# Overview

## Fractit

**On-chain real estate index markets. Built for compliant access, privacy-preserving execution, and atomic settlement.**

Fractit is the protocol layer bringing the world's regulated real estate index markets on-chain. Through its index markets product, Fractit issues Canton-native tokens that provide 1:1 economic exposure to fully replicated baskets of exchange-listed real estate shares, held in institutional SPV custody.

***

### The problem worth solving

Real estate is the world's largest asset class. Yet access to listed real estate index exposure remains locked behind exchange hours, broker accounts, and jurisdictional friction.

Traditional channels require brokerage relationships and are bound entirely to exchange operating hours. Settlement is slow. Custody is opaque. And access is unavailable to large segments of the global investor population.

The gap is not in the quality of the underlying asset. **The gap is in the access layer.**

***

### What Fractit provides

* **Compliant on-chain index exposure** — KYC-gated and VARA-oriented, backed 1:1 by real constituent shares in institutional SPV custody.
* **24/7 secondary market** — an AMM-powered trading pool that runs continuously, even when the underlying exchange is closed.
* **Full on-ledger auditability** — every mint, swap, transfer, and redemption recorded immutably on Canton Network.

***

### At a glance

| Feature             | Detail                                                    |
| ------------------- | --------------------------------------------------------- |
| Underlying exposure | Fully replicated constituent shares in SPV custody        |
| Secondary market    | 24/7 AMM — no order books, no counterparty matching       |
| Settlement currency | CC (Canton Coin) and USDC                                 |
| Network             | Canton Network                                            |
| Compliance          | VARA-oriented, KYC-gated, on-chain transfer controls      |
| First live market   | DFMREIT — Dubai Financial Market Real Estate Sector Index |

***

### Where to start

|                   |                                                            |
| ----------------- | ---------------------------------------------------------- |
| Quickstart        | Connect your wallet and acquire DFMREIT tokens in minutes. |
| Key Concepts      | Understand the core terminology before you dive in.        |
| DFMREIT           | The live product — Dubai real estate index on-chain.       |
| Index Methodology | How the reference index is constructed and maintained.     |


# Quickstart

Get from zero to holding DFMREIT tokens in four steps.

***

### Before you begin

You will need:

* A Canton-compatible wallet (Loop Wallet is recommended for most users)
* CC (Canton Coin) or USDC to subscribe with
* A valid identity document for KYC verification

***

### Step 1 — Connect your wallet

Go to [markets.fractit.com](https://markets.fractit.com) and click **Launch App**. Connect your Canton-compatible wallet when prompted.

> DFMREIT runs on Canton Network — not Ethereum or any EVM chain. MetaMask and other EVM wallets are not supported.

***

### Step 2 — Complete KYC

First-time users must complete identity verification before any action is permitted. Click **Get Verified** and follow the onboarding steps:

* Submit a government-issued identity document
* Complete liveness check
* Pass sanctions and PEP screening

Verification typically completes within minutes. Once approved, your wallet is added to the whitelist and you can subscribe, trade, and redeem.

***

### Step 3 — Subscribe for DFMREIT

Subscriptions are available when the Dubai Financial Market is open (Sunday–Thursday, 10:00 AM–2:00 PM Gulf Standard Time).

1. Navigate to **Markets → DFMREIT**
2. Enter the amount of CC or USDC you want to invest
3. Review the current market price and estimated token amount
4. Confirm the transaction

DFMREIT tokens are delivered to your wallet immediately.

***

### Step 4 — Trade or hold

Your tokens are now live in your wallet. From here you can:

* **Hold** — your token tracks the DFMREIT index performance
* **Trade** — buy or sell anytime on the secondary AMM market, which runs 24/7
* **Redeem** — burn your tokens for CC or USDC during an announced redemption window

***

### Next steps

* How the AMM Works — understand secondary market pricing
* NAV Calculation — how the token value is calculated
* Fee Structure — all fees in one place


# Key Concepts

The vocabulary you need to use Fractit confidently.

***

**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.


# Index Methodology

The DFMREIT token tracks the DFM Real Estate Sector Index (DFMREI) — published by the Dubai Financial Market and calculated by S\&P Dow Jones Indices.

***

### The reference index: DFMREI

The DFMREI measures the price performance of DFM-listed companies classified under the Real Estate sector according to the **Global Industry Classification Standard (GICS)**.

|                   |                                                                         |
| ----------------- | ----------------------------------------------------------------------- |
| Index Owner       | Dubai Financial Market (DFM)                                            |
| Calculation Agent | S\&P Dow Jones Indices (S\&P DJI)                                       |
| Calculation basis | Price Return — capital gains and losses from share price movements only |
| Publication       | Real-time during DFM trading hours                                      |
| Base currency     | UAE Dirham (AED)                                                        |

The DFM acts as Index Owner. S\&P DJI serves as the independent calculation agent, computing constituent weights on an end-of-day (EOD) basis in accordance with the official DFM Index Procedures (Version 22-01, November 2022).

***

### Weighting method

The DFMREI is **free-float-adjusted, market-capitalisation weighted**.

Each constituent's weight reflects its total market capitalisation adjusted by a Free Float Factor (FFF). The FFF excludes shares held by major shareholders, strategic investors, and other non-freely-tradeable blocks — ensuring the index reflects genuinely investable market activity.

The FFF is assigned on a tiered basis:

| Free Float Range | Free Float Factor Applied     |
| ---------------- | ----------------------------- |
| 5% – 25%         | 25% of market capitalisation  |
| 25% – 50%        | 50% of market capitalisation  |
| 50% – 75%        | 75% of market capitalisation  |
| Above 75%        | 100% of market capitalisation |

Companies with a Free Float Factor below 5% are not eligible for index inclusion.

***

### Single-constituent weight cap

No single constituent may exceed a **10% weight** at rebalancing.

Any constituent whose free-float-adjusted market cap weight exceeds 10% at the Rebalancing Reference Date is capped at 10%, with the excess redistributed proportionally across the remaining constituents.

***

### Rebalancing schedule

The index is reviewed and rebalanced **quarterly**.

| Date                       | Definition                                                                            |
| -------------------------- | ------------------------------------------------------------------------------------- |
| Rebalancing Reference Date | Close of trading on the Wednesday prior to the second Friday of the rebalancing month |
| Rebalancing Effect Date    | Monday market open following the close of the third Friday of the rebalancing month   |

Constituent weights are updated at the open of the Rebalancing Effect Date. Eligibility is assessed using market data from the preceding three months.

