Token Pricing

Valuation Approach

RYT value directly corresponds to the net asset value of the underlying shares held in the Underlying Fund. This creates transparent pricing aligned with the performance of the underlying investment portfolio managed by Huaxia Fund Management.

The Underlying Fund calculates net asset value regularly in accordance with its offering documents and Cayman Islands regulatory requirements. Net asset value reflects current valuations of portfolio investments, incorporating all fund expenses and liabilities. These calculations are subject to oversight by the fund administrator and auditor.

Price Information

Current net asset value information for the underlying shares is available through the Platform. The Company publishes this information promptly following receipt from the Underlying Fund to ensure tokenholders have access to up-to-date pricing.

The one-to-one mapping between RYTs and underlying shares means each RYT should theoretically represent the same value as one underlying share at any given net asset value calculation date.

Transaction Costs

The RYT structure is designed to provide cost-efficient access to underlying investments. The Company does not charge management fees or performance fees to tokenholders. Transaction Costs cover operational expenses associated with the token infrastructure and currency conversions when applicable.

Transaction Costs include fees charged by the Technology Service Provider for platform operation and token administration, blockchain network fees for minting and burning transactions, and currency conversion costs when subscriptions or redemptions involve exchange between fiat and cryptocurrency.

These costs are transparently disclosed during subscription and redemption processes. The Company works to minimize Transaction Costs while maintaining high-quality operational standards.

Market Dynamics

As RYTs are transferable on blockchain networks, secondary market trading may develop among investors. Such markets would provide additional liquidity beyond the redemption mechanism. Market prices in any secondary trading would be determined by supply and demand among market participants.

The transparent linkage between RYTs and underlying share net asset value provides a clear reference point for price discovery. Market participants can access net asset value information through the Platform to inform their trading decisions.