Product guide · lifecycle
How it works
Each index is defined by a set of assets and a backing amount for each asset, called its units. The vault is designed to hold at least those amounts for every share in circulation. The rules below describe the intended contract behavior; Ethereum V2 contracts have not been deployed yet.
To mint, a user supplies the required amount of every asset in the index. The vault then issues shares against the deposited basket. Deposit amounts round up so the vault receives enough backing. A mint fee, if enabled, is capped by the contract and deducted from the shares issued rather than from the basket.
- The planned design has a fixed supply ceiling and an active supply cap that an authorized guardian can lower.
- Minting may be paused during an emergency. A mint pause does not disable redemption.
A holder can burn index shares to receive every asset in the basket in a single transaction. Amounts round down to avoid paying out more than the vault holds.
- The planned contract design does not give an administrator or rebalancing agent a switch to pause or restrict redemption.
- Redemption is designed to work without a price oracle or swap router.
- The basket is redeemed as a whole; partial asset withdrawals are not part of the described flow.
Underlying asset limitation
If automated portfolio management is enabled, an offchain strategy may propose swaps to move the basket toward target weights. The vault contract is intended to enforce limits on every rebalance:
| Control | Intended contract rule |
|---|---|
| Asset list | Trades are limited to the assets configured for the index. |
| Slippage limit | A rebalance cannot exceed the configured loss tolerance. |
| Turnover limit | The value traded in one rebalance is capped. |
| Cooldown | A minimum interval separates rebalances. |
| Backing update | The vault recalculates backing units from balances after a successful rebalance. |
The deployed contracts and their verified source code will determine the final behavior. Users should review those details before interacting with the Ethereum release.