***

### Corporate actions

Splits, dividends, rights issues, spin-offs, mergers, and delistings are handled by S\&P DJI in accordance with the S\&P Corporate Actions Table (Appendix 2 of the DFM Index Procedures). Changes are announced at least one business day before implementation. Fractit's SPV operations team follows the same corporate action policy to maintain 1:1 replication fidelity.

***

### Index governance principles

The DFM Index Procedures are governed by five principles:

1. Constituents are freely tradable and have adequate liquidity relative to their size.
2. The index has operational continuity and only includes frequently traded securities.
3. Constituent weightings are representative of the market being measured.
4. All decisions are governed by an independent Index Policy Committee.
5. The methodology is transparent, with public consultation before any changes are introduced.


# Full Replication Model

Every DFMREIT token is backed 1:1 by real constituent shares held in institutional SPV custody. No synthetics. No swaps. No basis risk.

***

### Full replication vs. synthetic

There are two ways to build an index product. Fractit has chosen full replication — the harder path, and the only one consistent with institutional-grade transparency.

|                     | Full Replication (Fractit)               | Synthetic                                |
| ------------------- | ---------------------------------------- | ---------------------------------------- |
| Underlying exposure | Actual constituent shares in SPV custody | Derivatives or swap contracts            |
| Counterparty risk   | Custodian only                           | Swap counterparty + custodian            |
| Basis risk          | Zero — 1:1 to index                      | Present — structural divergence possible |
| Transparency        | Full — holdings publicly disclosed       | Partial — swap terms often opaque        |
| Regulatory standing | Strong — direct asset backing            | Varies by structure                      |

***

### How it works

When a user subscribes for DFMREIT tokens:

1. The user submits CC or USDC via their whitelisted Canton wallet.
2. DFMREIT tokens are issued immediately at the current market price.
3. Fractit's operations layer off-ramps the proceeds via licensed FX and brokerage partners.
4. The equivalent value of constituent shares — weighted to the current DFMREI composition — is purchased on the DFM via the partner broker.
5. The purchased shares are transferred to the Fractit-linked SPV and held in institutional custody.

At the end of this process, every token in circulation is backed by a real-world shareholding. There is no gap between what the token represents and what the SPV holds.

***

### The SPV structure

The SPV (Special Purpose Vehicle) is the legal entity that:

* Holds the beneficial interest in the underlying DFM-listed shares
* Is the named account holder at the institutional custodian and depository
* Rebalances holdings following each DFM quarterly rebalancing cycle
* Processes corporate actions in accordance with the DFM index methodology

The SPV is structured to ring-fence underlying assets from Fractit's operational entity, providing an additional layer of protection for token holders.

***

### Custody and depository

The underlying shares held by the SPV are safeguarded by an institutional custodian and registered with the relevant securities depository. The custodian is responsible for:

* Safekeeping of shares and settlement of broker trades
* Processing of corporate action instructions from the SPV
* Providing daily custody valuations used in NAV calculation
* Reconciliation reports disclosed to token holders

***

### Rebalancing

Following each DFM quarterly rebalancing, Fractit's operations team:

1. Receives updated constituent weights from DFM / S\&P DJI
2. Calculates required trades to bring SPV holdings in line with the new index weights
3. Executes trades via the licensed broker partner during DFM trading hours
4. Reconciles post-rebalance holdings against the reference weights
5. Publishes a rebalance summary to token holders

Rebalancing activity is disclosed in advance and reflected in the NAV on the rebalance effective date.

***

### Current DFMREI constituents

The DFMREI currently consists of four DFM-listed companies classified under the GICS Real Estate sector:

| Company                 | Ticker   | Description                                                                                           |
| ----------------------- | -------- | ----------------------------------------------------------------------------------------------------- |
| Emaar Properties PJSC   | EMAAR    | Largest constituent; developer of Burj Khalifa, Downtown Dubai, and Dubai Mall                        |
| Emaar Development PJSC  | EMAARDEV | Subsidiary of Emaar Properties; focused on build-to-sell residential and commercial assets in the UAE |
| Deyaar Development PJSC | DEYAAR   | Mid-size Dubai developer with a diversified residential and commercial portfolio                      |
| Union Properties PJSC   | UPP      | Property development and investment company listed on DFM                                             |

> **Note on weights:** Constituent weights are dynamic — they change continuously with market prices and are reset at each quarterly rebalancing by S\&P DJI. Live weights are displayed in real-time on the Fractit platform and are not published as fixed figures in this documentation.


# NAV Calculation

The Net Asset Value (NAV) is the per-token value of DFMREIT, calculated daily from the marked-to-market value of SPV holdings.

***

### The formula

```
NAV per Token = (Custody Value + Cash Balances − Accrued Liabilities) ÷ Total Token Supply
```

| Component           | Definition                                                                                           |
| ------------------- | ---------------------------------------------------------------------------------------------------- |
| Custody Value       | Marked-to-market value of all constituent shares held by the SPV, using DFM official closing prices  |
| Cash Balances       | Uninvested subscription proceeds and dividend receipts held pending deployment                       |
| Accrued Liabilities | Management fee accruals, broker execution fees, and other operational costs accrued but not yet paid |
| Total Token Supply  | Total number of DFMREIT tokens in circulation at the time of calculation                             |

***

### Indicative vs. official NAV

|                  | Indicative NAV                     | Official NAV                        |
| ---------------- | ---------------------------------- | ----------------------------------- |
| Update frequency | Real-time during DFM trading hours | Daily, after market close           |
| Data source      | Live DFM market prices             | DFM official closing prices         |
| Purpose          | Platform display, AMM reference    | Subscription and redemption pricing |

When DFM is closed, the last published official NAV is shown as the reference value. The AMM market price may trade at a premium or discount to this value — that spread is displayed in real-time on the platform at all times.

***

### Fees in the NAV

| Fee              | Rate       | Treatment                                            |
| ---------------- | ---------- | ---------------------------------------------------- |
| Management fee   | 0.25% p.a. | Accrued daily and reflected in the NAV               |
| Subscription fee | 0.50%      | Deducted at issuance — tokens issued net of this fee |
| Redemption fee   | 0.50%      | Deducted from the payout at the time of redemption   |

The AMM trading fee (0.25% per swap) does not affect the NAV. It is paid directly to Liquidity Providers at the time of each trade.

