Reserves

Index tokens are backed by the assets they represent. For index tokens with custody on a centralized exchange, 102% backing is provided. For index tokens comprised of other index tokens, the backing is curated by the smart contract and handled in a fully decentralized manner. The reserves of custodial accounts are continuously disclosed in real-time through a dashboard on our website.

Furthermore, our smart contract framework utilizes the off-chain decentralized oracle network offered by Chainlink. This network provides an independent confirmation of the reserves supporting the index.

At the start of each month, during the rebalance and re-weighting process, there may be a brief moment when the accounts appear to have insufficient collateral. This is a regular occurrence, as the index modifies its methodology, requiring assets to be moved in and out of the vaults.