price with our valuation. ### **Calculating the Total Property Tokenization Cost** The Total Property Tokenization Cost is defined as: * Total Property Tokenization Cost=Our Valuation+All add-on costs Continuing with the previous example, this figure amounts to £6,451,752. This total is then converted at the prevailing GBP/USD exchange rate with an added 2% margin: * GBP/USD Spot rate = 1.22 * Tangible conversion rate = 1.22×(1+0.02)=1.2444 So, £6,451,752 × 1.2444 = USD$8,028,560.19 The 2% margin applied to the exchange rate serves as a financial buffer to protect against currency volatility and potential losses during the conversion process. It also covers the costs associated with converting USD into stablecoins and then into GBP for property settlements. This margin contributed to the stability of our product offering, ensuring that property acquisitions could be completed reliably and predictably regardless of fluctuations in forex markets. ### Sale to the Treasury or Customer When USDR was active, Tangible sold the tokenized property to the Tangible Treasury at the calculated total property tokenization cost, thereby collateralizing USDR. Alternatively, the tokenized property could be sold to buyers on the Tangible Marketplace at the same calculated total property tokenization cost. ## Additional Property-Specific Risks and Housing Market Risks In addition to the standard valuation and underwriting processes, we consider other property-specific risks and housing market risks. These include: * Market Fluctuations: The property market can be volatile, and property values can fluctuate due to changes in economic conditions, interest rates, and market demand. These fluctuations can affect the final sale price and rental yields. * Location-Specific Risks: Properties in different locations may have various risks, such as local economic conditions, employment rates, and infrastructural developments. These factors can significantly impact property values and rental demand. * Regulatory Risks: Changes in local, regional, or national regulations concerning property ownership, rental laws, and taxation can influence property investments' profitability and feasibility. * Environmental Risks: Properties may be subject to environmental risks such as flooding, natural disasters, or pollution. These can affect the property's value and insurability. * Occupancy Risks: The risk of prolonged vacancies can impact rental income and overall returns. The state of the rental market and demand for rental properties in the area plays a crucial role in occupancy rates. We consider such risks when evaluating property investments to ensure a comprehensive understanding of potential impacts on property values and returns. # Gold Tangible Gold bar TNFTs are backed by LBMA-member certified gold bars, supplied by PX Precinox, and made specifically for us featuring the Tangible logo and a unique serial number. While initially the TNFTs will be minted with a stock photo of a gold bar, within five days after purchase, the image will be updated to show a photograph of your actual gold bar with the serial number. **Storage**: Until redemption, Tangible gold bars are secured by the renowned Swiss security firm Protectas, in fully-insured and audited locations in Zurich, Switzerland. These are some of the world’s most trusted vaults. Tangible customers will pay 1% of the gold’s value, on the day of storage purchase, per year of storage.\ \ **Redemption**: We can ship to anywhere in the world, for reasonable rates, although the prices obviously vary depending on destination, number of bottles, and local VAT. Please [contact us](mailto:support@tangible.store) for a custom quote. # Overview Tangible Baskets are permissionless, rebasing ERC-20 tokens—100% backed by tokenized, yield-generating real estate—that distributed yield back to token holders via daily rebase. Baskets price is soft-pegged to the TPV (true property value) of the assets in the pool and will fluctuate based on market demand and the activity of arbitrageurs. With Baskets, anyone, anywhere, at any budget can invest in income-producing real estate with just a few clicks. ## Real Estate Baskets Tangible Baskets are a simpler, safer way to own tokenized real estate, giving owners access to a focused selection of high-yield properties all through one, rebasing token. Baskets remove the risks of single-property exposure while giving holders access to the full range of DeFi composability. Basket tokens are designed to increase returns over time as properties accrue value and cash from rental yield is compounded into new property purchases. ### Valuation The value of each ERC-20 is based on the true value of the real estate assets in the basket, using the True Property Valuation (TPV,) third-party valuations collated and distributed through a [decentralized oracle](/asset-categories/real-estate/decentralized-property-values). The token value is equal to the total TPV of all real estate NFTs in the basket divided by the number of tokens in circulation. Token prices may fluctuate based on demand, but the TPV used in mint/redemptions help ensure token prices will find their correct asset-backed value as market makers can arbitrage the spread. ### Yield As rental yield accrues in the Basket users are distributed additional Basket tokens via rebase to reflect this increase in total vault value. Once enough rental yield has accrued, that cash is converted into a new property for the pool. In the case of wrapped Baskets, the token value goes up to account for the additional yield. When wrapped Baskets are unwrapped, they'll receive a greater number of Basket tokens to account for the incoming yield. ### Mint Real estate Basket tokens are minted with whole Tangible real estate NFTs. Baskets allow any Tangible NFT holders to deposit freely in exchange for basket tokens (as long as the TNFT is compatible). Users will receive ERC-20s equivalent in value to the TNFTs they minted with. A 0.5% mint fee is applied to all Basket mint transactions. ### Redeem At any time, users can burn ERC-20 basket tokens and redeem them for an equivalent value of real estate NFTs. Any accumulated rental yield not yet converted into a new property will remain in the vault. Only one property is available for redemption at a time, with a new property becoming available for claim after the previous property TNFT has been redeemed. Redemption properties are generated at random using Gelato VRF. Redemptions are only available for whole properties, and the value of Basket tokens being redeemed must match the TPV of the full property being redeemed. {% hint style="warning" %} US persons cannot redeem nor take possession of the underlying real estate. {% endhint %} ### Revenue Share 10% of the incoming Baskets rent is distributed to veRWA holders. $RWA is the governance token for re.al, a Arbitrum Orbit L2 that is home to Tangible. All protocols on the chain will receive liquidity incentives as a key benefit to sharing a portion of protocol revenue with the ecosystem.
# Why Tokenized Real Estate? Baskets make it easier than ever for on-chain funds to be diversified into a safe, yield-generating source of value with historic track record of appreciation. With many global fiat currencies seeing a rapid devaluation, assets like real estate can be critical to maintaining wealth. ### Currency Devaluation The past 15 years have seen an unprecedented rise in monetary supply. From [Q1 2008 to Q3 2023](https://fred.stlouisfed.org/series/BOGMBASE), the monetary base has increased by nearly 7x with almost half of that growth occurring in just the past three years. The primary consequence of this extraordinary printing of money has been the debasement of the currency and inflation.
The US dollar has declined in value by sixfold over the past 50 years. If in 1973 we value the dollar at $1, by 2023 the [value has dropped](https://www.officialdata.org/us/inflation/1973?amount=100) by 86%, below $0.14. This decline in buying power has taken place over periods of primarily low inflation, with inflation running at under 4% per year for the past 30 years.
### Preserving Wealth and Value Accrual With few exceptions, the price of real estate appreciates over time. In part, this is easily attributable to the expansion of monetary supply above. The more money in circulation, the more things cost, including real estate. And this ignores the scarcity and value creation of real estate. While not completely insulated from temporary declines in value, real estate has been one of the most dependable asset classes in existence. [The average sales price](https://fred.stlouisfed.org/series/ASPUS#) of a home in the United States has grown from $32,800 in Q1 1973 to $513,400 in Q2 2023. This is a nearly 1600% increase, with growth that has been steady through various periods of economic expansion and contraction.
When the real estate held is yield-generating, it becomes a substantially more powerful asset. Take this example below using the seasonally adjusted [Case-Shiller](https://fred.stlouisfed.org/series/csushpisa) U.S. National Home Price Index. The blue line represents real estate value accrual in the U.S. since 2000. Property values are up 3x in that time. However, when factoring in a 6.5% compounded annual yield on top of the real estate value accrual, the gains are nearly 12x in the same time, on a relatively low-volatility asset. This is the power of Baskets, returning long-term value to holders in safe, permissionless, highly-liquid asset.
As fiat money becomes worth less and less, real estate becomes significantly more valuable, preserving and building wealth for its holders. When significant drawdowns have occurred in real estate, the event takes place over an extended period of time. During the housing market crash of “The Great Recession,” the average price of a single family home dropped by \~20%. However this drawdown occurred over a two year period, from the peak in Q1 2007 to the bottom in Q1 2009. Compared to cryptocurrencies, fiat currencies and most other commodities, real estate is one of the most stable stores of value in existence. ### Market Access and Affordability For many around the world, real estate ownership becomes less and less attainable with each passing year. Market demand, inflation and wage stagnation create a system imbalance where only a small fraction of the population is able to own real estate in many countries. As [household savings](https://fred.stlouisfed.org/series/PSAVERT#) hit their lowest numbers in 15 years while housing prices increase, many do not have the ability to save the required downpayment on a new home.
In the United States, the median price of a single-family house has increased by nearly 40 percent over the last three years. Normal buyers have been almost completely priced out. And the impact of rising rates only exacerbate the affordability crisis. **Easy, democratized entry to the real estate market has never been more necessary.** Tokenized real estate, available to anyone, anywhere with no minimum entry is an important first step to enabling wealth preservation for an entire generation of buyers being left behind by the housing market.
# Design ### Basket.sol The ERC-20 contract that facilitates the transaction of Basket tokens and TangibleNFTs. These can be created by anyone who holds a TangibleNFT. A new basket can be deployed via the Basket Manager. ### BasketManager.sol This is also known as the “basket factory”. This contract tracks all existing baskets and allows anyone who is holding a TangibleNFT (of a supported tnftType) to deploy a new unique basket via \`deployBasket\`. ### BasketsVrfConsumer.sol To facilitate the random redeemables in each basket, we’ve decided to build a single BasketsVrfConsumer contract that handles all entropy requests from all baskets. This contract will keep track of all outstanding vrf requests made and route the proper vrf coordinator callback to the designated basket. ### Beacon Proxy Pattern
The Basket architecture utilizes the [OZ Beacon Proxy pattern](https://docs.openzeppelin.com/contracts/5.x/api/proxy#beacon). This allows us to have multiple deployed proxies that all share a single implementation. There only exists 1 Basket.sol on-chain to act as our implementation contract. The BasketManager would deploy a new BeaconProxy contract when a new basket is created. The BeaconProxy contracts would read from the UpgradeableBeacon when performing any executables. The UpgradeableBeacon would hold the implementation address of the only Basket base contract. In the event the Basket logic needs to be updated, all we’d need to do is update the implementation address on the UpgradeableBeacon.