***

### Premium and discount

The AMM secondary market price may diverge from the indicative NAV. This is normal, particularly outside DFM trading hours.

Natural arbitrage keeps the spread contained over time:

* **Discount (AMM price < NAV):** Profitable to buy cheap tokens on AMM and redeem at NAV during the next window → AMM price rises.
* **Premium (AMM price > NAV):** Profitable to subscribe at NAV during market hours and sell on AMM → AMM price falls.

The current premium or discount is always displayed on the platform before any trade or subscription is confirmed.


# Subscription

Subscription is the primary market process through which a user acquires DFMREIT tokens by depositing CC or USDC

***

### When subscriptions are available

Subscriptions are only available when the **Dubai Financial Market (DFM) is open**.

DFM trading hours: **Sunday – Thursday, 10:00 AM – 2:00 PM (Gulf Standard Time)**

When DFM closes, the subscription window pauses automatically. Users wishing to acquire tokens outside market hours can do so via the Secondary Market.

***

### The subscription flow

**Step 1 — Connect and verify** Connect your Canton-compatible wallet. New users must complete KYC onboarding before proceeding. Only whitelisted wallets can subscribe.

**Step 2 — Select amount** Enter the CC or USDC amount you wish to invest. The platform displays the current market price and the estimated number of DFMREIT tokens you will receive, including the subscription fee.

**Step 3 — Confirm** Confirm the transaction. DFMREIT tokens are delivered to your wallet immediately at the current market price.

***

### What happens after your subscription

Your token delivery is instant. In parallel, Fractit's operations layer processes the subscription off-chain:

| Step      | Action                                                                                                          |
| --------- | --------------------------------------------------------------------------------------------------------------- |
| Off-ramp  | Subscription proceeds are converted to AED via licensed FX partners                                             |
| Execution | Constituent shares are purchased on the DFM via the licensed broker, weighted to the current DFMREI composition |
| Custody   | Purchased shares are transferred to the Fractit-linked SPV and held in institutional custody                    |

This off-chain process does not affect your token holding. It is the mechanism that maintains the 1:1 backing of all tokens in circulation.

***

### Subscription fee

A fee of **0.50%** is applied at the time of issuance. Tokens are issued net of this fee. The fee is shown in the transaction confirmation before you confirm.

***

> **Note:** The price at which you receive tokens is the current market price — not the NAV. These may differ slightly. The platform displays both values before you confirm.


# Secondary Market

Once you hold DFMREIT tokens, you can trade them 24/7 on Fractit's on-chain AMM pool — no order books, no waiting for a counterparty.

***

### Always open

The secondary market operates continuously — including outside DFM trading hours, on weekends, and on public holidays. Trades settle atomically on Canton Network.

***

### How the AMM prices your trade

The pool holds two assets: DFMREIT tokens and USDC/CC. Every trade must maintain the constant product invariant:

```
x · y = k

x = DFMREIT tokens in the pool
y = USDC/CC in the pool
k = constant maintained across all trades
```

When you buy DFMREIT, `x` decreases and `y` increases — price goes up. When you sell, `x` increases and `y` decreases — price goes down. The pool self-balances with every trade, with no operator required.

***

### Premium and discount

During DFM trading hours, the AMM price closely tracks the live indicative NAV, anchored by arbitrage activity.

When DFM is closed, the AMM price may drift above (premium) or below (discount) the last published NAV. **The platform displays the current premium or discount in real-time before every trade.**

This is expected behaviour. See NAV Calculation for how the spread is kept in check over time.

***

### Price impact

Larger trades relative to pool size will move the AMM price more than small ones. This is called **price impact**. The platform displays your estimated price impact before you confirm any trade.

***

### Trading fee

A fee of **0.25% per swap** is applied to every AMM trade. This fee is distributed entirely to Liquidity Providers — it is not retained by Fractit.

***

### Exiting without waiting for a redemption window

The secondary market is always available as an exit route, even when no redemption window is open. You can sell your full position at any time.


# Redemption

Redemption is the process through which a DFMREIT token holder burns their tokens and receives CC or USDC in return via the primary market. vocabulary you need to use Fractit confidently.

***

### Redemption windows

Fractit opens redemption windows **one to two times per week** on pre-announced dates. The schedule is published on the platform in advance.

During an open window:

* Navigate to **Portfolio → Redeem**
* Enter the number of DFMREIT tokens you wish to redeem
* Confirm — tokens are burned and CC or USDC is returned to your wallet immediately
* A redemption fee of **0.50%** is applied at the time of payout

***

### Outside redemption windows

When no redemption window is open, you can still exit your position at any time by selling your tokens on the Secondary Market. The AMM operates 24/7 with no lock-up period.

***

### Redemption vs. AMM sale

|                 | Redemption (primary)            | AMM sale (secondary)  |
| --------------- | ------------------------------- | --------------------- |
| Availability    | Windowed — announced in advance | 24/7                  |
| Price reference | NAV-based                       | AMM market price      |
| Fee             | 2.50%                           | 0.25% per swap        |
| Price impact    | None                            | Depends on pool depth |
| Token outcome   | Burned permanently              | Transferred to buyer  |

The right choice depends on your situation. The AMM gives you immediate exit at any time. Primary redemption gives you NAV-anchored pricing during announced windows.


# How the AMM Works

Fractit's secondary market is powered by a constant product AMM — the same foundational mechanism used across decentralised finance

***

### The constant product model

The pool holds two assets at all times: DFMREIT tokens and a stablecoin (USDC or CC). Every trade must maintain the constant product invariant:

```
x · y = k

x = quantity of DFMREIT tokens in the pool
y = quantity of USDC/CC in the pool
k = a constant, maintained across all trades
```

The price of DFMREIT at any moment is the ratio of `y` to `x`. As demand shifts, the ratio shifts — prices move continuously and predictably with every trade.

***

### A buy, step by step

1. You send USDC/CC into the pool — `y` increases.
2. DFMREIT tokens leave the pool — `x` decreases.
3. The new ratio `y/x` is higher — price has moved up.
4. The constant `k` is preserved throughout.

The reverse happens when you sell: DFMREIT enters the pool, USDC/CC exits, price moves down.

***

### Price impact

Larger trades move the price more. This is a direct function of your trade size relative to total pool size. A trade representing 1% of the pool will have meaningfully more price impact than one representing 0.01%.

