Architecture

How $RWY actually runs.

Conventional custody, on chain primitives. The token, share register, redemption queue, and lending pool are on chain. Stocks, fund interests, and options live with regulated custodians. What makes the basket work is the structure of the sleeves and how the on chain primitives are wired to verified holders.

The counterparty stack

• Issuer. Navmont Automated Strategies Inc. Operates the rules, instructs trades, does not custody.
• Token and share register. Superstate FundOS. Mints and burns at NAV, enforces the verified holder allowlist on every transfer.
• Public stock and option custody. Alpaca (FINRA / SIPC). Holds the public sleeve and executes the per position option hedges.
• Private fund custody. Anchorage Digital. Federally chartered, OCC national trust charter.
• NAV calculation. NAV Fund Services. Strikes daily from broker, custodian, money market, and option marks.
• Auditor. Ernst & Young LLP. Annual audit, quarterly review.

System flows

Subscription

USDC in. Superstate FundOS mints RWY at NAV. The allocator deploys USDC into target weights across the four sleeves and places hedges against new positions automatically.

Hedging and rebalancing

Each position triggers a hedge sizing calculation. Public hedges (puts, put spreads, underperformance options) are placed via Alpaca. The tail overlay rebalances monthly. Tenors roll on schedule by an automated roll engine.

Distribution

Underlying yield flows back into the basket. Monthly, NAV Fund Services strikes accrued income and the basket distributes it to holders in USDC.

Redemption and liquidity

RWY is a Reg D 506(c) and Reg S security. Transfers are allowlisted at the token contract, so the token cannot trade on permissionless venues. All exit routes happen inside the verified holder perimeter.

Most tokenized funds force a binary choice: 30 to 90 day windows, or instant with a flat fee. RWY structures liquidity as four layers, prioritized cheapest first, with a fifth path reserved for stress.

1. USDC borrow against the token. 24/7. No exit. No fee.

Most short term liquidity demand is cashflow, not exit. Holders borrow USDC against RWY in the on chain lending pool. Position stays open, distributions keep accruing, no NAV is realized. Works nights and weekends because the pool does not depend on market hours.

2. Subscription matching. Continuous. NAV. No fee.

New USDC subs match against pending redemption intent at the day's NAV before any underlying is touched. Free both sides. In a healthy basket, most queued redemptions clear via match alone.

3. Instant burn. Same block. 1 percent fee.

Burns RWY, pays USDC the same block, drawn from the cash buffer. The 1% fee accrues to NAV; remaining holders are paid for the buffer capacity the exit consumes. Two gates:

• Buffer floor. Pauses when the buffer hits its hedge collateral floor. Standard queue stays open.
• Weekend cap. Stocks settle T+1, market hours only, so the buffer cannot be replenished over the weekend. The buffer is auto topped at Friday close to a pre sized cap. Once exhausted, intent routes to layer 4 and settles when markets reopen.

4. Standard queue. T+30. NAV. No fee.

Queued at the day's NAV, settled in 30 days, funded by routine public sleeve liquidation across the window. Always open, accepts intent 24/7. Gates extend beyond 30 days only under sustained outflow that exceeds buffer plus public sleeve capacity.

Stress mode. Hedge monetization, not underlying liquidation.

In a real drawdown, the hedge sleeve is the liquidity source. Per position hedges mark to market faster than the private fund underlying repriced. Monetizing the hedge crystallizes the protection while the underlying is still smoothing. That cash funds redemptions, then the protocol buys back hedge cover at the new lower volatility. The private sleeve is never the source of redemption liquidity. This is the failure mode that gates other tokenized private fund baskets in stress.