# Technical
Contracts and Functions
Guides
# Contracts and Functions Baskets are pools of NFTs that allow users to swap their NFTs for ERC-20 tokens. Currently, Tangible Baskets only support real estate NFTs. This allows any Tangible Real Estate NFT holder (TNFT) to deposit their NFT into a basket in exchange for basket tokens, as long as their NFT is compatible. The basket will have a deployer (aka "BasketManager") which allows users to create a unique basket. The BasketManager is the central point of the baskets and keeps an array of all existing baskets. A user can only create a basket if they hold a TNFT of that specific category/subcategory. Baskets allow any Tangible NFT holders to deposit freely in exchange for basket tokens (as long as the TNFT is compatible). A 0.5% mint fee is applied to all Basket mint transactions. Basket tokens can be freely redeemed whole property TNFTs, with one randomly-selected TNFT designated for redemption at a time. ## Basket ### Code [Basket.sol](https://github.com/TangibleTNFT/baskets-foundry/blob/main/src/Basket.sol) ### Create your own See guide on how to [create your own basket.](/baskets/technical/guides#creating-a-basket) ### Read Functions #### **getQuoteIn** {% code overflow="wrap" fullWidth="false" %} ```javascript function getQuoteIn(address _tangibleNFT, uint256 _tokenId) external view returns (uint256 shares); ``` {% endcode %} Returns an amount of ERC-20 tokens you’d receive if the specified token was deposited into the basket. * Does NOT include the amount of basket tokens subtracted for deposit fee. #### **getQuoteOut** {% code overflow="wrap" %} ```javascript function getQuoteOut(address _tangibleNFT, uint256 _tokenId) external view returns (uint256 sharesRequired);// Some code ``` {% endcode %} Returns an amount of ERC-20 tokens required if you were to redeem the specified NFT from the basket. #### **getRentBal** {% code overflow="wrap" %} ```javascript function getRentBal() external view returns (uint256 totalRent); ``` {% endcode %} Returns the unclaimed rent balance of all TNFTs inside the basket + any rent already claimed and sitting within the basket. * Returns an amount in USD (stablecoin) with 18 decimal points #### **getDepositedTnfts** {% code overflow="wrap" %} ```javascript function getDepositedTnfts() external view returns (TokenData[] memory); ``` {% endcode %} Returns the `depositedTnfts` state array. This array contains data for every NFT stored inside the basket. #### **getTnftsSupported** {% code overflow="wrap" %} ```javascript function getTnftsSupported() external view returns (address[] memory); ``` {% endcode %} Returns the `tnftsSupported` state array. This array contains addresses for every TNFT contract address that has NFTs stored in the basket. #### **getTokenIdLibrary** {% code overflow="wrap" %} ```javascript function getTokenIdLibrary(address _tnft) external view returns (uint256[] memory); ``` {% endcode %} Returns the `tokenIdLibrary` mapped array. This array contains tokenIds for each token stored in this contract, given the TNFT contract address. #### **getSupportedFeatures** {% code overflow="wrap" %} ```javascript function getSupportedFeatures() external view returns (uint256[] memory); ``` {% endcode %} Returns the `supportedFeatures` state array. This array contains all features the basket supports and therefore all NFTs must support in order to be compatible with the basket. #### **getSharePrice** {% code overflow="wrap" %} ```javascript function getSharePrice() public view returns (uint256 sharePrice); ``` {% endcode %} Returns the USD value per basket share in 18 decimals. #### **getTotalValueOfBasket** {% code overflow="wrap" %} ```javascript function getTotalValueOfBasket() public view returns (uint256 totalValue); ``` {% endcode %} Returns the total USD value of the basket. * This value is calculated as the total value of all deposited NFTs + accrued rent + unclaimed rent. * The rent value used is only updated post-rebase. #### **isCompatibleTnft** {% code overflow="wrap" %} ```javascript function isCompatibleTnft(address _tangibleNFT, uint256 _tokenId) public view returns (bool); ``` {% endcode %} Returns true if a specified token is compatible with the basket and thus can be deposited into the basket. A token is compatible if and only if: * It is of the same category (or “type”) * It supports all subcategories (aka “features”) as the basket. * It is in the same location as the basket. (i.e. “US” or “UK”) ### Write Functions #### **depositTNFT** {% code overflow="wrap" %} ```javascript function depositTNFT(address _tangibleNFT, uint256 _tokenId) external returns (uint256 basketShare); ``` {% endcode %} This method allows any user with a compatible NFT to deposit their NFT into the basket in exchange for minted basket tokens. * Any unclaimed rent claimable from the rent manager is claimed and transferred to the depositor. * A deposit fee is taken upon every deposit which (by default) is .5% of basket tokens. * The basket tokens (aka “shares”) minted is calculated using the USD value of the NFT deposited. * The token being deposited MUST be approved on the TNFT contract before executing a deposit. #### **batchDepositTNFT** {% code overflow="wrap" %} ```javascript function batchDepositTNFT(address[] memory _tangibleNFTs, uint256[] memory _tokenIds) external returns (uint256[] memory basketShares); ``` {% endcode %} This method allows any user with a 1 or more compatible NFTs to deposit a batch of NFTs into the basket in exchange for minted basket tokens. * Any unclaimed rent claimable from the rent manager is claimed and transferred to the depositor. * A deposit fee is taken upon every deposit which (by default) is .5% of basket tokens. * The basket tokens (aka “shares”) minted is calculated using the USD value of the NFTs deposited taking into account the native share price. * The tokens being deposited MUST be approved on the TNFT contract(s) before executing a batch deposit. #### **redeemTNFT** {% code overflow="wrap" %} ```javascript function redeemTNFT(uint256 _budget, bytes32 _desiredToken) external; ``` {% endcode %} This method is used to redeem an NFT from the basket in exchange for basket tokens. This method will take a budget of basket tokens and your desired token data (NFT contract address + tokenId) and if the budget is sufficient will transfer the NFT stored in `nextToRedeem` to the msg.sender. * The NFT stored in `nextToRedeem` is randomly chosen via VRF. * After a successful execution of this method, a new \*random\* NFT will be chosen. * The basket tokens (aka “shares”) burned are calculated using the USD value of the NFTs deposited taking into account the native share price. #### **rebase** {% code overflow="wrap" %} ```javascript function rebase() public; ``` {% endcode %} This function allows for the Basket token to "rebase" and will update the rebase multiplier (aka “rebaseIndex”) based on the amount of rent accrued by the basket tokens. * As the amount of rent accrued increases, every balance of basket token holders will also increase. * 10% of the incoming rent is distributed to veRWA holders. ## BasketManager ### Code [BasketManager.sol](https://github.com/TangibleTNFT/baskets-foundry/blob/main/src/BasketManager.sol) ### Address `0x5e581ce0472bF528E7F5FCB96138d7759AC2ac3f` ### Read Functions #### **getBasketsArray** {% code overflow="wrap" %} ```javascript function getBasketsArray() external view returns (address[] memory); ``` {% endcode %} Returns an array of basket addresses that have been deployed. #### fetchBasketByHash {% code overflow="wrap" %} ```javascript function fetchBasketByHash(bytes32 _featuresHash) public view returns (address); ``` {% endcode %} Returns the address associated with a features hash. If address(0), hash is not taken. * A hash is consisted of 3 things: * tnftType of basket as uint256 * location ISO code as uint16 * array of features as uint256 #### **createHash** {% code overflow="wrap" %} ```javascript function createHash(uint256 _tnftType, uint16 _location, uint256[] memory _features) public pure returns (bytes32 hashedFeatures); ``` {% endcode %} Takes the 3 arguments that create a unique basket and creates a 32 byte hash. The 3 arguments are mentioned above. ### Write Functions #### **deployBasket** {% code overflow="wrap" %} ```javascript function deployBasket( string memory _name, string memory _symbol, uint256 _tnftType, uint16 _location, uint256[] memory _features, address[] memory _tangibleNFTDeposit, uint256[] memory _tokenIdDeposit ) external returns (IBasket, uint256[] memory basketShares); ``` {% endcode %} This method deploys a new Basket contract. * The combination of `_tnftType`, `_location`, and `_features` MUST be unique. * The `_name` must be unique * The `_symbol` must be unique * 1 or more compatible NFTs must be specified as the initial deposit. * `_features` must be sorted and cannot contain duplicates. This method returns the address of the new basket as well as the array of basket tokens minted to the deployer. ## BasketVrfConsumer ### Code [BasketsVrfConsumer.sol](https://github.com/TangibleTNFT/baskets-foundry/blob/main/src/BasketsVrfConsumer.sol) inherits `GelatoVRFConsumerBaseUpgradeable` ### Address `0x68179D8f2dbd5969F421DfC5f92C40ecDD530c41` ### Read Functions #### **requestTracker** {% code overflow="wrap" %} ```javascript function requestTracker(uint256) public view returns (address); ``` {% endcode %} Returns the address of a basket that made the VRF request, given the requestId. #### **outstandingRequest** ```javascript function outstandingRequest(address) public view returns (uint256); ``` Returns the outstanding requestId for a specified basket’s pending request for entropy, if any. ### Write Functions #### **makeRequestForRandomWords** ```javascript function makeRequestForRandomWords() external onlyBasket returns (uint256 requestId); ``` This method makes a request to Gelato VRF. It will return with a valid requestId provided by Gelato. * Only callable by a basket contract. #### **fulfillRandomWords** {% code overflow="wrap" %} ```javascript function fulfillRandomness(uint256 randomness, bytes calldata dataWithRound) external; ``` {% endcode %} This method is the VRF callback function. Vrf coordinator will respond with our random word by calling this method. * Only callable by the VRF coordinator contract. * Will make an external call to the appropriate basket awaiting entropy. Will be used to generate the next redeemable NFT in that basket. # Guides ### Use the UI To make things easier we’ve built a seamless UI where users can deposit NFTs, redeem from baskets, and create their own baskets seamlessly. This is the recommended approach to performing any and all user interactions. [Access our UI.](https://tangible.store/baskets) ### Depositing When depositing a TangibleNFT (or batch of TangibleNFTs) into a specified basket you first need to call \`approve\` on the corresponding NFT contracts on each NFT being deposited. The approved \`to\` address needs to be the address of the basket you’re wishing to deposit your NFT(s) into. Once you’ve approved the NFT transfer, you’ll need to locate your respective deposit method. Keep in mind the token(s) being deposited must be compatible with the specified basket. You can query whether the NFT is compatible by calling \`isCompatible\` on the chosen basket. #### Single Deposit If you’re only depositing a single TangibleNFT into the basket, you can do-so by executing the \`depositTNFT\` method: {% code overflow="wrap" %} ```javascript function depositTNFT( address _tangibleNFT, uint256 _tokenId ) external returns (uint256 basketShare) { basketShare = _depositTNFT(_tangibleNFT, _tokenId, msg.sender); } ``` {% endcode %} This method will take your specific TangibleNFT and mint you an appropriate amount of ERC-20 basket tokens in accordance with the value of your NFT. Read more about \`depositTNFT\` [here](/baskets/technical#deposittnft). #### Batch Deposit If you wish to deposit multiple TangibleNFTs in exchange for basket tokens, you can do-so by locating and executing the \`batchDepositTNFT\` method: {% code overflow="wrap" %} ```javascript function batchDepositTNFT( address[] memory _tangibleNFTs, uint256[] memory _tokenIds ) external returns (uint256[] memory basketShares) { uint256 length = _tangibleNFTs.length; require(length == _tokenIds.length, "Arrays not same size"); basketShares = new uint256[](length); for (uint256 i; i < length;) { basketShares[i] = _depositTNFT(_tangibleNFTs[i], _tokenIds[i], msg.sender); unchecked { ++i; } } } ``` {% endcode %} This method will sequentially take each NFT specified into it’s custody and mint you an appropriate amount of basket tokens in return. The amount of basket tokens minted is dependent on the USD value of each NFT deposited. Read more about \`batchDepositTNFT\` [here](/baskets/technical#batchdeposittnft). ### Redeeming Redeeming an NFT is not as frictionless as specifying an NFT in the basket and receiving that NFT in exchange for sufficient basket tokens. Redeemable NFTs are generated at random using vrf and can only be generated when the current redeemable is redeemed. You can query the current redeemable by fetching the data stored in \`nextToRedeem\`. This variable will always contain the current redeemable token and will not be reset until this current redeemable is redeemed from the basket. If ‘nextToRedeem’ returns null data (i.e. address(0) and tokenId 0), this means the random redeemable has not yet been generated and is most likely still pending. If you wish to redeem the current redeemable you’ll need to locate and call the \`redeemTNFT\` method: ```javascript function redeemTNFT(uint256 _budget) external { _redeemTNFT(msg.sender, _budget); } ``` There’s a few things that will need to be true for this redeem to successfully execute: * You must have sufficient basket tokens in your EOA. * There mustn’t be an “in flight” request for entropy to vrf. * \`nextToRedeem\` cannot be null. It has to be assigned a valid redeemable NFT. * The \`\_budget\` specified must be sufficient enough to exchange for the redeemable NFT. This method, if executed successfully, will burn the appropriate amount of basket tokens in exchange for the NFT. Read more about \`redeemTNFT\` [here](/baskets/technical#redeemtnft). ### Creating a basket To create a basket, you’ll need to locate the \`deployBasket\` method on the basket manager: ```javascript function deployBasket( string memory _name, string memory _symbol, uint256 _tnftType, address _rentToken, uint16 _location, uint256[] memory _features, address[] memory _tangibleNFTDeposit, uint256[] memory _tokenIdDeposit ) external returns (IBasket, uint256[] memory basketShares); ``` This method will deploy a new basket instance. The initial deposit NFT(s) will be deposited into the new basket and the basket tokens minted for the initial deposit will be minted to the EOA used to execute the new basket deployment. Read more about \`deployBasket\` [here](/baskets/technical#deploybasket). # FAQs #### **Real estate is extremely volatile, are you concerned that the real estate market is going to nuke?