The platform always displays your estimated price impact before you confirm.

***

### No order books, no counterparties

The AMM requires no matching engine and no counterparty on the other side of your trade. The pool itself is always your counterparty. This means:

* The market is always open — no minimum number of participants required
* Execution is atomic and deterministic
* There are no partial fills or pending orders

***

### How the AMM stays anchored to NAV

The AMM price is kept close to the DFMREIT indicative NAV by natural arbitrage incentives:

**Discount (AMM < NAV):** Buy tokens cheaply on AMM → redeem at NAV at the next window → profit. This buying pressure pushes the AMM price back up.

**Premium (AMM > NAV):** Subscribe for tokens at NAV during market hours → sell at a premium on AMM → profit. This selling pressure pushes the AMM price back down.

This mechanism runs without coordination. No admin, no oracle, no rebalancer required.


# Liquidity Providers

Fractit's AMM pool is seeded and maintained entirely by Liquidity Providers (LPs). There is no protocol-owned liquidity.

***

### Who can be an LP

Any KYC-verified, whitelisted participant can become an LP by depositing equal values of DFMREIT tokens and USDC/CC into the AMM pool.

***

### What LPs earn

LPs earn a share of the **0.25% trading fee** collected on every swap that passes through the pool.

Fee earnings are distributed pro-rata to LPs according to their share of the pool at the time of each trade. There is no separate reward token — all LP returns are denominated in the pool assets and accumulated fees.

***

### Adding liquidity

1. Navigate to **Markets → DFMREIT → Add Liquidity**
2. Enter the amount of USDC/CC you want to deposit
3. The platform calculates the equivalent DFMREIT amount required to maintain the pool ratio
4. Confirm — your LP position is recorded on-ledger immediately

You receive LP tokens representing your proportional share of the pool. These are used to track your share of accumulated fees and are required to withdraw.

***

### Removing liquidity

1. Navigate to **Portfolio → LP Positions**
2. Select your DFMREIT/USDC pool position
3. Enter the amount you wish to withdraw
4. Confirm — DFMREIT and USDC/CC are returned to your wallet, including your share of accumulated fees

There is no lock-up period. Liquidity can be removed at any time.

***

### Impermanent loss

As the AMM price of DFMREIT moves relative to USDC/CC, the pool automatically rebalances between the two assets to maintain the constant product. This means an LP's position changes composition over time — holding more of the asset that has fallen in relative price and less of the one that has risen.

The difference between holding LP tokens versus holding the two assets separately is called **impermanent loss**. It is called impermanent because if the price ratio returns to its original level, the loss disappears. However, if you remove liquidity at a different price ratio from when you entered, the loss is realised.

LP trading fees partially or fully offset impermanent loss depending on pool volume.

***

### Risk summary

| Risk                | Description                                                          |
| ------------------- | -------------------------------------------------------------------- |
| Impermanent loss    | Pool rebalancing causes composition drift relative to a static hold  |
| Smart contract risk | Canton-native contracts may contain undiscovered vulnerabilities     |
| Liquidity risk      | In low-volume conditions, fee income may not offset impermanent loss |


# Why Canton

Fractit is built natively on Canton Network. This is not an arbitrary technology choice — it is a prerequisite for what Fractit is trying to do.

***

### Three properties that matter

#### Privacy by default

On Canton, transaction details are visible only to the authorised parties of each contract — not broadcast to all network participants. For a compliant financial product with KYC-gated access, this is non-negotiable. Subscription amounts, portfolio positions, and trading activity are not publicly visible on-chain.

#### Sub-second finality

Canton provides deterministic transaction settlement with sub-second finality. There are no probabilistic confirmation delays, no reorg risks, and no uncertainty about whether a transaction has settled. When a DFMREIT subscription confirms, it is final.

#### DAML smart contract execution

DAML is a purpose-built smart contract language designed for financial agreements. Unlike general-purpose bytecode languages, DAML has native support for obligations, rights, and complex multi-party workflows. It is the right tool for encoding the precise lifecycle of a financial product.

***

### Why not EVM?

EVM chains broadcast all transaction data publicly by default, have probabilistic finality, and use general-purpose smart contract languages not optimised for financial contract semantics. None of these properties are compatible with a compliant, institutional-grade index product.

Canton was built specifically for regulated financial markets. Fractit is built on the right foundation for what it is.

***

### Canton in the Fractit context

| Property              | Benefit for Fractit                                                             |
| --------------------- | ------------------------------------------------------------------------------- |
| Privacy by default    | User positions and transaction amounts are not publicly visible                 |
| Sub-second finality   | Subscriptions, trades, and redemptions settle immediately and deterministically |
| DAML contracts        | Every lifecycle event is governed by a formally specified financial contract    |
| CC as native asset    | Fractit products participate directly in Canton-native market activity          |
| Whitelist enforcement | Transfer restrictions are enforced at the contract layer — not just the UI      |


# On-Ledger Architecture

Every material event in the DFMREIT lifecycle is recorded as an on-ledger transaction governed by DAML contracts on Canton Network.

***

### What lives on-ledger

| Event                         | On-ledger record                                                                            |
| ----------------------------- | ------------------------------------------------------------------------------------------- |
| Token issuance (subscription) | New DFMREIT holding recorded deterministically at the moment of issuance                    |
| Token transfer                | Ownership state updated; whitelist and transfer restriction checks enforced by the contract |
| AMM swap                      | Every buy and sell through the pool recorded — price, quantity, and LP fee distribution     |
| LP deposit                    | LP token issuance and pool share recorded                                                   |
| LP withdrawal                 | LP token burn, pool share reduction, and fee distribution recorded                          |
| Token redemption              | DFMREIT burn and CC/USDC release recorded atomically                                        |

***

### DAML contracts

Fractit uses DAML contracts to govern every lifecycle stage. A DAML contract is not just a state record — it is a formal specification of who has rights to do what, under which conditions, and what happens when those rights are exercised.

