📄️ Onboarding and ‘Know Your Customer’ (KYC)
The onboarding process requires investors to complete and submit KYC and accreditation documentation and agree to a set of terms and conditions. The KYC / accreditation process will be managed by our partner Securitize iD. The application is fully digital and can typically be completed in under 15 minutes.
📄️ Accreditation
USTY tokens are offered in compliance with Rule 506(c) of the U.S. Securities Act of 1933. This means that USTY is open to accredited investors. Prior to accepting subscriptions for USTY, Yieldteq must verify that each investor meets these accredited investor criteria. The verification is conducted by Yieldteq’s partner Securitize iD. It may include reviewing financial statements, tax returns, bank statements, or obtaining written confirmation from a qualified third party, such as a registered broker-dealer, attorney, or certified public accountant.
📄️ Subscription
USTY tokens are offered based on a Private Placement Memorandum (PPM) that outlines the investment opportunity, risks involved, financial information, and other relevant details.
📄️ Redemption
Investors can redeem their USTY for USDC by initiating a withdrawal request. During the redemption process, the USTY tokens previously held by the investor will be burnt. The final amount of USDC the investor will receive will depend on the amount of USTY redeemed, the prevailing US$/USDC exchange rate at the time of deposit, and the NAV of the ETF.
📄️ Transfer Agent
Yieldteq has engaged an SEC-registered transfer agent and technology service provider, Securitize, LLC, to serve as Yieldteq’s Transfer Agent and as service provider in creating and disbursing digital asset securities on the blockchain representing the Tokens and to, in part, facilitate secondary market trading activity in the future, in the sole discretion of the Company.
📄️ Utilisation Rate
The utilization rate refers to the ratio of aggregate nominal amount of ETF shares held in the USTY Vault to the aggregate outstanding nominal amount of USTY, expressed as a percentage of the aggregate outstanding nominal amount of the USTY. A higher utilization rate signifies that a greater proportion of USTY are invested into ETF. The utilization rate is targeted at a minimum of 95%. Note, however, that the actual utilization rate may fluctuate due to new deposits, redemptions, and portfolio rebalancing. The actual yield of USTY is dependent on the utilization rate and the NAV of the ETF.
📄️ Fees & expenses
When investors purchase USTY, Yieldteq charges them a monthly fee on their account balance equal to of 15 basis points (0.15%) which is calculated on an annualized basis (0.0125% per month)..
📄️ Token prices
Yieldteq’s smart contract will track USTY’s price. We are working on an on-chain oracle to provide live price updates
📄️ Security
Security and compliance are critical aspects for Yieldteq to ensure the protection of user funds, prevent fraudulent activities, and maintain trust in the USTY ecosystem. Given the decentralized nature of cryptocurrencies and the potential for financial transactions, it is essential for us that we implement effective measures to ensure the security of USTY and comply with relevant regulations.
📄️ Partners & service providers
Another important aspect is the selection of the right service providers. At Yieldteq we are working with leading financial institutions that provide credibility, expertise, and exceptional know-how. Collaborating with institutions that have experience in handling cryptocurrency-related business can further facilitate compliance with financial regulations and enhance the reputation of the crypto service provider.