Product structure

Num Finance Ltd. is a digital asset business that adheres to the highest security standards and complies with international regulations.

The Company issues nTokens and operates the Num Finance platform, utilizing various service providers directly or on behalf of users.

Rights conferred by the nTokens

The holders of nTokens are entitled to receive the proceeds from the sale of the underlying asset net of expenses and commissions.

Case study

Underlying Portfolio: 100 shares CSPX, Reference Price CSPX: 540, nToken (nSP500) = 100, Redeem 10 nSP500, Fees and expenses 54, Right to receive in USDC = 5,346.

The price of the ETF is indicative and expressed in U.S. dollars.

This Case study is an example of how an operation works for the tokenization of a RWA (Real World Asset)

Roles

Num Finance works with enterprise-grade partners and, when possible, with leading regulated institutions.

Role	Entity
Digital asset issuer	Num Finance Limited
Digital asset custody	Fireblocks​
Smart contract audit	Coinspect
KYT and Crypto Compliance	Elliptic
Security Authentication	Auth0

User experience

The user experience of nTokens will feel familiar to users of other stablecoins such as USDC, USDT, or other fiat-backed stablecoins, since they all:

• Have Primary users (KYC'd account holders) and Secondary users (pseudonymous users with no direct relationship with the issuer).

• Allow primary users to purchase and redeem tokens via portal or API, used mainly by Exchanges, Arbitrageurs/Market Makers, or large buyers.

• Rely on arbitrageurs to maintain secondary market prices.

• The nTokens can be used freely in the secondary market, including transfers to other EOAs or Smart Contracts, without any additional approvals.

User types

The Company also recognizes two types of users: primary and secondary users.

• Primary users have an approved account with Num Finance, granting them access to the Num Finance platform. The platform allows users to mint and redeem nTokens with USDC.

• Secondary users are those who acquired their nTokens via the secondary market, such as a pool in DeFi applications, or have been paid in nTokens by another nTokens holder. Secondary users need to apply for a Num Finance account before they can redeem nTokens directly with the Company. Alternatively, users can choose to swap their nTokens to other users in the secondary market.

Note that the Company does not directly control secondary market pricing. The Company does not guarantee that users can swap their nTokens at any price in the secondary market.

Open composability

nTokens are ERC20 tokens that can be used freely in any ERC20-compatible protocol as long as such activity falls under the terms and conditions. The Company will conduct efforts to provide nTokens users with more options, which include:

• Swap pools: allowing for cheap swaps from the most popular assets to nTokens.

• Lending protocols: providing nTokens as collateral, leveraged SOFR strategies, and better economics for shorting digital assets.

• LPs: Digital asset pools trading against USD-denominated stablecoins benefit from a yield-bearing USD asset to boost returns.

Warning: given the risky nature of bridges, Num Finance does not endorse or support any bridges. Users who leverage bridges do so at their own risk. To minimize such risk, the Company will aim to offer native nTokens in all large blockchains over time.

Supported blockchains

nTokens will initially launch in Optimism, with other blockchains coming after. Such blockchains will be prioritized based on market demand. Since the main bottleneck to launching in alternative blockchains is initial liquidity, if you are a large liquidity provider and are interested in partnering for launch in other blockchains, feel free to reach out to [e-mail].