For DFMREIT, the key contracts govern:

* **Issuance rights** — which entities may mint new DFMREIT tokens and under what conditions
* **Transfer restrictions** — whitelist validation enforced on every transfer, regardless of the interface used
* **Redemption obligations** — the protocol's obligation to redeem tokens for CC/USDC during open windows
* **LP pool state** — the invariant relationship between pool assets and LP share tokens

***

### Whitelist enforcement

The Canton compliance module enforces whitelist checks at the contract layer. This means:

* A DFMREIT token cannot be transferred to a non-whitelisted wallet under any circumstances
* Jurisdiction-restricted wallets are blocked from receiving tokens even if they were previously whitelisted
* Compliance status is checked on every transfer — not cached from a previous check

This enforcement is independent of the Fractit application UI. It is not possible to bypass it by interacting with the contract directly.

***

### Settlement currencies

Fractit supports two settlement currencies:

| Currency         | Type                 | Use                                    |
| ---------------- | -------------------- | -------------------------------------- |
| CC (Canton Coin) | Canton-native asset  | Subscriptions, redemptions, AMM trades |
| USDC             | Stablecoin on Canton | Subscriptions, redemptions, AMM trades |

Both currencies settle on Canton Network with the same sub-second finality and deterministic guarantees. Supporting CC enables Fractit products to participate directly in Canton-native market activity and composability with other Canton applications.

***

### Auditability

Every mint, swap, transfer, and redemption is recorded immutably on Canton and mirrored to an institutional ledger. This creates a complete, verifiable audit trail that is independent of Fractit's application servers. Token holders, auditors, and regulators can verify the full history of any token or position from the ledger record alone.


# Regulatory Framework

Fractit's index markets product is designed to operate within the VARA virtual-asset regulatory framework for entities issuing virtual assets in Dubai outside DIFC.

***

### VARA orientation

VARA (Virtual Asset Regulatory Authority) is Dubai's regulator for virtual assets. VARA's framework establishes requirements for VA issuance, AML/CFT compliance, eligible investor criteria, and permitted activities.

Fractit's compliance architecture is built to satisfy these requirements from the ground up — not retrofitted. Regulatory controls are enforced at the Canton contract execution layer, meaning they are active regardless of how or where a user interacts with their tokens.

***

### Compliance is on-chain

On most platforms, compliance is a UI-layer feature — something enforced at the application interface but bypassable at the contract level. On Fractit, this is not the case.

Whitelist checks, transfer restrictions, and jurisdiction blocks are all enforced by DAML contracts on Canton. A token cannot be transferred, subscribed for, or redeemed unless the relevant compliance conditions are met at the contract layer.

***

### Partner stack

Fractit operates through a chain of licensed and regulated partners:

| Partner Type            | Role                                                                 |
| ----------------------- | -------------------------------------------------------------------- |
| Licensed broker         | Market access — executes share purchases on DFM on behalf of the SPV |
| Institutional custodian | Safekeeping of constituent shares in the SPV                         |
| Securities depository   | Registration and settlement of share holdings                        |
| Banking partner         | Fiat and FX operations for subscription and redemption flows         |
| Compliance vendor       | KYC/AML processing, sanctions screening, and ongoing monitoring      |

Every off-chain component of the product is governed by appropriate regulatory oversight through these partners.

***

### Future markets

Each new index market added to Fractit — starting with ALDREIT (Abu Dhabi), SGREIT (Singapore), and HKREIT (Hong Kong) — will be mapped to the regulatory framework of its respective jurisdiction before launch. The compliance architecture and on-chain enforcement model is designed to accommodate multiple regulatory regimes within the same protocol layer.


# KYC & Eligibility

All users must complete KYC/AML verification before they can subscribe, trade, or redeem on Fractit.

***

### Who can participate

Fractit is intended for:

* Retail investors seeking compliant on-chain access to listed real estate index exposure
* Crypto-native investors seeking regulated index products on Canton Network
* Institutional participants requiring compliant, auditable index token exposure
* Secondary market participants looking for flexible, continuously tradable access to index-linked products

Access is subject to eligibility screening. Not all jurisdictions are permitted. See Jurisdiction Controls.

***

### KYC onboarding process

All users must complete the following before any activity is permitted:

| Step                  | Requirement                                                     |
| --------------------- | --------------------------------------------------------------- |
| Identity verification | Government-issued photo ID (passport or national ID card)       |
| Liveness check        | Real-time selfie verification to confirm document ownership     |
| PEP screening         | Check against Politically Exposed Persons lists                 |
| Sanctions screening   | Check against global sanctions lists (OFAC, UN, EU, and others) |
| AML risk scoring      | Risk-based assessment of the user profile                       |
| Jurisdiction check    | Confirmation that the user's jurisdiction is not restricted     |

Onboarding is conducted by Fractit's approved compliance vendor. Verification typically completes within minutes.

***

### Ongoing monitoring

Active users are subject to continuous monitoring including:

* Periodic re-verification of identity documents
* Ongoing sanctions and PEP screening
* Transaction monitoring for suspicious activity patterns
* Wallet screening before any new activity

***

### Whitelist

On successful completion of KYC, the user's Canton wallet address is added to the on-chain whitelist. Only whitelisted wallets may:

* Hold DFMREIT tokens
* Subscribe for new tokens
* Transfer tokens to other wallets
* Redeem tokens for CC or USDC

The whitelist is enforced at the DAML contract layer on Canton — not just at the application interface. Transfers to non-whitelisted wallets are rejected by the contract regardless of the interface used.

***

### Multiple wallets

If you wish to use more than one wallet address with your Fractit account, each address must be individually whitelisted. Contact support to add an additional wallet to your verified account.


# Jurisdiction Controls

Fractit enforces jurisdiction restrictions at both the onboarding layer and the Canton contract layer.

***

### Restricted jurisdictions

**US persons and entities are not permitted to access this product.**

Additional restricted jurisdictions may be added in accordance with applicable regulatory requirements and sanctions regimes. The current list of restricted jurisdictions is enforced at:

1. **Onboarding** — jurisdiction is checked during KYC. Users in restricted jurisdictions cannot complete onboarding and will not be whitelisted.
2. **Contract layer** — Canton's compliance module checks jurisdiction status on every transfer. A wallet associated with a restricted jurisdiction cannot receive tokens even if it was previously whitelisted.

***

### How restrictions are enforced

Jurisdiction restrictions are not UI-level controls. They are encoded in the DAML compliance module on Canton Network. This means:

* Restrictions cannot be bypassed by interacting with contracts directly
* A change in a user's jurisdiction status (e.g. sanctions designation) can trigger automatic transfer restriction at the contract level
* New jurisdictions can be added to the restricted list and enforced immediately on-chain

***

### Future markets

As Fractit expands to new index markets — ALDREIT (Abu Dhabi), SGREIT (Singapore), and HKREIT (Hong Kong) — each product will carry its own jurisdiction controls mapped to the regulatory requirements of that market. The same on-chain enforcement model applies across all products.

