# vyUSD

**Issuer / Operator:** YieldFi\
**Governing law:** British Virgin Islands law\
**Document hierarchy:** These Token Terms supplement and form part of the Product Documentation. Capitalised terms not defined here have the meanings in the General Terms.

### 0) Series Snapshot

* **Series ID / Ticker:** vyUSD
* **Product type:** Market Neutral
* **Series objective:** Deploy Series Assets into market-neutral, delta-neutral positions (e.g., private LP deals, hedged carry, basis, and funding-rate spreads across whitelisted DeFi protocols and/or hedged venues) to target yield primarily from LP, leverage looping and fees while seeking to minimise directional exposure to the underlying asset price.
* **Settlement currency:** USDC
* **Deposit asset(s):** USDC / USDT
* **Target redemption SLA:** T+2
* **Fees:** 
  * **Management fee:** 2.00% p.a.
  * **Performance fee:** 0.00%
  * **Mint fee:** none
  * **Redemption fee:** none (other than **network gas** fees
* **Transferability:** Fully transferable
* **Leverage permitted:** Yes
* **Jurisdiction / eligibility:** See Eligibility Criteria Section.

***

### 1) Token Character and Series-Limited Structure

1.1 **Token character.** Tokens are blockchain-based contractual certificates evidencing Series-limited rights under the Product Documentation. Tokens are not equity and confer no governance rights in the Issuer.

1.2 **Series-limited, limited recourse.** Any payment/redemption amount in respect of this Series is payable solely from **Series Assets** after application of the **Series Waterfall**, subject to Applicable Law (including any non-excludable law).

1.3 **No ownership of assets.** Tokenholders do not own Series Assets or any Underlying; they hold only contractual rights as described in the Product Documentation.

***

### 2) Eligibility, Access and Transfer Controls

2.1 **Investor eligibility.** Tokens may be minted, held, redeemed, or transferred only by persons meeting:\
(a) **KYC/AML / Greenlisting** requirements (if applicable); and\
(b) **jurisdictional/eligibility restrictions**: see eligibility criteria section.

2.2 **Transfer restrictions.**

* **Transfer status:** Fully transferrable

2.3 **Sanctions & screening.** Wallet screening may be applied at mint, transfer (if enabled), and redemption.

***

### 3) Supported Network, Token Contract, and Admin Controls

3.1 **Network(s).** EVM chains.

3.2 **Token contract address(es).** See Smart Contract Addresses

3.3 **Admin / upgrade controls.** Upgradeability, pausing, and emergency controls (if any) are described in product docs, and are subject to the General Terms (smart contract administration / material adverse change notice).

***

### 4) Series Wallets / Accounts (Segregation Disclosure)

4.1 **Deposit routing requirement.** Deposits sent to non-designated addresses/accounts may be irrecoverable and may not be credited.

4.2 **Series segregation.** Series Assets are intended to be held and tracked separately from other Series and from Operational Assets, as further described in Schedule 2.

***

### 5) Activities

5.1 **Operator (Issuer).** The Issuer operates the Series, maintains the token contract(s), sets and administers Token Terms, and manages service provider relationships.

5.2 **Service providers (if applicable).**

* **MPC / custody:** ForDeFi
* **Exchanges / prime broker:** N/A
* **Oracles / pricing:** Chainlink etc
* **Audit / security:** See Audits section

***

### 6) Deposits and Minting

6.1 **Deposit window.** Deposits accepted: 24/7

6.2 **Minimum / maximum.**

* **Min deposit:** n/a
* **Max deposit per address:** n/a
* **Max Series capacity (soft/hard):** n/a

6.3 **Mint price / issuance.** Tokens are minted at:

* **Issue price basis:** NAV-based
* **Mint formula:**\
  **Tokens minted = (Net deposit amount in Settlement Currency) / (Token NAV per Token)**\
  where “Net deposit amount” is after applicable mint fees (if any) and properly attributable costs.

6.4 **Mint fees.** None.

6.5 **Failed or reversed deposits.** Handling for banking rejects, chain reorgs, stablecoin blacklisting, or compliance blocks: See product docs.

***

### 7) NAV, Valuation Methodology, and Pricing

7.1 **NAV definition.** “Token NAV per Token” means:\
\&#xNAN;**(Series Assets – Series Liabilities) / Tokens outstanding**, determined as of the valuation time.

7.2 **Valuation frequency.** Minimum twice per week.

