> ## Documentation Index
> Fetch the complete documentation index at: https://docs.aarc.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# FAQ

> Frequently asked questions about BTCY

## General

<AccordionGroup>
  <Accordion title="What is BTCY?">
    BTCY is a yield-bearing BTC token targeting approximately 4-6% net annual return through exposure to the Starboard Sygnum BTC Alpha Fund (SSBAF), a market-neutral arbitrage strategy. It combines institutional exposure with an instant liquidity buffer and DeFi composability. Target returns are not guaranteed.
  </Accordion>

  <Accordion title="What's the difference between iBTCY and BTCY?">
    **iBTCY** is the primary token representing your position. It's KYC-gated and transfer-restricted to whitelisted wallets.

    **BTCY** is an ERC-4626 vault backed 1:1 by iBTCY. It has permissionless transfers, enabling use as DeFi collateral, DEX liquidity, and yield derivatives.

    Both share identical NAV.
  </Accordion>

  <Accordion title="What's the minimum investment?">
    100,000 USD equivalent in BTC for both subscription and redemption.
  </Accordion>

  <Accordion title="Is there a lock-up period?">
    No lock-up. However, instant-minted iBTCY has a 7-day cool-down for instant redemptions. You can always queue for monthly redemption or sell BTCY on secondary markets (when available).
  </Accordion>

  <Accordion title="What are the fees?">
    * **Platform Fee:** 50 bps annually
    * **Instant Redemption:** 10 bps per transaction
    * **OTC Conversion:** 10 bps (for wrapped BTC)
    * **Subscription:** None
    * **Primary Redemption:** None
  </Accordion>
</AccordionGroup>

## Investing

<AccordionGroup>
  <Accordion title="Who can invest?">
    iBTCY is available to Professional and Qualified Investors only.

    **Not eligible:** US Persons, BVI residents, persons in Sanctioned Jurisdictions (Cuba, Iran, North Korea, Syria, Russia, Belarus, Crimea/Donetsk/Luhansk), and retail investors.
  </Accordion>

  <Accordion title="Can I deposit from an exchange wallet?">
    No. Exchange wallets (Coinbase, Binance, Kraken, etc.) cannot be verified for ownership. For compliance and security, we accept only self-custody wallets, institutional custody (Fireblocks, Copper, Anchorage, BitGo), and Safe Multisig.
  </Accordion>

  <Accordion title="Why is there a 6-hour cooling-off period?">
    The 6-hour cooling-off window allows investors to cancel their subscription if they change their mind. It also ensures proper NAV pricing alignment for batch processing.
  </Accordion>

  <Accordion title="Do I need a native BTC address?">
    Only if you want to receive native BTC on redemption. If you prefer wrapped BTC (WBTC, cbBTC, BBTC, tBTC), an Ethereum address is sufficient.
  </Accordion>

  <Accordion title="How long until my queued iBTCY is minted?">
    Queued subscriptions are deployed to SSBAF on the monthly dealing cycle. After SSBAF subscription completes, iBTCY is minted (15-30 days from queue date, depending on timing within the monthly cycle).
  </Accordion>

  <Accordion title="Is the wrapped BTC conversion automatic?">
    Yes. When you deposit wrapped BTC (WBTC, cbBTC, BBTC, tBTC), the backend automatically triggers OTC conversion to native BTC. No manual action required.
  </Accordion>

  <Accordion title="How long does onboarding take?">
    * **Individuals:** 3-5 business days
    * **Entities:** 4-6 business days

    KYC, forms, and wallet verification run in parallel to minimize delays.
  </Accordion>

  <Accordion title="Can I change my wallet address later?">
    Yes. Submit a change request via dashboard or email. The same verification process applies. For BTC addresses, re-whitelisting is required.
  </Accordion>

  <Accordion title="What if I deposit native BTC but want to redeem wrapped?">
    Cross-type redemption is allowed. OTC fees (10 bps) apply to wrapped BTC redemptions.
  </Accordion>