***

> **Note:** Users are solely responsible for determining whether their participation in Fractit is lawful in their jurisdiction. Nothing in this documentation constitutes legal advice.


# DFMREIT — Live

> **Status: Live on Canton Network**

DFMREIT is Fractit's first live index token — providing on-chain exposure to the Dubai Financial Market Real Estate Sector Index (DFMREI).

***

### What it tracks

DFMREIT tracks the **DFM Real Estate Sector Index (DFMREI)** — a sector index published by the Dubai Financial Market, measuring the price performance of DFM-listed companies classified under the GICS Real Estate sector.

The index is calculated in real-time by **S\&P Dow Jones Indices** on behalf of the DFM, using a free-float-adjusted, market-capitalisation weighted methodology with a 10% single-constituent weight cap.

See Index Methodology for the full methodology.

***

### Index constituents

The DFMREI currently consists of four DFM-listed companies:

| Company                 | Ticker   |
| ----------------------- | -------- |
| Emaar Properties PJSC   | EMAAR    |
| Emaar Development PJSC  | EMAARDEV |
| Deyaar Development PJSC | DEYAAR   |
| Union Properties PJSC   | UPP      |

Live constituent weights are displayed in real-time on the platform and change continuously with market prices and at each quarterly rebalancing.

***

### Product details

|                       |                                                                    |
| --------------------- | ------------------------------------------------------------------ |
| Token name            | DFMREIT                                                            |
| Reference index       | DFM Real Estate Sector Index (DFMREI)                              |
| Exchange              | Dubai Financial Market (DFM)                                       |
| Replication method    | Full — actual constituent shares in SPV custody                    |
| Settlement currencies | CC (Canton Coin) and USDC                                          |
| Network               | Canton Network                                                     |
| Subscription          | Available during DFM trading hours (Sun–Thu, 10:00 AM–2:00 PM GST) |
| Secondary market      | 24/7 AMM pool                                                      |
| Redemption            | Weekly windowed — dates announced in advance                       |

***

### Fee structure

| Fee              | Rate                         |
| ---------------- | ---------------------------- |
| Subscription fee | 0.50%                        |
| Redemption fee   | 2.50%                        |
| Management fee   | 0.25% per annum              |
| AMM trading fee  | 0.25% per swap (paid to LPs) |

***

### How to get started

→ Quickstart — connect, verify, and subscribe in minutes.


# Coming Soon

Fractit is expanding its index markets across the Gulf and Asia-Pacific regions. The following markets are in active development, with regulatory mapping and licensed partner diligence underway for each.

***

### ALDREIT — Abu Dhabi Real Estate Index

|                 |                                     |
| --------------- | ----------------------------------- |
| Token           | ALDREIT                             |
| Reference index | Abu Dhabi real estate sector index  |
| Exchange        | Abu Dhabi Securities Exchange (ADX) |
| Expected launch | Q3 2026                             |

ALDREIT will provide on-chain exposure to the ADX-listed real estate sector — the next major real estate capital market in the UAE after Dubai. The product will follow the same full replication model as DFMREIT, with regulatory mapping to the ADGM and UAE frameworks.

***

### SGREIT — Singapore Real Estate Index

|                 |                                    |
| --------------- | ---------------------------------- |
| Token           | SGREIT                             |
| Reference index | Singapore real estate sector index |
| Exchange        | Singapore Exchange (SGX)           |
| Expected launch | Q4 2026                            |

SGREIT will bring Singapore's listed real estate sector — one of the deepest and most liquid REIT markets in Asia — on-chain via Canton. Regulatory mapping to the MAS framework is underway.

***

### HKREIT — Hong Kong Real Estate Index

|                 |                                         |
| --------------- | --------------------------------------- |
| Token           | HKREIT                                  |
| Reference index | Hong Kong real estate sector index      |
| Exchange        | Hong Kong Exchanges and Clearing (HKEX) |
| Expected launch | Q1 2027                                 |

HKREIT will provide on-chain exposure to Hong Kong's listed real estate sector via HKEX-listed constituent replication. Regulatory mapping to the SFC framework is underway.

***

> Want to be notified when a new market launches? Visit [markets.fractit.com](https://markets.fractit.com) and click **Notify Me** on any upcoming market.


# Fee Structure

All fees applied across Fractit's index markets products — in one place.

***

### DFMREIT fees

| Fee              | Rate            | When Applied                                                  |
| ---------------- | --------------- | ------------------------------------------------------------- |
| Subscription fee | 0.50%           | At the time of primary market token issuance                  |
| Redemption fee   | 2.50%           | Deducted from payout at the time of token burn                |
| Management fee   | 0.25% per annum | Accrued daily and reflected in the NAV                        |
| AMM trading fee  | 0.25% per swap  | Applied on every secondary market swap — paid entirely to LPs |

***

### Notes

* All fees are disclosed in transaction confirmations before you confirm any action.
* The subscription and redemption fees are deducted before token issuance or payout calculation.
* The management fee is not charged separately — it is accrued daily and reflected in the NAV per token.
* The AMM trading fee is not retained by Fractit. It is distributed entirely to Liquidity Providers.
* FX conversion margin may apply when subscribing in USDC, as underlying shares are denominated in AED. The conversion rate and margin are displayed transparently at the time of subscription.


# Roadmap

Fractit's roadmap is structured around sequential market launches and progressive protocol development.

***

### Market expansion

| Phase   | Token   | Market                                             | Status         |
| ------- | ------- | -------------------------------------------------- | -------------- |
| Now     | DFMREIT | Dubai Financial Market — Real Estate Sector        | Live           |
| Q3 2026 | ALDREIT | Abu Dhabi Securities Exchange — Real Estate Sector | In development |
| Q4 2026 | SGREIT  | Singapore Exchange — Real Estate Sector            | In development |
| Q1 2027 | HKREIT  | Hong Kong Exchanges — Real Estate Sector           | In development |

***

### Protocol development

**AMM depth mechanism** As AUM and trading volumes grow, Fractit will introduce an enhanced LP incentive framework and deeper liquidity pool infrastructure to improve secondary market depth and reduce price impact for larger trades.