7.3 **Valuation sources.**

* On-chain assets: Chainlink or equivalent asset oracle
* CEX positions: n/a
* Off-chain assets: n/a
* FX (if relevant): n/a

7.4 **Market disruption fallback.** If standard sources are unavailable, Issuer uses a reasonable fallback consistent with market practice and the General Terms, including execution-based realisation values.

7.5 **Publication.** NAV is published via update to the vault NAV value.

***

### 8) Redemptions and Settlement

8.1 **Redemption method.** Redemption is initiated via:

* Onchain redemption request

8.2 **Redemption windows & SLAs.**

* **Cutoff:** n/a
* **Processing target:** T+2

Delays may occur due to Market Disruption, illiquidity, compliance, or operational constraints.

8.3 **Redemption pricing.**

* **Redemption price basis:** min of NAV at {redemption request, redemption processing}
* **Redemption Amount = Tokens redeemed × Redemption NAV per Token − fees − properly attributable costs**

8.4 **Redemption fees.** 0% \[except gas fees].

8.5 **Settlement mechanics.** Paid in:

* **Stablecoin:** USDC to wallet provided by Tokenholder; or
* **Fiat:** bank transfer to verified account;\
  Subject to compliance verification and sanctions screening.

8.6 **In-kind redemption (optional).** Optional

8.7 **Redemption source and limited recourse.** Redemptions are funded solely from Series Assets after applying the Series Waterfall.

***

### 9) Fees, Expenses, and Series Waterfall

9.1 **Fee schedule.**

* **Management fee:** 2% per annum
* **Performance fee:** 0% of net profits with high-water mark model, crystallised at NAV distribution.
* **Other fees:** gas fees at processing redemptions.

9.2 **Pass-through expenses.** Series pays properly attributable third-party costs: custody/MPC, exchange fees, prime broker fees, gas, oracle/data, audit/security allocated to the Series (if any), banking fees, legal/admin costs allocated to the Series.

9.3 **Series Waterfall.** Unless otherwise specified:

1. Series costs/expenses;
2. fees;
3. Tokenholder redemptions/payments.

***

### 10) Risk Limits and Portfolio Constraints

10.1 **Exposure constraints.**

* Directional exposure: <1% delta
* Leverage cap: n/a
* Single counterparty concentration: n/a
* Single protocol concentration: n/a
* Stablecoin concentration: n/a
* Duration cap (if fixed income): n/a
* Borrowing permitted: Yes.

10.2 **Collateral and margin.**

* Margin buffers: n/a
* Liquidation policies: n/a
* Rebalancing frequency: n/a

10.3 **Prohibited activities.** unwhitelisted protocols, long-only risk, etc.

***

### 11) Points, Airdrops, Rebates, and Incentives (If Applicable)

11.1 **Treatment policy.** Any points/airdrops/rebates attributable to Series activity are treated as:

* retained by Series and reflected in NAV / or
* distributed to Tokenholders under a disclosed program

11.2 **Disclosure.** Method and timing of recognition in NAV: As and when realised.

***

### 12) Reporting and Transparency

12.1 **Standard reporting.** Issuer provides:

* NAV history and current NAV
* Holdings/exposure summary
* Performance metrics: APY
* Material events: security incidents, counterparty failures, wind-down events

12.2 **Frequency.** At least twice per week on best effort basis

12.3 **Audit/attestation (optional).** proof-of-reserves attestation

***

### 13) Series Wind-Down and Termination

13.1 **Triggers.** As per General Terms (Series Wind-Down Events) plus any Series-specific triggers.

13.2 **Process.** Issuer may suspend mint/redemption/transfers (if enabled), unwind positions, realise Series Assets, determine final realisation value, and distribute Series Assets (if any) pro rata after Series Waterfall.

13.3 **No top-up.** No obligation to contribute Operational Assets or other Series assets unless expressly stated.

***

### 14) Conflicts, Discretion, and Material Changes

14.1 **Conflicts.** n/a

14.2 **Issuer discretion.** Issuer discretion is limited to reasonable actions consistent with Product Documentation, especially during market disruption or wind-down.

14.3 **Material adverse changes.** Material adverse changes follow the General Terms notice framework (with emergency exception for security/compliance).

***

### 15) Risk Disclosures

As detailed in General Risk Disclosures

***

### 16) Notices and Contact

* **Official notices channel:** Discord / Telegram
* **Support contact:** Discord / Telegram
* **Effective date of these Token Terms:** From the date of smart contract deployment
* **Version:** n/a

***

### 17) Execution Blocks

* **Minimum ticket:** n/a
* **Operational onboarding:** n/a
* **Settlement instructions:** n/a
* **Cutoff times:** n/a
* **Redemption cadence:** n/a