** Like any other market, the price of real estate can rise and fall based on a number of factors. However, unlike crypto or equities, the real estate market is significantly less volatile. The drops occur over a much longer timeframe and are generally less substantial in terms of the loss of value. Here are three indicators we can use to project a decline in the housing market based on the last housing market crash:
#### **How will a declining housing market impact Basket yield and collateralization?** A drop in the value of the vault's underlying assets does not automatically mean a loss of yield for holders. Basket yield is derived from rental income, not the valuation of the assets themselves. As such, we expect to continue collecting the projected rent from tenants in managed properties, despite any paper loss on the underlying asset itself. Baskets cannot fall under collateralization. If the price of the underlying real estate declines, the TPV will reflect that and holders may sell until the market price reflects the asset values. #### **Will a declining house market force Basket liquidations?** Basket assets are purchased in cash, not financed, they're completely unleveraged. However, falling real estate prices can result in the liquidation of on-chain leveraged positions using Baskets as collateral. If real estate prices fall, causing Basket tokens to sell-off, lowering their price, this can trigger a liquidation of the on-chain loan if the collateralization ratio isn't maintained. In this situation, we would expect to see a steep decline in the price of Baskets, below the TPV (true property value) as they're force liquidated. Market makers would be able to arbitrage the situation, buying cheap Baskets, redeeming for the underlying assets and minting new Basket tokens at the correct TPV. #### **How does a declining housing market benefit Tangible and Basket holders?** With an expanding market cap, Tangible will have the opportunity to DCA into new property purchases, adding assets to Basket vaults at or close to the bottom of their recent valuation. The more assets that are added towards the bottom, the greater the increase in valuation will be when the market turns around. This is no different to what institutions like Blackstone are doing, preparing $50 billion vehicles to buy up residential property during a potential downturn. #### **What is the selection process for the properties the Basket vaults? Do they all come from Tangible’s marketplace?** Tangible has a team who identify high-yield properties which are added to the marketplace as TNFTs and subsequently minted into Basket tokens. These properties are typically already tenanted with an established high yield. This yield also helps insulate the properties from price volatility as the markets move. The earliest traunch of high-yield assets came from the UK where our real estate team, property management team early realtor relationships were established. That said, we don’t have any geographic restrictions and plan to continue diversifying, adding to our expanding portfolio of US assets. #### **What happens when there are no tenants leasing the property, resulting in zero rental income? How does the ecosystem accommodate such a scenario?** 2% of the property value is held in a vacancy reserve. This supplies yield in the event of a vacancy. Once the property is tenanted again, a percentage of the yield from that location will be used to resupply the reserve. Many of our current properties have tenants on government aid meaning the rental reliability is extremely high, over 99%. # Contracts & Addresses
ContractAddress
UKRE0x835d3e1c0aa079c6164aad21dcb23e60eb71af48
wUKRE0x7dBd14115bAf4240AAb8C4Ef31BF71F76c708420
BasketManager0x5e581ce0472bF528E7F5FCB96138d7759AC2ac3f
BasketVrfConsumer0x68179D8f2dbd5969F421DfC5f92C40ecDD530c41
CurrencyCalculator0xE5bf6fb71DCBBc298C602d92Ce0AE7DF2456266f
# USTB Token USTB is a fully permissionless, cross-chain, rebasing dollar-pegged stablecoin. USTB is a wrapped version of [USDM](https://docs.mountainprotocol.com/reference/usdm-token), with USDM supplying 100% of the backing for USTB. USDM is backed by Mountain Protocol's reserves of short-duration US Treasuries (T-Bills) having an average duration of less than 3 months or less. [Learn more about USDM.](/ustb/backing-asset-usdm) **US Treasuries are considered one of the safest yield-producing, USD-denominated investment options. T-bills guarantee a risk-free yield, backed by the full faith and credit of the U.S. government.** USTB is an ERC20 rebasing token, with a redemption value pegged at 1:1 to USDM, which in turn has a redemption value pegged at 1:1 for primary customers. Like other fiat-backed stablecoins, we expect USTB to trade \~$1 in the secondary market, a function of buy/sell volume, liquidity depth and arbitrage opportunities.
IndicatorDetails
TickerUSTB
Token TypeERC-20
Decimals18
Contract Address0x83feDBc0B85c6e29B589aA6BdefB1Cc581935ECD
Chainsre.al, OP, Base, Eth
## Getting USTB #### Minting USTB is minted on Ethereum in the Tangible app. USDM, purchased on [Curve](https://curve.fi/#/ethereum/swap) (Eth) or minted directly from Mountain Protocol is wrapped into USTB. Minting can only be done on Ethereum. Once minting is complete, USTB can be bridged to any of the supported chains via LayerZero where it can be farmed or sold into liquidity pools. #### Buying Liquidity will be available for USTB on the following chains and exchanges: | Chain | Exchange | | -------- | --------------------------------------- | | re.al | [Pearl](https://www.pearl.exchange/) | | Optimism | [Velodrome](https://velodrome.finance/) | | Base | [Aerodrome](https://aerodrome.finance/) | # USTB Yield ### US Treasury Bills Yield U.S. Treasury bills, commonly known as T-bills, are short-term government securities issued by the U.S. Department of the Treasury. The yield from T-bills comes from the difference between the purchase price and the face value (also known as the par value) of the bill. T-bills are typically sold at a discount to their face value; investors receive the face value upon maturity. The yield, therefore, is the gain realized over the investment period, calculated as a percentage of the initial investment. One of the key features of T-bills is their predictable yield. Since they are issued with fixed terms (commonly 4, 8, 13, 26, or 52 weeks), the return can be calculated with a high degree of accuracy at the time of purchase. This predictability, combined with the safety of the investment, makes T-bills a favored choice for investors seeking a low-risk, short-term investment option. T-bill liquidity – the ease with which they can be bought and sold in the financial markets – adds to their appeal. This liquidity, along with the U.S. government's creditworthiness, contributes to the general perception of T-bills as a virtually risk-free asset. ### USTB Yield USTB holders earn the aforementioned yield accrued by the T-bills that ultimately back it. [Mountain Protocol ](https://docs.mountainprotocol.com/)manages the USDM reserves, USDM backs USTB 1:1. As USDM accrues yield from it's T-bill backing, that yield is passed along to USDM holders as a daily rebase. USTB takes this increase to it's USDM backing and sends it to USTB holders as a daily rebase.
[Read more](/ustb/backing-asset-usdm#rebasing-example) about USDM rebasing and the reward multiplier.
# Backing Asset: USDM USTB is 100% backed by another stablecoin, USDM. {% hint style="warning" %} The following content in this section has been taken directly from the [USDM docs](https://docs.mountainprotocol.com/), with permission from the team.\ \ **Please refer to the Mountain Protocol docs for the latest information.** {% endhint %} ## USDM contract overview USDM is built on top of the OpenZeppelin [ERC20 canonical](https://docs.openzeppelin.com/contracts/4.x/api/token/erc20#IERC20) implementation, adding rebasing dynamics to the contract, following the same "share of total supply" pattern as [Lido's stETH](https://docs.lido.fi/contracts/lido). The rebasing mechanism is implemented via the "shares" concept. Instead of storing a map with account balances, the USDM smartcontract stores which "share" of the total pool is owned by the account. The balance of an account is calculated as follows: ``` balanceOf(account) = shares[account] * rewardMultiplier ``` `shares` - map of account share of the total supply. Every time USDM is minted or burnt, it is converted to shares and added/deducted and assigned to user's balance. `rewardMultiplier` - is the sum of daily *addRewardMultiplier*, accruing daily for users. ### Rebasing example If a user purchased 100 USDM when the *rewardMultiplier* was 1.00, that user would receive 100 shares of USDM. If the average APY for the year stayed constant at 5%, that user would now have 105 USDM. Below is an example of the USDM balances, *shares,* and *rewardMultiplier*:
TimeUSDM (balanceOf)SharesrewardsMultiplier
Day 01001001
Day 3651051001.05
If this user wanted to redeem 100 of the 105 USDM, they could transfer 100 USDM to their Mountain Protocol account, via the Platform. Under the hood, the contract will transfer `100/1.05 = 95.238 shares` In this example, the user will receive $100 for their 100 USDM and keep 5 USDM. ### How the *rewardMultiplier* works The *rewardMultiplier* variable is updated daily, at or around 12pm UTC, by calling the *addRewardMultiplier* function applying the daily yield*,* changing the value of the *rewardMultiplier*. Below is an example of how the *rewardMultiplier* and the *addRewardMultiplier* work together (note that USDM contract runs on an 18-digit standard, but those have been simplified for this example). The *rewardMultiplier* starts at one and is increased by the *addRewardMultiplier* function on a daily basis. The column shows the value of the *rewardMultiplier* sent to the *addRewardMultiplier* function and the resulting ongoing state of *rewardMultiplier.* | Day | rewardMultiplier | addRewardMultiplier | | --- | ---------------- | ------------------- | | 0 | 1 | 0.000080986 | | 1 | 1.000080986 | 0.000080993 | | 2 | 1.000161979 | 0.000081000 | | 3 | 1.000242979 | 0.000081006 | | 4 | 1.000323985 | 0.000081012 | | 5 | 1.000404997 | | | 6 | ... | | ### Other notable function mentions * **transfer**: The transfer function works like any other ERC20. Note that the transferred amount will be USDM, not shares. This will match the user expected behavior, by sending *balanceOf* and not Shares. * **rewardMultiplier**: Allows developers to read the cumulative yield accrued since the beginning of the contract. Note that past does not predict future. The [Secured Overnight Funding Rate](https://www.sofrrate.com/) is usually a better proxy to USDM yield than historic values. * **totalShares**: This function returns the total number of shares in circulation. Note that this number will be different from the total USDM in circulation, as this does not account for the yield component embedded in the *rewardMultiplier*. * **totalSupply**: This function returns the total number of USDM in circulation. *totalSupply* is calculated by applying the *rewardMultiplier* to the *totalShares.