Operating Mechanism

CycleX system operation process

SPV Asset Holding and Segregation

The underlying assets are held and managed by an independent SPV legal entity, segregated from the platform’s own assets and liabilities. The SPV periodically discloses the reserve asset pool and key documents, establishing a verifiable asset governance trail.

Standardized Tokenization (Fund Token)

Following due diligence, audit, and compliance assessment, the underlying assets are tokenized into Fund Tokens. Contract standard: ERC-3646 (featuring permissions and compliance controls, share registration and traceability, and linkage to information disclosure). Shareholding details and disclosure highlights are recorded on-chain, ensuring verifiability and traceability.

POR ↔ NAV Transparency Linkage

The platform uses POR (Price of Reserve) as the pricing benchmark for tokenized assets, disclosed in conjunction with NAV (Net Asset Value). This strengthens the linkage between token market prices and the real value of underlying assets, reducing risks of price manipulation and bubbles. Core data (initial valuation, transaction records, asset inflows/outflows, NAV changes, etc.) are recorded on-chain, immutable and verifiable.

Trading and Settlement (App/PC)

Upon completing KYC/AML procedures, investors can subscribe, redeem, and trade on the secondary market via the CycleX App/PC. The platform currently only accepts USDT as the payment currency, with trade matching settled on-chain and the entire process fully recorded.