Weighting & Cap Rules

To ensure balanced exposure and mitigate concentration risk, OLTA indices apply a defined weighting methodology with optional capping mechanisms.

Weighting Methods

OLTA supports three primary approaches, selected per index mandate:

Method	Description
Market-Cap	Weights are proportional to adjusted market capitalization (post-FFF)
Equal Weight	All assets receive equal weight regardless of size
Custom Weight	Weights based on thematic, volatility, liquidity or other protocol metrics

Each index prospectus specifies the method applied, with justification.

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Capping Rules

To prevent overconcentration in any single asset, OLTA applies optional caps at the constituent level:

Cap Type	Default Limit	Notes
Single Asset Cap	35% max	No asset may exceed 35% of the index by weight
Sector Cap	Optional	May apply to thematic indices (e.g., L2s, RWA)
Stablecoin Cap	15% max	To maintain active exposure to market assets

Custom caps may be enforced for specific index objectives and will be disclosed in the prospectus

A limited stablecoin allocation may occur temporarily for liquidity management or in thematic indices. The cap ensures the index maintains active exposure to market assets.