* ## Dependencies The USDM contract builds its foundation on top of OpenZeppelin Contracts library, widely used and recognized battle-tested components throughout the Ethereum ecosystem: * AccessControlUpgradeable.sol * PausableUpgradeable.sol * UUPSUpgradeable.sol * CountersUpgradeable.sol * ECDSAUpgradeable.sol * EIP712Upgradeable.sol * IERC20PermitUpgradeable.sol * IERC20MetadataUpgradeable.sol ## Resources Explore the following essential resources to gain a comprehensive understanding of USDM Token and its associated network: * USDM Ethereum Mainnet Token Address: * wUSDM Ethereum Mainnet Token Address: * Open Source Code: [https://github.com/mountainprotocol/](https://github.com/mountainprotocol/tokens) * Bug Bounty Program: * Audit Reports: * Security Center by OpenZeppelin: * Security Policy: * License: * Smart Contract Code Coverage: * Documentation: ## Access control roles Below you will find the access control roles and their corresponding addresses for USDM. Each role is linked to a specific set of permissions that are associated with it. * `MINTER_ROLE`: Grants the ability to mint tokens. > 0x48AEB395FB0E4ff8433e9f2fa6E0579838d33B62 * `BURNER_ROLE`: Grants the ability to burn tokens. > 0x48AEB395FB0E4ff8433e9f2fa6E0579838d33B62 * `BLOCKLIST_ROLE`: Grants the ability to manage the blocklist. > 0xB4d98351418c3d35195406e114E56B068F876c8f * `ORACLE_ROLE`: Grants the ability to update the reward multiplier. > 0xD20D492bC338ab234E6970C4B15178bcD429c01C * `PAUSE_ROLE`: Grants the ability to pause/unpause the contract. > 0x16d72b58B8A0bBCf3A6751920ef127Fe746a3BB0 * `UPGRADE_ROLE`: Grants the ability to upgrade the contract. > Not assigned * `DEFAULT_ADMIN_ROLE`: Grants the ability to grant or revoke roles. > 0x313d5B7EfDcd84e8a52D425282B03860e9354d74 ## wUSDM Acknowledging the complexities of handling rebasing tokens in the DeFi ecosystem, the [wUSDM](https://github.com/mountainprotocol/tokens#wUSDM) contract serves as a wrapped token, simplifying integration while preserving stability. The wUSDM contract is an **ERC-4626** (following the [tokenized vault standard](https://ethereum.org/en/developers/docs/standards/tokens/erc-4626/), leveraging the [OpenZeppelin implementation](https://docs.openzeppelin.com/contracts/4.x/erc4626)), enabling users to deposit USDM in exchange for wUSDM tokens. The USDM tokens are rebasing, whereas the wUSDM tokens are non-rebasing, making wUSDM easier to integrate in DeFi protocols. Rebasing tokens have known integration challenges with protocols that assume constant `balanceOf` for tokens (such as Uniswap, 1Inch and Sushiswap). This can lead to daily rewards being captured by players other than the USDM holders in protocols. The stETH issuer, Lido, has [documented this phenomenon here](https://help.lido.fi/en/articles/5231836-what-is-wrapped-steth-wsteth). To solve this problem and ensure USDM holders have full compatibility with DeFi without giving up their rewards, the Mountain Protocol team has built a wrapper on USDM which is called wUSDM. Such wrapper is very similar to Lido's wstETH, a product that is already familiar to the digital asset ecosystem. # USDM Product Structuring Mountain Protocol Limited (the "Company") is a licensed Digital Asset Business (license #202302512) allowed to conduct the following business activities: * Issuing, selling, and redeeming virtual coins, tokens, or any other form of digital assets. * Providing custodial wallet services. The Company provides its services by directly issuing the USDM token, operating the Mountain Protocol platform, and leveraging multiple service providers directly or on users' behalf. ## Rights conferred by the USDM token The Company will ensure US$ 1 or an equivalent amount of USD-denominated assets will be held in the name of the Company with regulated financial institutions in bankruptcy-remote accounts, segregated from the operating accounts of the Company, held on behalf of, and for the benefit of, Users that request a redemption of USDM ("Redeeming Users"). Every USDM minted and sold by the Company and remaining in circulation, either US$1 or an equivalent amount of USD-denominated assets in such segregated accounts, will be held in the name of the Company in such segregated accounts on behalf of and for the benefit of, Redeeming Users. The Company commits to redeem 1 USDM for US$1 from a Redeeming User, subject to compliance with the Company's policies and procedures and the "Terms of Service" accepted by Users. ## User experience This user experience of USDM will feel familiar to users of other stablecoins such as USDC, USDT, GUSD, or other fiat-backed stablecoins, since they all: * Have Primary users (KYC'd account holders) and Secondary users (pseudonymous users with no direct relationship with the issuer). * Allow primary users to purchase and redeem stablecoins at a 1:1 price via portal or API, used mainly by Exchanges, Arbitrageurs/Market Makers, or large buyers. * Rely on arbitrageurs to maintain secondary market prices at \~$1. * The Token can be used freely in the secondary market, including transfers to other EOAs or Smart Contracts, without any additional approvals. ### User types The Company also recognizes two types of users: primary and secondary users. **Primary users** (or customers) have an approved account with Mountain Protocol, granting them access to the Mountain Protocol platform. The platform allows users to purchase and redeem USDM with USDC (fiat payments coming soon). Accounts will be eligible to incorporate businesses in supported jurisdictions that do not participate in restricted economic activities, pending compliance approval. **Secondary users** (or customers) are those who acquired their USDM via the secondary market, such as a pool in Curve or other DeFi applications, or have been paid in USDM by another USDM holder. Secondary users need to apply for a Mountain Protocol account before they can redeem USDM directly with the Company. Alternatively, users can choose to swap their USDM to other users in the secondary market. # USDM Reserves The purpose of USDM Reserves is to provide strong assurances regarding the solvency of issued USDM, so users can be comfortable that their USDM can always be redeemed at $1. USDM Reserves are held in the name of the Company with regulated financial institutions in bankruptcy-remote accounts, segregated from the Company's operating accounts, held on behalf of, and for the benefit of, Users that request a redemption of USDM. ## Collateral ### Main collateral USDM is collateralized by short-duration US Treasuries (T-Bills) with an average duration of less than 3 months or less. US Treasuries are considered the safest USD-denominated asset. Collateral can be composed by any of the following instruments: * Treasury bills, or treasury notes with near maturity. * Money Market Funds investing in short term US treasuries. * Treasury ETFs. * Reverse Repurchase Agreements (repo's) collateralized with US Treasuries. More information about [USDM Reserves - Investment mandate here](/ustb/backing-asset-usdm/usdm-reserves-investment-mandate). ### Assets in transit A small portion of the USDM Reserves will inevitably be "in transit". Such occurrence happens when users purchase new USDM, as those assets need to be off-ramped and sent to the broker account. Given the 24/7 nature of USDM can result in assets waiting for banks to open for fiat transfers to settle and for markets to open to purchase assets. Assets in transit should generally account for a small single percentage of assets. Notwithstanding, the company goes to a great extent to minimize such non-T-Bill exposure. ### Collateral buffer To protect USDM holders from interest rate risk, USDM Reserves are always over-collateralized. This over-collateralization acts as an [equity buffer](#user-content-fn-1)[^1] to absorb potential variations in the underlying asset values resulting from interest rate increases. The collateral buffer is sized using a worst-case scenario of interest rate hikes. By providing a collateral buffer to support changes in underlying asset values, USDM holders can be ensured that their USDM will be available for redemption at par, even in a rate hike scenario. ## Liquidity To minimize exposure to assets other than US Treasuries, the company does not keep a portion of "USDM Reserves" in the form of USDC for redemption, nor does it keep cash in transactional banks. This way, USDM holders are protected from potential **USDC depegs** and potential **future bank failures**. Instead, the company provides liquidity by securing multiple OTC **USDC-denominated lines of credit,** collateralized by USDM Reserves. Such facility provides "advances" to users in the form of USDC, which are then re-paid by the USDM Reserves when markets open. This setup allows users to be comfortable that during black-swan events, USDM Reserves are always fully backing their USDM. {% hint style="info" %} Note that in rare occurrences, financial partners might pause operations. Mountain Protocol might also pause purchasing and redeeming USDM with affected payment channels, to protect the quality of USDM Reserves. {% endhint %} ## Transparency and proof-of-reserves The company issues monthly reserve attestations by a licensed accounting firm, as a way to provide transparency to users on the existence and composition of "USDM Reserves". Attestations can be found in the [USDM Reserves - Attestations](https://docs.mountainprotocol.com/reference/usdm-reserves-attestations) page. [^1]: Equity buffers were introduced by the Basel accord to ensure banks can absorb losses above the expected loss, mainly to deal correlated losses during a crisis. # USDM Reserves: Attestations Mountain Protocol engages [Nephos Group](https://nephosgroup.co/), an accounting firm from the UK, to issue independent attestation reports. Reports are signed by ACCA registered accountants, licenses can be verified [here](https://www.accaglobal.com/uk/en/member/find-an-accountant/directory-of-member/results.html?isocountry=GB\&FirstName=Jamie\&Surname=Nuttall\&Location=\&inputcountrysuspended=\&orgid=ACCA\&orby=FNA\&ipp=5\&pn=1\&hid=\&requestcount=1). As part of their commitment to enhanced transparency, two different attestations are issued for each month: * **Attestation report**: attests to USDM Reserves balance, USDM issuance and USDM being fully collateralized at a point in time. * **USDM Reserves full transactional audit**: attests that all transactions involving USDM Reserves were done in line with policies and regulations. Given that the "Full transactional Audit" requires a full reconciliation of the month, this report is released a couple days later than the "Attestation" report. Please visit the official docs of Mountain Protocol for the [latest attestation postings.](https://docs.mountainprotocol.com/reference/usdm-reserves-attestations) # USDM Reserves: Investment Mandate **REFERENCE AND ASSET VALUATION CURRENCY**: USD **INVESTMENT DURATION**: 12 months or less **PERMISSABLE INVESTMENTS** * Fixed Income Selection * Fixed or Floating rate bonds denominated in USD * Final maturity limited to 397 days or less * Maintain a dollar-weighted average maturity of 60 days or less and a dollar-weighted average life of 120 days or less * Not acquire any security other than a daily liquid asset unless, immediately following such purchase, at least 10% of its total assets would be invested in daily liquid assets, and the Fund will not acquire any security other than a weekly liquid asset unless, immediately following such purchase, at least 30% of its total assets would be invested in weekly liquid assets * Mutual Funds; Index-tracking securities, including ETFs * Invests at least 99.5% of its total assets in cash, U.S. Treasury bills, notes and other obligations issued or guaranteed as to principal and interest by the U.S. Treasury, and repurchase agreements secured by such obligations or cash. * Repurchase agreements * US Treasury Obligations * US Government risk Money Market Funds and ETFs * Invested in assets with 97% or more in Qualified Interest Income (QII), via RICs to avoid withholding tax for NRAs # Risks USDM was built to be the safest asset in crypto. This page provides transparency on the risks involved and the mitigating strategies Mountain Protocol takes to reduce such risks. This disclosure can help current and prospective USDM holders understand their risk level compared to other on and off-chain alternatives. Users should do their own research when deciding to purchase any digital asset. If you have questions about these risks, please contact us at [contact@mountainprotocol.com](mailto:contact@montainprotocol.com). ## Collateral/solvency ### US debt default USDM Reserves are invested only in short-term (3mo or less) US Treasuries risk. These assets are considered the lowest risk USD-denominated assets. However, these assets rely on the US continuing to service its debt, a systemic risk present in most modern financial instruments. ### Interest rate USDM Reserves are over-collateralized to ensure solvency even in an interest rate scenario. However, interest rates are unpredictable and accelerated interest hikes could reduce the value of the portfolio which, coupled with a bank run, could result in impairment of USDM. Such interest rate hikes would need to be over 200bps in a short period (\~6 weeks). ## Liquidity ### 24/7 redemption availability Mountain Protocol provides 24/7 liquidity to primary customers via a USDC-denominated line of credit. If net withdrawals are higher than the available liquidity, withdrawal times will default to [T+2](https://www.investor.gov/introduction-investing/investing-basics/glossary/settling-securities-transactions-t2) business days, in line with Traditional Financial markets. There is no limit to the amount of funds that can be withdrawn on a T+2 business day timeline. ### Financial partner uptime Mountain Protocol is built on top of enterprise-grade partners, providing Service Level Agreements (SLA) of 99%+. However, the uptime of services of such partners is not guaranteed. Mountain Protocol reserves the right to delay liquidity in the rare occurrences when partners' services are interrupted. ### Counterparty risk Mountain Protocol is built with minimal counterparty risk, leveraging regulated financial partners whenever possible. Main counterparties include: * Custodians * Brokers * Banks * Onramps (e.g. Coinbase Prime) In the rare cases where Mountain Protocol determines that counterparties are facing potential risks, measures may be applied to mitigate placing USDM Reserves at risk. These measures might include the temporary pausing of purchase and redemption of USDM. ## Market ### Secondary market pricing Due to the permissionless nature of USDM as an ERC20 token, trading venues will open for USDM against other digital assets and/or fiat. The pricing of USDM in these venues might differ from $1. Secondary market pricing for USDM might vary due to lack of liquidity, failure