Minting & Redemption Logic

How users enter and exit OLTA funds through fully automated and secure smart contract workflows.

Minting Process

When a user invests in an OLTA index product, the protocol executes the following steps:

1. USDC Deposit The user deposits USDC into the selected fund through the OLTA interface.

2. NAV Snapshot The smart contract retrieves the current Net Asset Value (NAV) per unit, based on the most recent oracle-driven price data.

3. Position Allocation IRTs are issued to the investor’s address and represent direct, non-transferable ownership in the fund. Underlying assets are acquired and allocated according to the fund's weighting strategy.

4. IRT Minting The system mints a precise number of IRTs reflecting the user’s pro-rata exposure:

$${IRT} = \frac{\text{USDC Deposited}}{\text{NAV per Unit}}$$

Where

• IRT Units = number of tokens minted to the investor

• USDC Deposited = amount contributed by the user

• NAV per Unit = current net asset value of the index fund per unit

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Redemption Process

When exiting a fund, redemptions are processed exclusively through the OLTA protocol, not directly via token mechanics:

1. Redemption Request The user initiates a redemption from the OLTA interface or API.

2. NAV Recalculation A fresh NAV per unit is computed using current asset prices, slippage-aware logic, and smoothing mechanisms.

3. IRT Burn The investor’s IRTs are burned by the protocol.

4. USDC Payout The user receives their corresponding USDC amount, calculated based on the latest NAV. Redemption is performed securely via smart contract flows, in alignment with fund rebalancing logic.

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Notes on Process Integrity

• Non-Transferable: IRTs cannot be traded or moved across wallets, ensuring identity-linked ownership and risk isolation.

• Protocol-Governed: All minting and redemption flows are handled onchain by verified smart contracts.

• Transparency: NAV updates, redemption history, and IRT supply are fully auditable.

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OLTA’s minting and redemption logic ensures that user flows remain efficient, secure, and aligned with institutional standards of pricing accuracy and risk control.