How it Works
Last updated
Last updated
Asset Audit
Before tokenizing a fund, the platform conducts a rigorous audit of all assets to be tokenized. This process ensures that the fund’s assets fully comply with regulatory requirements and that all data is transparent and reliable before digitalization. The audit process includes, but is not limited to, asset authenticity verification, valuation review, and compliance checks. The platform collaborates with independent third-party auditing firms to ensure the compliance and traceability of each asset, providing a solid foundation for tokenization.
Liquidity Management
Tokenized funds allow investors to adjust their asset portfolios based on market demand, making asset increase and reduction a crucial aspect of fund management. During this process, investors can adjust their holdings by increasing or reducing specific assets as needed. The platform employs smart contracts for automated management, ensuring a seamless, instant, and transparent process. Additionally, the platform dynamically adjusts the fund’s liquidity through smart contracts to respond to market fluctuations and safeguard investors’ interests.
Valuation and Net Asset Value (POR & NAV)
Fund valuation is a critical step in the tokenization process. The platform periodically calculates the fair value of assets and evaluates the total fund assets based on market conditions to determine the fund’s net asset value (NAV). Simultaneously, the platform uses the Price of Reserve (POR) as a pricing standard for each tokenized asset. The relationship between POR and NAV ensures a strong link between the token’s market price and the real asset value, preventing market bubbles or price manipulation risks.
Transparency
To ensure full transparency of all asset information, the platform records all relevant fund data on the blockchain. This includes initial asset valuations, transaction records, asset increases and reductions, NAV changes, and more. By leveraging blockchain technology, these records are stored on an immutable public ledger, allowing investors to access and verify the data at any time. This decentralized data storage approach enhances security while significantly boosting investor confidence.
Tokenization
Based on each asset’s POR and NAV, the platform converts them into corresponding digital tokens through smart contracts. Each token represents a proportional ownership of the asset, and these tokens can be traded on the secondary market or used for other fund operations. Tokenization not only enhances asset liquidity but also allows small-scale investors to participate in high-barrier markets that were previously accessible only to large investors.
Secondary Market Circulation & Transfers
CycleX provides a secondary market where users can buy, sell, and transfer tokens. The platform ensures a secure, efficient, and transparent trading environment for users.
KYC (Know Your Customer) Verification
Before conducting any transactions, users must complete the Know Your Customer (KYC) verification process. This step ensures that users comply with the platform’s regulatory requirements and helps prevent illegal activities such as money laundering and fraud. Users need to upload personal information and identity documents, and the platform utilizes a combination of AI-driven and manual review processes to swiftly complete identity verification. Once verified, users gain full access to the platform and can participate in fund token transactions.
Purchase Process
The platform’s sole accepted payment currency is USDT. During the purchase process, the platform automatically calculates the corresponding purchase price, transaction fees, and handling charges, ensuring that users are fully aware of all transaction costs.
Transfers & Trading
Fund tokens purchased by users are stored in the platform’s digital wallet. Users can choose to keep their tokens in the wallet or trade them on the secondary market. Users can set their desired selling price and execute the transaction. When another user meets the selling price, the trade is automatically completed, and assets are instantly transferred to the buyer’s account.
Intelligent Retail
To enhance the user trading experience and increase market liquidity, CycleX is preparing to launch an AI-powered retail system designed specifically for retail scenarios, including marketing and after-sales services. The AI retail system’s key features include intelligent recommendations, real-time market monitoring, and smart after-sales support.
Marketing System
The AI retail system leverages big data analysis and user behavior tracking to accurately understand each user’s needs, preferences, and risk tolerance. Based on this data, the AI retail system provides personalized marketing recommendations, including suitable fund token suggestions and investment portfolio advice. Through periodic intelligent recommendations, the platform maximizes user trading activity and helps investors make well-informed investment decisions.
Rating System
Data Collection & Integration
Multi-Source Data Integration: AI integrates data from various sources, including financial reports, market data, news, social media, and macroeconomic indicators, for comprehensive data aggregation and processing.
Real-Time Data Updates: AI continuously updates asset-related information by crawling real-time data or interfacing with third-party data providers.
Asset Valuation
Automated Valuation Models: Using machine learning and statistical analysis, AI provides real-time asset valuations and compares them to market standards.
Trend Analysis: AI identifies and predicts asset value trends, aiding investors in decision-making.
Multi-Factor Analysis: By considering multiple factors (such as financial indicators and market sentiment), AI assesses comprehensive asset ratings.
Automated Report Generation
Real-Time Rating Updates: The AI system automatically updates ratings when asset data changes and generates related reports.
Personalized Reports: AI customizes rating reports based on user needs, offering tailored decision-making support.