of arbitrageurs or market makers working in such pools, technological risks, and oracle manipulations or other types of attacks. The Company is not liable for losses related to secondary market pricing risks. ## Technology Mountain Protocol's technology was designed to minimize the surface area for attacks. In the front, the smart contract is a simple ERC20, audited, and battle-tested contract. In the back, Mountain Protocol leverages banking-grade technology, protected from external access, making it hard for attackers to penetrate. ### Smart contract The USDM smart contract, described in the [USDM Token](/ustb/backing-asset-usdm) section, is a modified version of the battle-tested ERC20 canonical implementation to enable rebasing and has been audited by [Open Zeppelin](https://www.openzeppelin.com/), a leading audit firm. However, no software product is ever risk-free. The USDM smart contract is public; more information [can be found here](/ustb/backing-asset-usdm). The Company suggests that users conduct their own research before purchasing any digital assets, including USDM. ## Management and Directors At Mountain Protocol, we acknowledge that centralized protocols require higher trust assumptions than those necessary for decentralized protocols, especially for Management and Directors of the Company. The Company implements several strategies to mitigate the risks arising from centralization, including: * Regulatory oversight by the Bermuda Monetary Authority. * A bankruptcy-remote "USDM Reserve" setup. * Proof of reserves and monthly attestations. * Requiring an external signer to sign large transactions and changes in Transaction Approval Policy (TAP), which protects users from collusion from executives or directors. * Delegation of management of "USDM Reserves" to a licensed Investment Manager. * Whitelisting bank accounts where "USDM Reserves" can be transferred to. * Public disclosure of Directors and Management identities. Users should conduct their own research before engaging with any digital asset, including USDM. If you have more questions during your process, reach out to and talk with their team about the product setup and specific concerns. If you have suggestions on how to further mitigate USDM risks or any other aspect of the management of USDM in general, please contact them at . # Security Resources Mountain Protocol is built to be safe. As such, only tried and tested standards are used, including the ERC20 standard and rebasing, as well as known digital asset management solutions, including Fireblocks, Safe multisigs and OpenZeppelin Defender. They also partner with security leading firm, OpenZeppelin ## Security resources * Security center (by OpenZeppelin): * Smart contract security audit (by OpenZeppelin): [Github](https://github.com/mountainprotocol/audits/blob/main/OpenZeppelin%20Mountain%20Protocol%20USDM%20-%20Audit%20Report%20Jun%202023.pdf) * Bug bounty (by Immunefi): [Immunefi bug bounty](https://immunefi.com/bounty/mountainprotocol/) ## Reporting security incidents Mountain Protocol is an open source project. If you have discovered a potential security issue or vulnerability in our smart contract, we greatly appreciate your help in disclosing it to them in a responsible manner. Please send a detailed description of the issue to their dedicated email address: . The report should include the steps to reproduce, potential impact, and any other relevant information. # U.S. Restrictions/Terms & Conditions ## U.S. Restrictions Mountain Protocol's products, including the USDM token, the platform or any other services, are not available to U.S. Persons. There is no certainty of the standing of digital assets in the U.S. For that reason, the Company has taken the conservative approach of complying with Reg S. This means that: * USDM cannot be purchased by US Persons. * Mountain Protocol will not do any marketing to US Persons. * Our main website ([www.mountainprotocol.com](http://www.mountainprotocol.com)) is not accessible from the U.S. If you have any questions about U.S. restrictions or believe that the U.S. restrictions do not apply to you, via a valid exception, please contact us at ## Terms & Conditions ## 1. Introduction 1. By clicking "Accept" on the website when presented with these Terms and/or by using our products and services and/or by holding USDM, you are agreeing to these Terms and Conditions ("Terms") that govern the relationship between you and Mountain Protocol Limited ("Mountain Protocol" or "we"), the issuer of the USDM (as defined below) and the operator of the Platform (as defined below). 2. Please read these Terms carefully before accessing or using our products and services or holding USDM. 3. Mountain Protocol is a Bermuda company limited by shares with registration number 202302512. Mountain Protocol's registered office is at Rosebank Centre, 5th Floor, 11 Bermudiana Road, Pembroke HM 08, Bermuda. 4. Mountain Protocol is regulated and licensed by the Bermuda Monetary Authority to conduct digital asset business activities in and from with Bermuda (as set out herein) under and in accordance with the Digital Asset Business Act 2018 (as amended) of Bermuda and related regulations, which can be found at . Mountain Protocol holds a Class M license to (a) issue, sell or redeem virtual coins, tokens or any other form of digital asset and (d) to provide custodial wallet services. 5. By registering for an account, accessing or using the Platform, or purchasing, holding, or using USDM, you acknowledge that you have read, understood, and agreed to be bound by these Terms. If you do not agree with these Terms, you must not use the Platform or USDM. 6. These Terms may be updated, amended, varied or modified by Mountain Protocol from time to time. We will notify you of any significant update, amendment, variation or modification to these Terms by posting a notice on our website or through other appropriate means. In the event of a material update, amendment, variation or modification to these Terms, we will give you 30 days' notice in advance by posting a notice on the Platform or through other appropriate means. By clicking "Accept" on the Platform when presented with the Terms updated, amended, varied or modified in accordance with this paragraph or your continued use of the Platform or USDM after any such changes constitutes your acceptance of the updated, amended, varied or modified Terms. If you do not agree to any update, amendment, variation or modification to the Terms, you must stop using the Platform and USDM immediately. 7. We may in our sole discretion make any non-material update, amendment, variation or modification to these Terms, including, to the fullest extent permitted by applicable law, any amendment, change, variation or modification to these Terms that does not impact your use of the USDM, the Platform and our products and services. Any such update, amendment, variation or modification will become effective immediately upon our giving notice through the Platform or through other appropriate means. 8. We may make an update, amendment, variation or modification to these terms without prior advance notice to you in the event that it is required, as determined by us in our sole discretion, for reasons of security, legality or regulatory compliance, including but not limited to for reasons of compliance with any law, regulation, order from a court of competent jurisdiction or direction from our regulator. Such changes will become immediately effective and we will endeavor to notify you through the Platform or through other appropriate means as soon as possible thereafter. 9. We may update and change the Platform from time to time to reflect changes to our products and services, our user's needs and our business priorities. We will try to give you reasonable notice of any material changes. If you have any questions or concerns about these Terms or our products services, please contact us at . ## 2. Definitions 1. "Platform” is the portal accessible through our website that allows users to purchase and redeem USDM, as well as the API version with the same functionality. 2. "Primary Users" are persons who have registered for an account, are accessing or using the Platform, or are purchasing, holding, or using USDM and which have direct access to purchase and redeem USDM from Mountain Protocol. These users have access to the Platform, in the form of web access or API access, to purchase and redeem USDM. 3. "Secondary Users" are holders of USDM that do not have access to purchase or redeem USDM directly with Mountain Protocol until they open and are approved for a Mountain Protocol account. 4. "USDM" is a digital asset (being a rebasing ERC20 token), issued by Mountain Protocol that operates natively in the ethereum blockchain (other blockchains may be added in the future, with due notice to users). USDM accrues rewards for holders of USDM in accordance with these Terms. USDM can be redeemed at a fixed $1 value by any user, as long as an account is opened and the transaction falls into the Terms and Conditions laid herein. 5. "USDM Reserves" are an equivalent amount of U.S. Dollar-denominated assets held by Mountain Protocol on behalf of, and for the benefit of, eligible users backing the USDM which are managed by a 3rd party Investment Manager in conjunction with a regulated broker and custodian. Such reserves are composed mostly by short term US treasuries and in smaller portions in the form of deposits in regulated banks and other low risk stablecoins that Mountain Protocol accepts as a means to purchase USDM (currently only USDC is accepted). Under no circumstance are USDM Reserves commingled with Mountain Protocol operational assets. 6. "user" or "you" are Primary Users and/or Secondary Users as the context requires. 7. "U.S. Person" means any of the following: 1. A U.S. Citizen or U.S. Resident, which includes: 1. U.S. citizens; 2. U.S. lawful permanent residents; 3. Individuals who meet the “substantial presence” test described in section 7701(b)(3) of the U.S. Internal Revenue Code of 1986 (as amended); 4. Protected individuals under section 1324b(a)(3) of the U.S. Immigration and Nationality Act; or 5. Individuals who hold a passport issued by the United States Government; 2. A corporation, partnership, or other entity established or organized in or under the laws of the United States; 3. Any estate of a decedent who was a citizen or a resident of the United States; 4. Any trust if: 1. A court within the United States is able to exercise primary supervision over the administration of the trust, and 2. One or more United States Persons have the authority to control all substantial decisions of the trust; 5. Any Person organized or incorporated outside the United States and its territories or insular possessions in which any of the foregoing, whether singularly or in the aggregate, directly or indirectly: 1. Holds a 50 percent or greater equity interest by votes or value; 2. Holds a majority of seats or memberships on the board of directors of the entity; or 3. Authorizes, establishes, directs, or otherwise controls the actions, policies, personnel decisions, or day-to-day operations of the Person. ## 3. Account Registration 3.1 Eligibility To be eligible to open an account with Mountain Protocol and use our services, including the USDM token, you must meet the following criteria: * Supported Jurisdictions: Both your institution and the ultimate beneficial owners must be located in one or more of the jurisdictions supported by Mountain Protocol. A list of supported jurisdictions can be found on our website or obtained by contacting our support team (). * Restricted jurisdictions: Abkhazia, Afghanistan, Angola, Belarus, Burundi, Central African Republic, Congo, Cuba, Ethiopia, Guinea-Bissau, Iran, Iraq, Ivory Coast (Cote D’Ivoire), Lebanon, Liberia, Libya, Mali, Burma (Myanmar), Nagorno-Karabakh, Nicaragua, North Korea, Northern Cyprus, Russia, Sahrawi Arab Democratic Republic, Somalia, Somaliland, South Ossetia, South Sudan, Sudan, Syria, Ukraine, United States and Venezuela, Yemen, Zimbabwe. * Institutional Accounts Only: Only institutions are eligible to create an account with Mountain Protocol. Individual accounts are not supported. * Institution Existence: Your institution must be a legally established and recognized entity in one of the supported jurisdictions. * Authorized Representative: The representative opening the account on behalf of the institution must have the legal authority to act on behalf of the institution and bind it to these Terms. * No Previous Suspension: The institution or its representative must not have had a previous account with Mountain Protocol that was suspended or terminated for any reason. If you would like to reactivate a suspended account, get in touch with the support team. Reactivations are subject to company review. * Age requirement: The representative opening the account must be at least 18 years of age. * No existing sanctions: Neither the institution nor its representative must appear on any eligible sanctions lists, as determined by Mountain Protocol. * Legal Use Only: The institution and its representative/s agree that the Mountain Protocol account and USDM token will not be used for any illegal activity, including but not limited to, illegal gambling, money laundering, fraud, blackmail, extortion, ransoming data, terrorism financing, other violent activities, or any prohibited market practices. * Restrictions for U.S. Persons: Mountain Protocol restricts access to and usage of its Services, including but not limited to the USDM token, by U.S. Persons. By using the Services, you represent and warrant that you are not a U.S. Person, as defined in our Terms and Conditions.