***

> This roadmap reflects current plans and is subject to change based on regulatory developments, market conditions, and operational readiness. Formal launch of each market requires completion of regulatory mapping, licensed partner diligence, and official product documentation for that jurisdiction.


# FAQ

Answers to the most common questions about Fractit.

***

**What wallets can I use?** Fractit runs on Canton Network — not Ethereum or any EVM chain. You must use a Canton-compatible wallet. MetaMask and all other EVM wallets are not supported. Loop Wallet is recommended for most users.

***

**What currency do I need to subscribe?** Fractit accepts CC (Canton Coin) and USDC for subscriptions, AMM trades, and redemptions. The underlying constituent shares are denominated in AED — FX conversion is handled by Fractit's licensed banking partner and the conversion margin is disclosed transparently at the time of subscription.

***

**Can I lose more than I invest?** You cannot lose more than the value of your token holding. DFMREIT is not leveraged. There are no margin calls, no liquidations, and no funding rates. Your downside is limited to the performance of the underlying DFMREI index plus applicable fees.

***

**Why can I only subscribe during certain hours?** Subscriptions are tied to DFM trading hours because the underlying shares must be purchased on the DFM immediately after a subscription is processed. When the DFM is closed, new subscriptions cannot be fulfilled without taking on unhedged price risk. The secondary AMM market is always available for buying and selling tokens outside market hours.

***

**What is the difference between subscribing and buying on the AMM?** Subscription is the primary market — you receive newly issued tokens, backed by shares purchased by the SPV. AMM purchase is the secondary market — you buy tokens from another holder via the liquidity pool. Both give you DFMREIT tokens, but subscription is only available during DFM hours, while the AMM operates 24/7.

***

**How often is the NAV updated?** The indicative NAV is updated in real-time during DFM trading hours using live market prices. The official NAV is calculated and published daily after DFM market close.

***

**When can I redeem my tokens?** Redemption windows open one to two times per week on pre-announced dates. Dates are published on the platform in advance. Outside windows, you can sell your tokens on the secondary AMM market at any time.

***

**What happens to dividends paid by the underlying companies?** Cash dividends received by the SPV from constituent shareholdings are held as cash within the SPV and reflected in the Cash Balances component of the NAV calculation. They are deployed into additional constituent shares or distributed as part of the redemption value, depending on the product terms.

***

**Is the product audited?** The Canton-native DAML contracts governing DFMREIT are developed using audited templates. Independent security audit reports will be published in full when complete. The SPV custody holdings are subject to third-party reconciliation and disclosed to token holders.

***

**What happens if the DFM suspends a constituent stock?** If a constituent stock is suspended by the DFM, S\&P DJI handles the corporate event in accordance with the DFM Index Procedures. Fractit's SPV operations team follows the same methodology. The impact on the NAV is disclosed to token holders as part of the regular reconciliation reporting.


# Glossary

All key terms used in Fractit documentation.

***

| Term                        | Definition                                                                                                                                        |
| --------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------- |
| **AMM**                     | Automated Market Maker — prices assets algorithmically using a constant product formula. No order book required.                                  |
| **Canton Coin (CC)**        | Canton Network's native digital asset. One of Fractit's two settlement currencies.                                                                |
| **Canton Network**          | The privacy-preserving, enterprise-grade distributed ledger on which Fractit is built.                                                            |
| **Constant Product**        | The AMM pricing invariant: `x · y = k`. Maintained across every trade.                                                                            |
| **Custody Value**           | The marked-to-market value of all constituent shares held by the SPV, used in NAV calculation.                                                    |
| **DAML**                    | The smart contract language used on Canton Network. Purpose-built for financial agreements.                                                       |
| **DFMREI**                  | DFM Real Estate Sector Index — the reference index tracked by DFMREIT. Calculated by S\&P DJI on behalf of the Dubai Financial Market.            |
| **DFMREIT**                 | Fractit's first live index token — providing 1:1 on-chain exposure to the DFMREI.                                                                 |
| **Discount**                | When the AMM market price of an index token is below its indicative NAV.                                                                          |
| **Free Float Factor (FFF)** | The multiplier applied to a company's market capitalisation to reflect only freely tradeable shares in index weight calculations.                 |
| **Full Replication**        | The method of backing an index token by purchasing all actual constituent shares in their target index weights.                                   |
| **GICS**                    | Global Industry Classification Standard — the sector classification framework used by the DFM to categorise listed companies.                     |
| **Impermanent Loss**        | The difference in value between holding LP tokens versus holding the underlying assets separately, caused by price ratio changes in the AMM pool. |
| **Index Token**             | A Canton-native token representing 1:1 economic exposure to a basket of exchange-listed shares.                                                   |
| **Indicative NAV**          | Real-time estimated NAV per token, calculated using live market prices during trading hours.                                                      |
| **KYC**                     | Know Your Customer — identity verification and AML screening required before any activity on Fractit.                                             |
| **LP Token**                | A token issued to Liquidity Providers representing their proportional share of an AMM pool.                                                       |
| **Liquidity Provider (LP)** | A participant who deposits assets into the AMM pool to earn trading fees.                                                                         |
| **Management Fee**          | 0.25% per annum, accrued daily and reflected in the NAV.                                                                                          |
| **NAV**                     | Net Asset Value — the per-token value of DFMREIT, calculated from SPV holdings.                                                                   |
| **Official NAV**            | The NAV calculated daily after DFM market close using official closing prices.                                                                    |
| **Premium**                 | When the AMM market price of an index token is above its indicative NAV.                                                                          |
| **Price Impact**            | The effect of a trade on the AMM pool price, proportional to trade size relative to pool size.                                                    |
| **Redemption Fee**          | 0.50% deducted from the payout at the time of token redemption.                                                                                   |
| **Redemption Window**       | A pre-announced period during which token holders can burn DFMREIT for CC or USDC at NAV-based pricing.                                           |
| **Rebalancing**             | The quarterly process by which index constituent weights are reset and SPV holdings are adjusted to match.                                        |
| **S\&P DJI**                | S\&P Dow Jones Indices — the independent calculation agent for DFM Indices.                                                                       |
| **SPV**                     | Special Purpose Vehicle — the legal entity that holds constituent shares in custody on behalf of token holders.                                   |
| **Subscription**            | The primary market process of acquiring index tokens by depositing CC or USDC.                                                                    |
| **Subscription Fee**        | 0.50% applied at the time of primary market token issuance.                                                                                       |
| **USDC**                    | USD-pegged stablecoin accepted by Fractit for subscriptions, trades, and redemptions.                                                             |
| **VARA**                    | Virtual Asset Regulatory Authority — Dubai's regulator for virtual assets. Fractit is designed to operate within VARA's framework.                |
| **Whitelist**               | The on-chain list of KYC-verified wallets eligible to hold, transfer, and trade index tokens.                                                     |


# Risk Disclosures

Investing in DFMREIT involves significant risks. The following is not an exhaustive list. Prospective participants should review this page carefully and obtain independent financial and legal advice before investing.

