ARKS
  • Introduction
  • ARKS Overview
  • How ARKS Works
    • BNPL
    • Mortgage Lending
    • Transferring NFT with Loans
    • Flash Loan
    • Liquidation and Auction
    • Oracle
    • Interest Rate Model
    • Liquidity-Risk-Based Tranche Lending Pool ( Mode 1)
    • The junior pool and senior pool in the Assets Pool's structured loan products (Mode 2)
    • Legally Compliant
    • Security Token Offering
      • Regulation D
      • Regulation S
      • Regulation A
  • Off-Chain Structure Of RWA
  • US Treasury NFT
    • Product Architecture
    • UST NFT
    • Subscription
    • Redemption and Rebasement
    • Utilisation Rate
    • Fee Structure
    • Token Airdrop
  • Token Economics
    • ARKS Economic Model
    • ACredit Level System
    • ARKS Token
    • veARKS
  • DAO
    • Dividend Pool
    • Governance
    • Referral Plan
    • ARKS For Pool Delegates
  • Legal
    • Privacy Policy
    • Interface Terms of Use
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Off-Chain Structure Of RWA

PreviousRegulation ANextProduct Architecture

Last updated 2 years ago

Tokenizing real-world assets(RWA) requires a real-world legal structure. The setup for each pool is designed to mirror the protocol structure and the real-world relationships between the parties. The templates provided are based on legal structures used for asset-backed securitizations for many decades.

Each asset has a legal entity tied to it, a special purpose vehicle (SPV). The SPV holds the specific real-world asset, separating the asset from each other and ensuring the assets in the pool are bankruptcy remote from the portfolio manager. An Operating Agreement defines the operations of the SPV. To securitize assets, the legal ownership of the assets is transferred by the original asset holder to the SPV.

The parent company, ARKS Labs Foundation, manages ARKS Portfolio Management LLC via an operating agreement, and the latter issues RWA SFTs to both institutional investors and retail investors. ARKS Portfolio Management LLC manages ARKS Project Management LLC which is an umbrella entity that manages all the project specific SPVs (SPV A, SPV B, SPV C, ......). The specific SPV like SPV A holds the asset A. All of the rent and capital appreciation of asset A, B, C... will be transferred to RWA Revenue Rool on chain through our cooperative money service providers and then distributed to users.