  <Accordion title="What if I deposited WBTC but want native BTC on redemption?">
    All redemptions settle in native BTC by default. If you provided only an Ethereum address (no native BTC address), you can receive wrapped BTC via OTC conversion (10 bps fee).
  </Accordion>
</AccordionGroup>

## Redemptions

<AccordionGroup>
  <Accordion title="How do redemptions work?">
    Three paths:

    1. **Instant:** From buffer, T+0 to T+2, 10 bps fee
    2. **Primary:** Monthly dealing windows, 30-45 days, no fee
    3. **Secondary:** Swap BTCY on DEX at market price (planned)
  </Accordion>

  <Accordion title="What's the worst-case exit time?">
    Full settlement can take significantly longer than 90 days; in extreme circumstances redemptions may take 180 days or longer, or be suspended indefinitely under the Subscription Agreement. Indicative timelines (for example 60-90 days when an 80% fund-level gate applies) are not a maximum.
  </Accordion>

  <Accordion title="What happens if the buffer is depleted?">
    Instant redemptions may pause. You can still:

    * Queue for monthly (primary) redemption
    * Sell BTCY on secondary markets (when available)

    Buffer recovers when SSBAF redemptions settle or new subscriptions arrive.
  </Accordion>

  <Accordion title="Can redemptions be suspended?">
    Yes, in extreme circumstances:

    * Market disruption events
    * SSBAF suspending redemptions
    * Blockchain disruption
    * Regulatory order

    There is no limit on suspension duration.
  </Accordion>
</AccordionGroup>

## Yield & Risk

<AccordionGroup>
  <Accordion title="How is yield generated?">
    Through the Starboard Sygnum BTC Alpha Fund (SSBAF), which employs market-neutral strategies:

    * BTC/ETH basis trades
    * Funding rate arbitrage
    * Cross-asset arbitrage

    The strategy targets 8-10% net at fund level, translating to 4-6% for iBTCY holders after buffer drag and platform fee.
  </Accordion>

  <Accordion title="Why 4-6% when the strategy does 8-10%?">
    iBTCY prioritizes liquidity. The 32% instant buffer earns no yield (drag). After this buffer drag and the 50 bps platform fee, holders net 4-6%. Direct fund access would yield more but requires longer redemption windows and offers no DeFi utility.
  </Accordion>

  <Accordion title="Can I lose money?">
    Yes. You may lose all or substantially all of your investment. Target returns are not guaranteed; actual returns may be significantly lower, zero, or negative. You are an unsecured creditor of the issuer with no ownership interest in the underlying assets. In issuer insolvency, holders rank behind secured creditors and may recover nothing.
  </Accordion>

  <Accordion title="What if Sygnum or the fund fails?">
    iBTCY has 100% yield concentration in SSBAF. If SSBAF underperforms, closes, or becomes unavailable, iBTCY's yield is directly impacted. The issuer would either transition to an alternative yield source (with investor notice) or initiate orderly wind-down.
  </Accordion>
</AccordionGroup>

## DeFi

<AccordionGroup>
  <Accordion title="Where can I use BTCY?">
    Targeted integrations:

    * **Collateral:** Morpho, Euler
    * **DEX Liquidity:** Curve
    * **Yield Derivatives:** Pendle, Spectra
  </Accordion>

  <Accordion title="Can BTCY be liquidated if used as collateral?">
    Under normal operations, BTCY transfers are permissionless. The BTCY contract includes an emergency pause reserved for critical security events (for example smart contract exploit or oracle manipulation), authorized via multi-party governance. The design intent is to keep transfers permissionless except in those critical events so liquidations can execute under normal conditions.
  </Accordion>

  <Accordion title="What if I buy BTCY on a DEX without KYC?">
    You can hold and trade BTCY freely. However, you cannot unwrap to iBTCY or access redemption proceeds without completing KYC verification. Your only exit would be selling BTCY on secondary markets.
  </Accordion>