Mountain Protocol reserves the right to monitor and investigate any transactions or activities involving USDM tokens to ensure compliance with this eligibility restriction. In the event that Mountain Protocol determines, in its sole discretion, that a user is a U.S. Person or has knowingly facilitated the sale or transfer of USDM tokens to a U.S. Person, Mountain Protocol may take appropriate action, including but not limited to address blocking, account suspension or termination, or other actions that the company sees fit. All accounts are subject to review and approval by Mountain Protocol. We reserve the right to deny, suspend, or terminate an account if we determine that an institution or its representative does not meet the eligibility criteria outlined above or for any other reason at our sole discretion. 3.2 Restricted Locations, Access and Services * You may not use the products and services if you are located in, or a citizen or resident of any state, country, territory or other jurisdiction where your use of the products and services would be illegal or otherwise violate any applicable law or regulation. * You may not use the products and services if you are located in, or a citizen or resident of, any state, country, territory or other jurisdiction where we have determined, at our discretion, to prohibit use of the products and services. * Products and services offered by us are only available to users in countries where they are permitted to be offered. * We may implement controls to restrict access to the products and services from any jurisdiction prohibited pursuant to these Terms, including automatically blocking a user from accessing or viewing such products and services. * If you are a user in a jurisdiction referenced in these Terms, you accept and agree that you shall not attempt to access or otherwise engage in any products and services that have been restricted in accordance with these Terms. A breach of this restriction constitutes a breach of these Terms and we may at our sole discretion terminate your account in accordance with these Terms. 3.3. Account Information: Upon registering for an account with Mountain Protocol, the institution and its representative will be required to provide accurate, complete, and up-to-date information. This information may include, but is not limited to, the institution's name, address, contact details, tax identification number, incorporation documents, and information about the authorized representative, such as their name, title, and contact information. The institution and its representative agree to promptly update any account information if there are changes or if Mountain Protocol requests it. 3.4. Account Security: The institution and its representative are responsible for maintaining the confidentiality of their account credentials, including their username and password. They must take reasonable steps to protect the security of their account and prevent unauthorized access or use. This includes, but is not limited to, using strong and unique passwords, enabling two-factor authentication (2FA), and securing the devices used to access the account. The institution and its representative agree to notify Mountain Protocol immediately of any unauthorized access or use of their account, or any other security breach they become aware of. Mountain Protocol will not be liable for any loss or damage resulting from the institution's or representative's failure to comply with these account security requirements. ## 4. Privacy Policy 4.1 Overview: Mountain Protocol is committed to protecting the privacy and security of your personal and institutional information. Our Privacy Policy explains how we collect, use, store, and disclose your information when you access or use the Platform or the USDM token. By agreeing to these Terms, you also agree to the terms of our Privacy Policy, which is incorporated herein by reference. 4.2. Information Collection: When you register for an account, access, or use our services, we may collect various types of information, including personal information, institutional information, and transactional information. This may include, but is not limited to, your name, contact details, identification information, information about your institution, and details about your transactions on the Platform. 4.3. Information Use: We use your information to provide, maintain, and improve our services, to communicate with you, to comply with legal and regulatory requirements, and for other purposes as described in our Privacy Policy. 4.4. Information Sharing: We may share your information with third parties in certain circumstances, such as vendors who help us provide our services, when required by law, to protect our rights or the rights of others, or with your consent. We may also share your information with our service providers, who are required to protect your information in accordance with our Privacy Policy. 4.5. Data Security: We take reasonable measures to protect your information from unauthorized access, use, or disclosure. This includes implementing technical, administrative, and physical security measures designed to safeguard your information. 4.6. Data Retention: We retain your information for as long as necessary to fulfill the purposes for which it was collected, to comply with legal and regulatory requirements, and to resolve disputes and enforce our agreements. 4.7. Your Rights: You have certain rights regarding your personal information, subject to applicable law. These may include the right to access, update, correct, or delete your information, as well as the right to object to, restrict, or withdraw your consent for certain processing activities. To exercise your rights or to learn more about our Privacy Policy, please contact us at . 4.8. International Transfers: Your information may be transferred to, stored, and processed in countries other than your own, where data protection laws may differ. By using our services, you consent to the transfer of your information to countries outside of your jurisdiction. 4.9. Changes to Privacy Policy: We may update our Privacy Policy from time to time. We will notify you of any significant changes by posting a notice on our website or through other appropriate means. Your continued use of our services after any such changes constitutes your acceptance of the updated Privacy Policy. If you do not agree to any changes in the Privacy Policy, you must stop using our services. ## 5. Services 1. USDM: Mountain Protocol issues the USDM, which is a digital asset designed to facilitate transactions within the blockchain ecosystem. Users can purchase, hold, and redeem USDM on the Platform. Primary users can redeem USDM at a $1 price in The Platform. 2. USDM Rewards: The reward rate set for USDM (as may be changed from time to time by Mountain Protocol at its sole discretion) will be set out on the Platform. The reward increases the number of USDM in the wallet in which it is held. The USDM smart contract rebases daily, tallying user balances using the concept of “shares” and the formula below: 1. *balanceOf(account) = shares\[account] \* rewardsMultiplier* \ “rewardsMultiplier” is a global variable controlled by an oracle solely managed by Mountain Protocol.\ \ You will not be entitled to receive any interest or other fees on any USDM held in your account other than the rewards as set out in this paragraph 5.2., even if we receive interest or other amounts from any third parties on the USDM Reserves held. You acknowledge and agree that interest or other amounts earned in respect of the USDM Reserves that do not form part of the rewards as set out in this paragraph 5.2 is paid to Mountain Protocol as a management fee and no USDM holder has an entitlement to such amounts.
3. Bridged USDM: Mountain Protocol does not offer bridged USDM on other blockchains. Users will be informed when new blockchain or bridge support are added. 4. Custody services: Mountain Protocol provides access to hosted digital asset wallet(s) ("Hosted Wallet"). Your Hosted Wallet allows you to store, track, transfer, and manage your balances of USDM. We store the private keys of said wallets, which are used to process transactions, using industry-standard security procedures and controls in a combination of online and offline storage. Based on our use of our security controls, it may be necessary for us to retrieve private keys or related information from offline storage in order to facilitate certain transactions in accordance with your instructions, and you acknowledge that this may delay the initiation or crediting of such transactions. You own the digital assets held in your Hosted Wallet. As long as you custody your digital assets which are supported by the Platform ("Supported Digital Assets") in a Hosted Wallet with Mountain Protocol, we maintain control over the private keys associated with the blockchain addresses holding your Supported Digital Assets. While you may generally withdraw your Supported Digital Assets by sending it to an external blockchain address at any time, your ability to do so is subject to outages and downtime of the Mountain Protocol website and our policies. When using the Platform, you will have access to an account containing information regarding your balances, type and amount of your Supported Digital Assets in your Hosted Wallet, individual transactions, and fees.\ \ Title to all Supported Digital Assets in your Hosted Wallet shall at all times remain with you and shall not transfer to Mountain Protocol. All interests in digital assets held in your Hosted Wallet are held for you, are not property of Mountain Protocol and are not subject to the claims of the Mountain Protocol’s creditors. As owner of the Supported Digital Assets in your Hosted Wallet, you shall bear all risk of loss of such supported digital assets. Mountain Protocol shall have no liability for Supported Digital asset fluctuations or loss. \ \ None of the Supported Digital Assets in your Hosted Wallet are the property of, or shall or may be loaned to, Mountain Protocol. Mountain Protocol does not represent or treat digital assets in your Hosted Wallet as belonging to Mountain Protocol. Mountain Protocol may not grant any security interest in the Supported Digital Assets held in your Hosted Wallet. Except as required by law, or except as provided herein, Mountain Protocol will not sell, transfer, loan, hypothecate, or otherwise alienate Supported Digital Assets in your Hosted Wallet unless instructed by you.
5. Digital asset transfers: When you or a third party sends Supported Digital Assets to a Hosted Wallet from an external wallet not hosted on Mountain Protocol ("Inbound Transfers"), the person initiating the transfer is solely responsible for executing the transaction properly, which may include, among other things, payment of sufficient network fees for the transaction to be successful. Failure to pay such fees may cause an Inbound Transfer to remain in a pending state outside of Mountain Protocol's control, and we are not responsible for delays or losses incurred as a result of an error in the initiation of the transaction and have no obligation to assist in the remediation of such transactions. By initiating an Inbound Transfer, you attest that you are transacting in a Supported Digital Assets which conforms to the particular Hosted Wallet into which funds are directed. For example, if you select an Ethereum wallet address to receive funds, you attest that you are initiating an Inbound Transfer of Ethereum alone, and not any other digital asset. Mountain Protocol incurs no obligation whatsoever with regard to unsupported digital assets sent to an incompatible Hosted Wallet. Erroneously transmitted funds will be lost.\ \ You agree, represent, and warrant that all Inbound Transfers are not the direct or indirect proceeds of any criminal or fraudulent activity. You further agree, represent, and warrant with respect to any digital asset you sell, transfer or deliver to Mountain Protocol, (i) you are the lawful owner of such digital asset with good and marketable title thereto, and you have the absolute right to sell, assign, convey, transfer and deliver such digital asset. Such digital asset is free and clear of any and all security interests, liens, pledges, claims (pending or threatened), charges, escrows, encumbrances or similar rights, (ii) you are the lawful owner of each wallet address you provide to us and have good title thereto and (iii) each of your wallets is owned and operated solely for your benefit, and no person, other than you, has any right, title or interest in any wallet. \ We reserve the right to investigate the source of any funds in your account and determine, in our sole discretion, how to handle their disposition. Such reviews may delay the settlement of these funds. \ Following our review of any funds in question and the circumstances by which you received them, we may determine that you are not the owner of such funds. If such a determination is made, we reserve the right to dispose of these funds in accordance with applicable laws and regulations and in our sole discretion, which may include, but is not limited to, returning them to the destination of their origin. \ When you send Supported Digital Assets from your Hosted Wallet to an external wallet ("Outbound Transfers" and together with Inbound Transfers, "Digital Asset Transfers"), such transfers are executed at your instruction by Mountain Protocol. You should verify all transaction information prior to submitting instructions to us. Mountain Protocol shall bear no liability or responsibility in the event you enter an incorrect blockchain destination address. We do not guarantee the identity or value received by a recipient of an Outbound Transfer. \ Digital Currency Transfers cannot be reversed once they have been broadcast to the relevant blockchain, although they may be in a pending state and designated accordingly, while the transaction is processed by network operators. Mountain Protocol does not control any blockchain or digital asset network and makes no guarantees that a Digital Asset Transfer will be confirmed by a digital asset network. Mountain Protocol may refuse to process or cancel any pending Outbound Transfers as required by law or any court or other authority to which Mountain Protocol is subject in any jurisdiction. Additionally, Mountain Protocol may require you to wait some amount of time after completion of a Digital Asset Transfer before permitting you to use further products and services of Mountain Protocol and/or before permitting you to engage in transactions beyond certain volume limits.
6. By using any of the products and services provided by Mountain Protocol, you acknowledge and agree that the availability and functionality of these products and services may be subject to limitations, delays, and other issues inherent in the use of blockchain technology and digital assets. Mountain Protocol is not responsible for any losses or damages arising from such issues, and your use of our products and services is at your own risk.
7. Limitations: By using the services provided by Mountain Protocol, you acknowledge and agree that the availability and functionality of these products and services may be subject to limitations, delays, and other issues inherent in the use of blockchain technology, digital assets, compliance and speed of services of vendors, especially financial partners. Mountain Protocol is not responsible for any losses or damages arising from such issues, and your use of our products and services is at your own risk.