***

### Tracking error

The on-chain token price may diverge from the reference DFM index value due to fees, timing differences between subscription and share execution, rebalancing costs, FX conversion, and operational constraints. Tracking error is monitored daily and disclosed in reconciliation reports.

***

### Liquidity mismatch

DFM-listed constituent shares trade only during exchange hours. DFMREIT secondary market trading is available 24/7 via the AMM pool. The AMM price may deviate from the indicative NAV when the underlying market is closed. Premium and discount information is displayed in real-time on the platform at all times.

***

### FX risk

Users subscribe in USDC or CC. The underlying constituent shares are denominated in AED. FX conversion costs and AED/USD rate movements will affect the effective NAV of the token. The FX conversion margin is disclosed transparently at the time of subscription.

***

### Regulatory risk

The product is designed to operate within the VARA virtual-asset regulatory framework. Regulatory requirements may change. Licensing conditions, restrictions on eligible investors, and permitted activities may be updated by authorities. The product may be suspended or restricted by regulatory authorities at any time.

***

### Custody risk

The underlying shares are held in institutional custody by the appointed custodian and depository. Custody failures, depository access issues, or operational failures at the custodian could affect the ability to redeem tokens for their expected value.

***

### Concentration risk

The DFMREI consists of a small number of listed companies. The index is heavily influenced by its largest constituents. Index constituent changes, delistings, or material corporate events may materially affect the NAV. Concentration in a single sector and a single market also means broader DFM or UAE market movements have a direct impact.

***

### Smart contract risk

Canton-native DAML contracts governing DFMREIT may contain undiscovered vulnerabilities. Audits reduce but do not eliminate this risk. Smart contracts cannot be patched without a protocol upgrade. A vulnerability could result in partial or complete loss of funds in the protocol.

***

### Counterparty risk

The product depends on a licensed broker, institutional custodian, securities depository, banking partner, and compliance vendor. Failure or operational disruption of any one counterparty could disrupt subscriptions, redemptions, or rebalancing operations.

***

### Market risk

The value of DFMREIT reflects the performance of DFM-listed real estate companies. Share prices in this sector are influenced by global market sentiment, interest rate expectations, UAE economic conditions, property market cycles, and company-specific events. The index can fall significantly in value. Past performance does not indicate future results.


# Disclaimer

Please read this disclaimer carefully before using Fractit or interacting with any index token product.

***

> **Important:** Fractit's index markets product involves significant financial risks including tracking error, liquidity mismatch, FX risk, regulatory risk, and counterparty risk. Nothing in this documentation constitutes financial advice or a solicitation to invest.

***

### 1. Product description

Fractit Index Markets offers on-chain access to listed real estate sector index exposure through Canton-native index tokens. Each token is issued by a Fractit-linked SPV and is designed to track the economic performance of the relevant reference index through full replication of underlying exchange-listed constituent shares held in institutional custody.

The user is not buying the reference index directly. The user is not buying listed shares directly. The user is buying an on-chain token that represents economic exposure to a fully replicated basket of underlying exchange-listed shares held off-chain by the SPV.

***

### 2. Not financial advice

Nothing in this documentation, on the Fractit platform, or in any communication from Fractit constitutes financial, legal, tax, or investment advice. All investment decisions are made solely at the user's own risk and discretion. Users should seek independent professional advice before investing.

***

### 3. Index tokens are not securities

Index tokens issued by Fractit are not securities, investment contracts, or units in a collective investment scheme under any jurisdiction's laws, unless explicitly stated otherwise by applicable regulatory authority. Users are solely responsible for determining the legal classification of these products in their own jurisdiction.

***

### 4. Restricted persons

This product is not available to US persons or entities. Additional restricted jurisdictions may apply. Users in restricted jurisdictions who access the platform in breach of these restrictions do so entirely at their own risk and without any recourse against Fractit.

***

### 5. No guarantee of returns

Past performance of any index, constituent company, or index token does not indicate future results. The value of index tokens may go up or down. Users may receive back less than they invested.

***

### 6. Smart contract and technology risk

Fractit's Canton-native DAML contracts are developed with care and are subject to independent security audits. However, no audit guarantees the complete absence of vulnerabilities. There is always a risk that a technical vulnerability could result in partial or complete loss of funds. Users participate in this product with full acknowledgement of this risk.

***

### 7. Regulatory risk

The product operates under the VARA virtual-asset framework and is subject to regulatory change. Fractit reserves the right to suspend, restrict, or modify the product in response to regulatory requirements at any time.

***

### 8. Formal launch notice

This documentation describes a product that has been launched for DFMREIT and is in development for subsequent markets. Formal launch of each new market requires UAE or relevant local legal counsel, full regulatory mapping, licensed partner diligence, and official product documentation specific to that market before any public issuance or investor solicitation.

***

### 9. Use at your own risk

THE FRACTIT PROTOCOL AND INDEX TOKENS ARE PROVIDED "AS IS" WITHOUT WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED. NO DEVELOPER, ENTITY, OR PARTNER INVOLVED IN CREATING OR OPERATING FRACTIT WILL BE LIABLE FOR ANY CLAIMS OR DAMAGES ASSOCIATED WITH YOUR USE OF THE PROTOCOL, INCLUDING ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, OR CONSEQUENTIAL DAMAGES OR LOSS OF ANY KIND.

FRACTIT RESERVES THE RIGHT TO MODIFY THE PROTOCOL, ITS PARAMETERS, FEES, AND THESE TERMS AT ANY TIME. CONTINUED USE OF THE PLATFORM CONSTITUTES ACCEPTANCE OF ANY MODIFICATIONS.

***

*Last updated: April 2026 · markets.fractit.com*


# Brand Kit

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