# Key Concepts *** **Index Token** A Canton-native token representing 1:1 economic exposure to a basket of exchange-listed real estate shares. The token tracks the performance of the reference index through full replication — not synthetic exposure. *** **Full Replication** The method by which the Fractit SPV purchases actual constituent shares of the target index in their target weights via licensed broker partners. Every token issued is backed by real shares held in institutional custody. No swaps, no derivatives, no synthetic structures. *** **SPV (Special Purpose Vehicle)** The legal entity that holds the underlying constituent shares in institutional custody on behalf of token holders. The SPV purchases shares through the broker, holds the beneficial interest, and rebalances following each index quarterly review. *** **NAV (Net Asset Value)** The per-token value of DFMREIT, calculated daily as: ``` NAV per Token = (Custody Value + Cash Balances − Accrued Liabilities) ÷ Total Token Supply ``` An indicative NAV is displayed in real-time during DFM trading hours. *** **AMM (Automated Market Maker)** The on-chain liquidity pool that powers Fractit's secondary market. Uses a constant product formula (`x · y = k`) to price trades continuously — no order books, no counterparty matching. Operates 24/7. *** **Subscription** The primary market process through which a user acquires index tokens by depositing CC or USDC. Available only when the underlying exchange is open. Tokens are delivered immediately at the current market price. *** **Redemption** The process through which a token holder burns their index tokens and receives CC or USDC in return. Available during pre-announced weekly windows. Outside windows, holders exit via the secondary AMM market. *** **Liquidity Provider (LP)** A participant who deposits equal values of an index token and USDC/CC into the AMM pool. In return, LPs earn a share of the 0.25% trading fee on every swap that passes through the pool. *** **Whitelist** The on-chain list of wallets that have completed KYC/AML onboarding and are eligible to hold, send, or receive index tokens. Transfer eligibility is enforced at the Canton contract layer on every transaction — not just at the UI. *** **Canton Network** The privacy-preserving, enterprise-grade distributed ledger on which Fractit is built. Provides sub-second finality, DAML smart contract execution, and privacy by default — transaction details are visible only to authorised parties. *** **DAML** The smart contract language used on Canton Network. Purpose-built for financial agreements, with native support for obligations, rights, and multi-party workflows. Every Fractit lifecycle event is governed by a DAML contract. *** **DFMREI** The DFM Real Estate Sector Index — the reference index tracked by DFMREIT. Measures the price performance of DFM-listed companies classified under the GICS Real Estate sector. Calculated in real-time by S\&P Dow Jones Indices on behalf of the Dubai Financial Market. *** **Premium / Discount** The difference between the AMM market price of an index token and its indicative NAV. When the underlying exchange is closed, the AMM price may drift above (premium) or below (discount) the last published NAV. The spread is displayed in real-time on the platform at all times. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.fractit.com/getting-started/key-concepts.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.