8. Availability: Mountain Protocol strives to provide consistent and reliable access to our products and services. However, we cannot guarantee that our products and services will be available at all times, without interruption, or that they will always function as intended. By using our products and services, you acknowledge and accept the risk of potential service disruptions or unavailability. ## 6. Fees and Charges 6.1. Fee Structure: Mountain Protocol provides transparency in its fee structure by ensuring that all fees, including those charged by the company and any applicable partners, are netted from the yield quoted to users. By using our services, you acknowledge and agree that the yield displayed to you already accounts for these fees, providing a clear understanding of the net yield you can expect. 6.2. Fee Changes: Mountain Protocol reserves the right to change fees on a daily basis, in line with market conditions. 6.3. Third-Party Fees: Mountain Protocol pass-through transactional fees to users. This can include transfer fees related to blockchain transactions, as well as banking fees. ## 7. Transactions 1. Transaction Limits: To ensure the security and compliance of our platform, Mountain Protocol imposes basic weekly transaction limits for users.\ Higher transaction limits can be requested by submitting an application through the platform. Please note that any increase in transaction limit is subject to further due diligence by Mountain Protocol. We reserve the right to approve or deny such requests at our sole discretion, based on the results of our assessment and compliance with our internal policies and applicable regulations\ By using our services, you acknowledge and agree to abide by these limitations. 2. Transaction Processing: Mountain Protocol is committed to providing efficient transaction processing for our users. However, processing times may vary depending on various factors, including the blockchain network's congestion, transaction complexity, and required confirmation or settlement. While we strive to facilitate transactions promptly, we cannot guarantee immediate processing or completion of transactions. 3. Withdrawal and Liquidity SLA: Mountain Protocol keeps liquidity to facilitate 24/7 redemptions. This liquidity is sized to support business as usual redemptions. In case of large redemption flows, users would default to a T+2 business day withdrawal SLA. This SLA does not supersede delays required for Mountain Protocol to comply with regulatory or compliance obligations and also depends on the uptime of our financial partners. 4. Transaction Errors: Users are responsible for ensuring the accuracy of transaction details, including recipient addresses, amounts, and digital asset types. Mountain Protocol is not liable for any losses or damages resulting from user errors or inaccurate transaction information. Once a transaction has been initiated, it cannot be reversed or modified. Please verify all transaction details before submitting them for processing. 5. Compliance Checks: Mountain Protocol monitors and may review transactions to ensure compliance with our policies, as well as applicable laws and regulations. We reserve the right to delay, suspend, or cancel transactions that we suspect may involve illegal or fraudulent activities or that violate our terms and conditions. In such cases, we may be required to report the transaction to the relevant authorities. ## 8. Account Termination and Suspension 1. Termination by User: Users may terminate their account with Mountain Protocol at any time by following the account closure process provided on the platform. Upon termination, it is the user's responsibility to withdraw or transfer all digital assets from their own wallets. 2. Suspension by Mountain Protocol: We reserve the right to suspend or restrict access to your account and our services at any time, without notice, for reasons including but not limited to suspected violation of our terms and conditions, non-compliance with applicable laws and regulations, or involvement in any illegal or fraudulent activities. During the suspension period, you may not be able to access or manage your account or digital assets. 3. Termination by Mountain Protocol: Mountain Protocol reserves the right to terminate your account and access to our services at our sole discretion. Reasons for termination may include, but are not limited to, breach of our terms and conditions, failure to comply with applicable laws and regulations, or involvement in any illegal or fraudulent activities. 4. Consequences of Termination: Upon account termination, whether by the user or Mountain Protocol, users will lose access to all services and features provided by the platform. Mountain Protocol will not be liable for any losses, damages, or consequences resulting from account termination. ## 9. User Responsibilities 1. Compliance with local laws: Users are responsible for complying with all local laws in their specific jurisdiction, including financial, tax, and other legal obligations related to your use of our services. 2. Prohibited Activities: Users of Mountain Protocol's services are prohibited from engaging in any illegal, fraudulent, or malicious activities. This includes, but is not limited to, money laundering, financing of terrorism, illegal gambling, fraud, blackmail, extortion, ransomware, or any other activities that violate applicable laws, regulations, or our terms and conditions. Mountain Protocol reserves the right to monitor and investigate any suspicious activities and may take appropriate action, including account suspension or termination, and reporting to the relevant authorities. 3. User Responsibility for Account Security: Users are solely responsible for maintaining the security and confidentiality of their account information, including login credentials and any other sensitive information related to their Mountain Protocol account. You must promptly notify us of any unauthorized access to or use of your account or any other security breach. Mountain Protocol is not responsible for any losses or damages resulting from unauthorized access to your account or the use of our services by unauthorized parties. 4. 9.4. Reliance: You will be bound by, and hereby authorise us, directly or through a third party, to accept and rely on, any agreements, instructions, orders, authorisations and any other actions made, provided or taken by anyone who has accessed or used your account regardless of whether the access is authorised or unauthorised. ## 10. Security and Fraud Prevention 1. Security: Mountain Protocol uses industry-standard measures to protect your accounts and assets, including encryption, multi-factor authentication, and regular security audits, to protect your account and digital assets from unauthorized access, loss, or theft. 2. Fraud Prevention: Mountain Protocol actively monitors for signs of fraud and suspicious activities on our platform. We may implement various tools and processes to detect and prevent fraudulent activities, such as transaction monitoring, user behavior analysis, and identity verification. If we detect any suspicious activities or transactions, we may take appropriate action, including freezing the affected accounts, blocking transactions, or reporting the incident to the relevant authorities. ## 11. Risk factors 1. USDM Reserves risk: USDM Reserves are held in short term US Treasuries. Defaults on these instruments could lead to loss of collateral value. USDM Reserves held to our account for and on behalf of eligible users equal in value to the USDM held by users, may be lost or inaccessible to users due to various factors including, without limitation, discovery of wrongful conduct, market manipulation, physical or digital attacks, insolvency of Mountain Protocol and other factors outside of our control. 2. Blockchain-Related risk: The use of blockchain technology entails inherent risks, such as irreversible transactions, which may lead to permanent loss of assets in cases of errors or unauthorized transactions. 3. Fork risk: The permissionless nature of blockchains means that existing supported blockchains may fork. Mountain Protocol will inform users in advance in case new forks are supported, so that users can track the blockchains where ownership of assets continues to be supported for redemptions. 4. Smart Contract Risk: Smart contracts used on the Platform may contain vulnerabilities or unforeseen issues that could result in asset loss or disruptions to our products and services. Mountain Protocol has taken steps to mitigate such risks, including audits and monitoring, but no smart contract is risk free. 5. Liquidity and Listing risk: Market fluctuations, changes in listing status, or other factors may impact the liquidity and value of digital assets held in your account. 6. Legal risk: Changes in laws or regulations in your jurisdiction or internationally may impact your ability to use our products and services or the legal status of your digital assets. 7. Regulatory Changes: Any digital asset such as USDM may decrease in value or lose all of its value due to legislative or regulatory activity, or other governmental or regulatory action. Governmental and regulatory authority regulation of digital assets is unsettled and rapidly evolving. 8. Exchange risk: The loss or compromise of digital asset exchanges may result in the loss of your assets or disruptions to our products and services. 9. Trading Risk: Trading digital assets involves inherent risks, including market volatility, and may result in the loss of some or all of your assets. 10. Banking Risk: Changes in banking relationships or regulations may impact the availability of our products and services, including the ability to deposit or withdraw fiat currency. 11. No Deposit Insurance: Mountain Protocol does not provide deposit insurance, and digital assets held in your account are not insured against loss. 12. Insurance: We have not obtained insurance coverage in respect of our business operations. 13. Third Party Platform risk: USDM’s permissionless feature enables 3rd party platforms to integrate without Mountain Protocol's consent. This may lead users to interacting with malicious contracts or contracts with security features that have not been assessed by Mountain Protocol. Mountain Protocol is not liable for losses related to the usage of 3rd party platforms. 14. Blocked addresses, Blacklisting and Forfeited funds: Mountain Protocol reserves the right to block certain USDM addresses and freeze associated USDM (temporarily or permanently) if it determines, in its sole discretion, that they may be associated with illegal activity or activity violating these Terms. If you send or receive USDM to/from a Blocked or Blacklisted Address, Mountain Protocol may freeze the USDM and take steps to suspend or terminate your USDM Account. In certain cases, Mountain Protocol may report suspected illegal activity to law enforcement agencies, which could result in the forfeiture of rights associated with your USDM, including redemption for USD. Mountain Protocol may also be required to freeze USDM or surrender associated USD if mandated by a legal order from a valid government authority. 15. Termination Risk: You may be unable to withdraw or transfer USDM prior to our termination of any products and services or your access to your account, in each case, resulting in the loss of any USDM remaining in your Hosted Wallet. 16. Inaccuracies Risk: Any USDM may be lost if sent to the wrong address (for example, but without limitation, if the address is improperly formatted contains errors, or is intended to be used for a different type of digital asset). Any USDM may be lost if sent to a correct address but the recipient does not act as intended. Your transaction request or email to us or via the Platform may be lost, intercepted or altered during transmission. 17. There are various risks you assume in relying on any text, graphics, user interfaces, information, data, tools, products, services, and other content (collectively, the "Content") provided by Mountain Protocol via the Platform, social media accounts of Mountain Protocol or its officers ("Social Media Accounts"), or any other means, including: 1. All Content provided by us is for informational purposes only. Nothing on the Platform or Social Media Accounts is a recommendation that you purchase, sell, withdraw, or hold USDM or that you pursue any strategy in respect of USDM. Nothing on the Platform or Social Media Accounts is intended to be, and you should not consider any of the Content provided to be, trading, investment, accounting, tax, legal, or professional advice of any kind. 2. The Content speaks only as of the date indicated, if any. 3. We make reasonable efforts to provide accurate Content, but at times we may not promptly update or correct the Platform or Social Media Accounts, even if we are aware it is inaccurate, outdated, or otherwise inappropriate. 4. We may change all or any portion of the Platform at any time without notice to you. 5. You agree that we are not liable for any action you take or decision you make in reliance on any Content. 6. All or any portion of the Platform may not be available and may not function properly at any time. 7. We make reasonable efforts and employ appropriate safeguards to avoid technological problems, but at any time, the Platform may have and may cause technological problems such as viruses and other damaging computer programming routines or engines. 8. We are not liable for any problems or issues affecting the software, networks, protocols, systems, and other technology including, any blockchain which has not been created by or for us (“Third-Party Technology”) and used to create, issue, transfer, cancel, use or transact in USDM. 9. We take reasonable security precautions when using the Internet, telephone, or other means to transport data or other communications, but disclaim liability for any interception of data or communications. 10. We are not liable for damage or injury caused by the performance or failure of performance of all or any portion of the Site or App. 11. We are not liable for any defects, delays, or errors in or resulting from your use of the Platform. ## 12. Prohibited transactions 12.1 In connection with your holding or use of USDM, you agree not to engage in the following activities: * Violate any applicable law, statute, ordinance, or regulation. * Intentionally defraud Mountain Protocol or other users. * Provide false, inaccurate, or misleading information. * Participate in any transaction involving the proceeds of illegal activity. * Knowingly sell or transfer USDM to US persons, breaching the terms and conditions. 12.2 Using USDM for transactions related to the following is prohibited, and Mountain Protocol reserves the right to monitor and, if appropriate, block or otherwise prevent transactions that relate to: * Restricted Persons and US persons, as defined in the Terms and Conditions. * Weapons, controlled substances, gambling activities, adult content and pornography, or money-laundering/terrorist financing. * Ponzi schemes, pyramid schemes, or multi-level marketing programs. * Goods or services that infringe on copyright, trademark, or proprietary rights. * Credit repair services or other services that may present consumer protection risks. * Court-ordered payments, structured settlements, tax payments, or tax settlements. * Unlicensed money transmitter activity, layaway systems, or annuities. * Cash intensive businesses * Counterfeit goods or fraudulent activities, such as wash trading or market manipulation. * Purchasing goods from "Darknet" markets or any other service or website that acts as a marketplace for illegal goods. 12.3. If Mountain Protocol learns you are engaging in any Prohibited Transactions, it will be considered a violation of the Terms and may result in the suspension or termination of your account, potentially leading to the forfeiture of any USD funds otherwise eligible for redemption. The company may also be required by law to inform authorities about such transactions and follow court orders regarding information and assets held in the account. ## 13. Insufficient Funds 13.1. If a payment made to tokenize USD for USDM is reversed after the tokenization is completed, Mountain Protocol reserves the right to: (i) retroactively cancel the tokenization and deduct the USDM from your account, (ii) deduct such amounts from future USDM issuances or receipts, (iii) suspend your account until resolved, and (iv) pursue legal action or any other means of recovery available. You grant Mountain Protocol the right to block transactions involving USDM from your account and set off any fees or amounts owed against funds held on your behalf. 13.2. In case Mountain Protocol engages a third party for recovery of funds owed by you, you will be responsible for any fees or expenses incurred, including collection fees, legal fees, or convenience fees charged by third parties. You agree that communication regarding funds owed or a delinquent account will be made by email or phone, either by Mountain Protocol or a third party acting on its behalf. Note that engaging third parties for debt recovery may negatively impact your credit. ## 14. Third-Party Services and Links 14.1. Use of Third-Party Services: Mountain Protocol's platform may integrate with or provide access to various third-party services, tools, or platforms to enhance the user experience and provide additional functionality. By using these third-party services, you agree to their respective terms and conditions, privacy policies, and any other applicable agreements. 