Flow of Funds
From Deposit to Redemption: How Your Capital Moves
Fount provides a clear, auditable path from crypto deposit to off-chain investment and back - combining smart contract enforcement with institutional-grade execution.
Here's what happens behind the scenes.
1. Deposit Into Vault
You begin by depositing BTC or USDC into a Fount vault via your wallet.
Funds are held in a smart contract queue
If you're depositing BTC, it's converted into USDC via a regulated partner
All assets are secured by Fount's Conduit contract, which safely manages custody handoff
2. Off-Chain Transfer & Fiat Conversion
Once deposits are confirmed:
USDC is transferred to a licensed Yield Curator
Crypto is off-ramped into fiat through regulated entities (e.g. Circle)
The funds are now in a position to be deployed into real-world investments
🏛️ Regulatory Compliance
All fiat movement occurs through regulated banks, custodians, or brokers, depending on the strategy.
3. Investment Execution by the Yield Curator
The Yield Curator executes the strategy using the capital received:
Allocates into financial instruments (e.g. treasuries, corporate loans, ETFs)
Manages portfolio construction, risk, and reporting
Holds assets in custody with institutions like BNY Mellon, Fireblocks, etc.
4. On-Chain NAV Reporting
As the portfolio earns yield or appreciates:
The NAV (Net Asset Value) of the strategy is updated periodically
Fount's Reporter contract posts the new valuation to the vault on-chain
Your tRWA token now reflects the new, higher value
💡 Key Insight
Your token balance stays the same, but the redeemable value increases over time.
5. Redemption & Settlement
When you choose to exit:
Step-by-Step Process:
1. Request Submission
You submit a withdrawal request in the Fount app
2. Queue Processing
Your request is queued and processed at the next redemption window
3. Asset Liquidation
The Yield Curator liquidates assets and returns fiat to the on-ramp partner
4. Crypto Conversion
Fiat is converted back to USDC (or BTC, if applicable)
5. Token Burn & Payout
You burn your tRWA token and receive your crypto
⏱️ Timing Varies by Strategy
Some strategies offer quicker liquidity (e.g. within 1–3 days), while others may have longer cycles (up to 30+ days) depending on the underlying assets.
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