  <Accordion title="Can I buy BTCY on secondary markets and then KYC to get iBTCY?">
    Yes. Purchase BTCY on DEX, then complete KYC/onboarding with the issuer, and unwrap BTCY to iBTCY (requires allowlist approval).
  </Accordion>
</AccordionGroup>

## Technical

<AccordionGroup>
  <Accordion title="What blockchain is BTCY on?">
    Ethereum Mainnet. iBTCY is ERC-20, BTCY is ERC-4626.
  </Accordion>

  <Accordion title="Are the contracts audited?">
    Yes. Smart contracts were audited by Cyfrin (February 2026). All identified issues were resolved prior to deployment. See the [audit report](https://github.com/Cyfrin/cyfrin-audit-reports/blob/main/reports/2026-02-20-cyfrin-aarc-btcy-v2.0.pdf) and [contract addresses](/developers/contracts).
  </Accordion>

  <Accordion title="What are the mainnet contract addresses?">
    **iBTCY:** [`0x6A5fF33B097891100ec2a37B220B3E98E39E8Ae6`](https://etherscan.io/address/0x6a5ff33b097891100ec2a37b220b3e98e39e8ae6) (ERC-20)

    **BTCY:** [`0x497C761D268cBC2DB6f40CdB21B9AC019c37917D`](https://etherscan.io/address/0x497c761d268cbc2db6f40cdb21b9ac019c37917d) (ERC-4626)

    **NAV oracle:** [`0x5a33E6CB085E2DdD0df558c0D7d71a27be6b9131`](https://etherscan.io/address/0x5a33E6CB085E2DdD0df558c0D7d71a27be6b9131). On-chain PoR feed is separate and not yet live.
  </Accordion>

  <Accordion title="How is NAV calculated?">
    NAV per iBTCY = (Buffer BTC + SSBAF Units × SSBAF NAV per Unit − Accrued Platform Fees) / Total iBTCY Supply. Daily indicative NAV via Chainlink; monthly official NAV for accounting. Live metrics: [Proof of Solvency dashboard](https://aarc.accountable.capital/). See [NAV & Transparency](/product/transparency).
  </Accordion>
</AccordionGroup>

## Legal & Platform

<AccordionGroup>
  <Accordion title="What law governs my investment versus use of the website or app?">
    iBTCY is issued under the Subscription Agreement with SD Global Capital Limited (BVI law and BVI courts as stated there). Use of the Aarc platform may be governed by separate Singapore law terms operated by Plexus Labs Pte. Ltd. See [Platform and issuer](/legal/platform-legal).
  </Accordion>

  <Accordion title="Is there a maturity date on iBTCY?">
    No. The Notes are **perpetual** with no stated maturity. They remain outstanding until redeemed under the Subscription Agreement or otherwise dealt with under the Transaction Documents.
  </Accordion>

  <Accordion title="What happens if I hold BTCY and become sanctioned or ineligible?">
    You may continue to hold and transfer BTCY (transfers are permissionless under normal operations), but you generally **cannot** complete KYC, unwrap to iBTCY, or access issuer redemption. The practical exit is selling BTCY on secondary markets if a buyer exists. See [Restricted Jurisdictions](/legal/jurisdictions).
  </Accordion>

  <Accordion title="How is my personal data handled?">
    Platform onboarding and website use are governed by Plexus Labs' [Privacy Policy](https://aarcxyz.notion.site/privacy-policy). Investment and compliance data for iBTCY is processed under the Subscription Agreement and issuer arrangements. See [Platform and issuer](/legal/platform-legal).
  </Accordion>
</AccordionGroup>

## Still Have Questions?

<Card title="Contact Us" icon="envelope" href="/contact">
  Reach out to the team
</Card>

***

<Note>
  Available only to eligible professional/qualified investors on an invite-only basis, subject to onboarding and compliance approval. For informational purposes only and not investment advice. Not an offer to the public or a solicitation where unlawful. No retail distribution. Not available to US Persons.

  [Disclaimers](/legal/disclaimers) · [Platform and issuer](/legal/platform-legal)
</Note>