NAV-Based Creation

NAV-Based Redemption

• Order Initiation: Investor contacts AP to create tokens.
• Buy CEF Shares: AP buys CEF shares from the market.
• Deposit Shares: AP deposits CEF shares into smart contract.
• Mint Tokens: Smart contract mints tokens equivalent to shares.
• Distribute Tokens: AP distributes tokens to investors.

Direct transfer

• Order Initiation: Investor contacts AP to redeem tokens.
• Token Transfer: Investor transfers tokens to AP.
• Token Burning: AP sends tokens to smart contract.
• Asset Release: Smart contract releases underlying assets to AP.
• Distribution of Assets: AP distributes assets to investor or sells them.

v2

• Order Initiation: XFT submits a redemption order.
• Return Tokens: XFT returns tokenized shares.
• Burn Tokens: Tokens are burned.
• Deliver Assets: Fund delivers underlying assets to XFT.

By tokenizing REIT shares, we enable direct redemption of tokens for the underlying real estate assets. This allows investors to acquire specific properties within the REIT. The REIT handles the property ownership transfer upon redemption.

• Identify Property: Alice selects a property in the REIT.
• Check NAV and Token Price: Verify NAV and token market price.
• Purchase Tokens: Buy tokens equal to the property’s value.
• Redemption Request: Request redemption through the smart contract.
• Smart Contract Execution: Verify tokens and property value, process redemption.
• Transfer Property: Legally transfer property to Alice, burn tokens.

CEF Premium to NAV

• AP buys underlying shares from Exchange.
• AP converts underlying shares to tokens via the fund's smart contract.
• AP sells tokens on the secondary market for a profit.

CEF Discount to NAV

• AP buys tokens from the secondary market.
• AP redeems tokens for underlying shares via the fund's smart contract.
• AP sells underlying shares on the Exchange for a profit.