14.2. No Endorsement: The integration or provision of access to third-party services does not constitute an endorsement, guarantee, or recommendation by Mountain Protocol. We are not responsible for the content, accuracy, reliability, or performance of these third-party services. 14.3. Risks and Liability: You acknowledge that the use of third-party services may involve risks, including security, data privacy, or other risks, and that Mountain Protocol shall not be liable for any losses, damages, or other consequences arising from your use of such services. 14.4. Third-Party Links: Our platform or communications may contain links to external websites or resources operated by third parties. These links are provided for your convenience and reference only, and Mountain Protocol is not responsible for the content, accuracy, or security of these external websites. Accessing and using these external websites is at your own risk, and Mountain Protocol shall not be liable for any losses or damages resulting from your use of these websites. ## 15. No investment advice 15.1. Please note that Mountain Protocol does not provide any investment advice or recommendations regarding the purchase, sale, or holding of USDM or any other digital assets. 15.2. All decisions to buy, sell, or hold digital assets are solely the responsibility of the user. Users should conduct their own research, seek professional advice, and carefully consider the risks associated with digital asset transactions before making any decisions. ## 16. Representations and Warranties By using Mountain Protocol's services, you represent and warrant the following: 16.1. Legal Capacity: You have the legal capacity and authority to enter into and be bound by these Terms and Conditions, and if you are representing an institution, you have the authority to bind the institution to these Terms and Conditions. 16.2. Compliance with Laws: You will comply with all applicable laws, regulations, and rules in your jurisdiction, including those related to financial transactions, taxes, and anti-money laundering. 16.3. Accurate Information: All information you provide to Mountain Protocol, including your registration and account information, is true, accurate, and complete, and you will promptly update any changes to this information. 16.4. No Conflicts: Your use of Mountain Protocol's services does not conflict with or violate any agreements, contracts, or obligations you have with any third parties. 16.5. No Illegal Activities: You will not use Mountain Protocol's services for any illegal or unauthorized activities, including, but not limited to, money laundering, terrorism financing, or other criminal activities. 16.6. No Infringement: You will not infringe upon any intellectual property rights, privacy rights, or other rights of Mountain Protocol or any third party in connection with your use of our services. 16.7. No Misrepresentation: You will not impersonate any person or entity, or falsely state or otherwise misrepresent your affiliation with any person or entity, in connection with your use of Mountain Protocol's services. By using our services, you acknowledge that Mountain Protocol relies on these representations and warranties in providing our services to you, and that any breach of these representations and warranties may result in account suspension, termination, or other consequences as determined by Mountain Protocol at our sole discretion. ## 17. Disclaimer of Warranties, Limitation of Liability, and Indemnification 17.1. Disclaimer of Warranties: Mountain Protocol's services are provided on an "as is" and "as available" basis, without any warranties or representations, either express or implied, including but not limited to warranties of merchantability, fitness for a particular purpose, title, or non-infringement. Mountain Protocol does not warrant that our services will be uninterrupted, timely, secure, error-free, or free from viruses, bugs, or other harmful components. Your use of our services is at your own risk and discretion. 17.2. Limitation of Liability: To the fullest extent permitted by applicable law, Mountain Protocol and its affiliates, directors, officers, employees, agents, and licensors shall not be liable for any direct, indirect, incidental, special, consequential, or exemplary damages, including but not limited to damages for loss of profits, goodwill, use, data, or other intangible losses, resulting from your use of our services, even if Mountain Protocol has been advised of the possibility of such damages. 17.3. Indemnification: You agree to indemnify, defend, and hold harmless Mountain Protocol, its affiliates, directors, officers, employees, agents, and licensors from and against any and all claims, liabilities, damages, losses, or expenses, including reasonable attorneys' fees and costs, arising out of or in any way connected with your access to or use of our services, your violation of these Terms and Conditions, or your infringement of any intellectual property or other rights of Mountain Protocol or any third party. By using Mountain Protocol's services, you acknowledge and agree to the disclaimers, limitations of liability, and indemnification provisions set forth in this chapter, and that they apply to the fullest extent permitted by applicable law. ## 18. Governing Law and Jurisdiction 18.1. These Terms and Conditions shall be governed by and construed in accordance with the laws of Bermuda, without regard to its conflict of laws principles. You agree to submit to the exclusive jurisdiction of the courts of Bermuda for the resolution of any disputes or claims arising out of or in connection with these Terms and Conditions or your use of Mountain Protocol's services. 18.2. Mountain Protocol is committed to complying with all relevant laws and regulations, including those pertaining to anti-money laundering (AML) and counter-terrorism financing (CTF). Our compliance efforts encompass guidelines and sanctions from various authorities, such as the Bermuda Monetary Authority (BMA), the US Treasury Department, the Office of Foreign Assets Control (OFAC), Her Majesty's Treasury (HM) List, CFSP (EU) Sanctions, the Financial Crimes Enforcement Network (FinCEN), the United Nations Security Council, the Financial Intelligence Agency (FIA), international regulators, and other applicable AML, anti-corruption, and economic sanctions laws. We have designed our policies and procedures to ensure adherence to these legal frameworks, maintaining the highest levels of transparency, security, and integrity. Users are also required to abide by these legal requirements and collaborate with Mountain Protocol in upholding a compliant and secure platform. ## 19. Dispute Resolution 19.1. Informal Resolution: If any dispute arises between you and Mountain Protocol in connection with these Terms and Conditions or your use of our services, both parties shall first attempt to resolve the dispute informally through good faith negotiations. 19.2. Arbitration: In the event that the parties cannot resolve the dispute informally, the dispute shall be settled by binding arbitration in accordance with the rules of the arbitration body selected by Mountain Protocol. The arbitration proceedings shall take place in Bermuda, and the language of the arbitration shall be English. 19.3. Class Action Waiver: You agree that any dispute resolution proceedings, including arbitration, will be conducted only on an individual basis and not in a class, consolidated, or representative action. You hereby waive any right to participate in any class action or class-wide arbitration against Mountain Protocol related to any claim or dispute. ## 20. Proprietary Rights #### Ownership of Services As between you and us, the products and services, the Platform and all technology, content, data and other materials used, displayed or provided or received by you in connection with the products and services and the Platform (collectively, the “MP Materials”) together with all intellectual property rights in any of the foregoing are owned by us. #### Limitations 1. You may only use the MP Materials solely as authorised by us in connection with your use of the products and services for as long as we permit you to continue to access the products and services. 2. Without limiting the foregoing, you will not: * Resell, lease, lend, share, distribute or otherwise permit any third party to use the products and services, the Platform or MP Materials or use the the products and services, the Platform or MP Materials in any service bureau environment; * modify or create derivative works of the products and services, the Platform and MP Materials, or any portion thereof or any data or information received by you in connection therewith; * frame, display or incorporate the products and services, the Platform or MP Materials in any website or any other work of authorship; * decompile, disassemble, reverse engineer or attempt to discover the source code of the products and services, the Platform or MP Materials; * use the products and services, the Platform or MP Materials to design, develop or create any competing product or service; or * otherwise use the products and services, the Platform or MP Materials for any commercial or non-commercial purpose other than their intended purposes determined at our discretion. 3. "Mountain Protocol", "MP” and any product or service names, logos, and other marks used on the Platform or in the MP Materials, or otherwise in connection with the products and services, are trademarks and service marks owned by us or our licensors, as applicable. You may not copy, imitate or use them without our prior written consent. #### Feedback 1. You hereby assign to us all right, title and interest to any feedback, suggestions, ideas, or other information or materials regarding Mountain Protocol or the products and services that you provide, whether by email, posting through the products and services or otherwise (“Feedback”) together with all associated intellectual property rights. 2. We will own all Feedback. 3. You will not be entitled to, and hereby waive any claim for, acknowledgment or compensation based on any Feedback or any modifications made based on any Feedback. #### User Content 1. You hereby grant a royalty-free, fully paid-up, sublicensable, transferable, perpetual, irrevocable, non-exclusive, worldwide license to use, copy, modify, create derivative works of, display, perform, publish and distribute, in any form, medium or manner, any text, information, data, materials, images, or other content you provide to us using the products and services or submit or post to the Platform and that is not Feedback owned by us (the “User Content”) to Mountain Protocol. 2. You represent and warrant that: * you own the User Content or have the right to grant the rights and licenses in these Terms; and * the User Content, and use of the User Content by us as licensed herein, does not and will not violate, misappropriate or infringe on the rights of any third party. 3. At our sole discretion, we may remove any User Content from the Platform for any reason. ## 21. Miscellaneous 1. Entire Agreement: These Terms and Conditions, along with any additional terms and policies referenced herein, constitute the entire agreement between you and Mountain Protocol with respect to your use of our services and supersede any prior agreements or understandings between the parties. 2. Severability: If any provision of these Terms and Conditions is found to be invalid or unenforceable by a court of competent jurisdiction, the remaining provisions shall remain in full force and effect, and the invalid or unenforceable provision shall be deemed modified to the minimum extent necessary to make it valid and enforceable. 3. Waiver: No waiver by Mountain Protocol of any breach or default under these Terms and Conditions shall be deemed a waiver of any subsequent breach or default. 4. Assignment: You may not assign or transfer any rights or obligations under these Terms and Conditions without the prior written consent of Mountain Protocol. Mountain Protocol may freely assign or transfer its rights and obligations under these Terms and Conditions. 5. Force Majeure: Mountain Protocol shall not be liable for any failure or delay in performance due to circumstances beyond its reasonable control, including but not limited to acts of God, natural disasters, war, terrorism, labor disputes, or governmental actions. 6. Notices: All notices or other communications required or permitted under these Terms and Conditions shall be in writing and shall be deemed given when delivered personally, sent by email, or mailed by certified or registered mail, postage prepaid, to the respective parties at the addresses provided during registration or as otherwise specified by the parties in writing. 7. Potential Conflicts of Interest: You acknowledge and agree that we and our affiliates, shareholders, founders, principals, directors, officers, employees, and representatives or their respective affiliates (collectively, “Related Persons”) may directly or indirectly use the products and services or engage in transactions involving USDM for ourselves and themselves. You acknowledge and agree that we and Related Persons may have potential conflicts of interest. To the extent permitted by law, you hereby waive any claim against us or Related Parties alleging breach of fiduciary duties, conflict of interest, or other similar cause of action, relating to, in connection with, or arising out of our and/or any Related Parties directly or indirectly using the Services or engaging in transactions involving USDM. 8. Changes to Products and Services: We may and at any time, modify or discontinue, temporarily or permanently, all or any portion of any products and services, at our discretion and without liability to you, with or without prior notice. 9. Any provision of these Terms that expressly or by implication is intended to come into or continue in force on or after termination of products or services to a user shall remain in full force and effect and will service any termination of your access to products and services. ## 22. Electronic Notices #### Consent to Electronic Delivery 1. You consent to receive all communications, agreements, documents, receipts, notices, and disclosures (collectively, “Communications”) that we provide in connection with these Terms, your account or any products and services, including updates we make to these Terms electronically. 2. You agree that these Communications may be provided to you by us posting them via the Platform, by emailing them to you at the email address you provide, and/or by sending an SMS or text message to a mobile phone number that you provide. Your carrier's normal, messaging, data, and other rates and fees may apply to any mobile Communications. 3. You should maintain copies of electronic Communications by printing a paper copy or saving an electronic copy. 4. You may also contact us to request additional electronic copies of Communications by sending an email to . #### Withdrawal of Consent 1. You may withdraw your consent to receive electronic Communications by sending a withdrawal notice to us to . 2. In such a case, you agree to be informed via the postings on the Platform and by reading the most up-to-date documentation available on the Platform. All of your transactions and balances can be reviewed in the Platform. 3. Under no circumstances will we provide paper copies of documents nor mail any documentation to you. If you decline or withdraw consent to receive electronic Communications, we may suspend or terminate your use of the products and services. #### Updating Contact Information 1. It is your responsibility to keep your email address, mobile phone number and street address on file with us up to date. 2. If we send you an electronic Communication but you do not receive it because your email address or mobile phone number on file is incorrect, out of date, blocked by your service provider, or you are otherwise unable to receive electronic Communications, we will be deemed to have provided the Communication to you. 3. You can update your email address, mobile phone number or street address at any time following the procedure for updating your profile on the Platform. We may require you to provide certain identity verification information in order to effectuate updates of your email address, mobile phone number or street address. 4. If your email address or mobile phone number becomes invalid such that electronic Communications sent to you by us are returned, we may deem your account to be inactive, and you may not be able to use our products and services until we receive a valid, working email address or mobile phone number from you. ## 23. Contact Information If you have any questions or concerns regarding these Terms and Conditions, or if you require any assistance or support related to our services, please feel free to contact us at . Our team is available to address your inquiries and provide guidance as needed. Your feedback and satisfaction are important to us, and we look forward to serving you.