# FAQ

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**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.

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**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.

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**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.

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**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.

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**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.

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**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.

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**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.

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**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.

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**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.

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**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.


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