NetNet Capital Management™

NetNet Capital Management issues NET, a reserve-backed instrument. The treasury holds the USDG that stands behind it, stakers receive a distribution every eight hours, and every rule below is fixed in code rather than in the discretion of a committee.

The instrument

NET is a fungible token. Each one is entitled to the reserve value standing behind it, and that value may never be set below 1 USDG by any action of the Manager. Supply expands only when the treasury takes in reserves and contracts when the treasury retires what it buys back.

The reserve

Subscriptions and fees settle into USDG in the treasury contract. Idle balances are lent through Morpho and the interest accrues to the treasury, not to the Manager. A haircut is applied to the lent portion before it is counted as backing, so the published figure is the conservative one.

The distribution

Staked NET becomes sNET, a rebasing receipt whose balance grows at every epoch. The rate is a function of the premium to backing and is throttled at every epoch so that the floor cannot be breached to pay a dividend. No distribution is ever paid out of reserves that would take backing below 1 USDG per NET.

The buyback

If NET trades below its backing, the treasury bids for it and retires what it buys. The bid is funded from reserves and reduces supply, which raises the backing behind every NET that remains. The bid has stood since the market opened.

The fee

Buys and sells on the market pay 5 percent. Wallet-to-wallet transfers pay nothing. Bond subscriptions settle away from the market and pay no trading fee, which is most of the reason a bond prices better than a purchase. The schedule is set out in FEES.HTM.

The Manager

The Manager publishes figures, operates the desks and may deploy the RWA Sleeve in adverse conditions. The Manager cannot mint NET without reserves, cannot lower the floor, cannot pause a redemption and cannot reach into a shareholder wallet.

Documents referred to

• TREASURY.HTM, how the reserves are held and valued
• DIVIDEND.HTM, the distribution formula and its cap
• RWBONDS.HTM, the bond desk and the vest
• FEES.HTM, the trading fee schedule
• RISKS.HTM, the risk disclosures

The treasury is a contract, not an account at a bank. Every balance it holds can be read by anyone at any hour, and the figures published on this site are read from it directly.

Composition of reserves

Holding	Purpose	Share
Liquid USDG	Buyback bid and same-hour redemptions	31%
USDG lent through Morpho	Interest for account of the treasury, counted after a haircut	52%
Protocol-owned liquidity	Depth on the market the fund itself trades against	17%

Risk free value

The published reserve figure is the risk free value: liquid USDG at par, the lent position after its haircut, and protocol-owned liquidity valued at the USDG side only. Nothing speculative is counted as backing.

The RWA Sleeve

Tokenized equities acquired through the bond desk and the Superstore are held in the Sleeve, a wallet custodied by the Manager for the benefit of the protocol. The Sleeve sits outside reserves and outside the backing behind NET. The Manager may deploy it to support the backing or the buyback in adverse conditions, at its discretion, and is under no obligation to do so.

What the treasury cannot do

• It cannot mint NET against reserves it does not hold
• It cannot pay a distribution that would take backing below 1 USDG per NET
• It cannot withdraw the buyback bid while reserves stand above the floor
• It cannot be redirected to the Manager's own account

Stake NET and the position pays three times a day. There is no committee and no discretionary rate: the formula reads the premium and the reserves, and it throttles itself at every epoch. Holders of record may move the hours at which an epoch is credited by vote, but not the amount it pays.

The cadence

Epoch	Opens	Pays
First	00:00 UTC	08:00 UTC
Second	08:00 UTC	16:00 UTC
Third	16:00 UTC	00:00 UTC

How the rate is set

• The premium to backing is read from the market at the close of the epoch
• The formula converts it into a rate and caps that rate at the published maximum
• The cap is applied again against reserves, so the floor cannot be breached to pay
• What remains is credited to every staked NET by rebase, with no claim transaction

Staking and unstaking

Staked NET becomes sNET. The balance grows on its own; the quantity of sNET rises at every epoch and nothing needs to be collected. Unstaking is available at any hour, with no lock, no notice period and no exit fee. Transfers of sNET between wallets carry the accrued position with them and pay no trading fee.

What a headline rate does not mean

An annualized figure is an upper bound. The rate re-throttles at every epoch, the premium moves, and a figure quoted today will not hold for a year. Read RISKS.HTM before acting on any number on this site.

A bond sells NET at a discount to the open market and delivers it over a two day vest. Because the subscription settles away from the market it pays no trading fee and takes no slippage, which is most of the reason a bond prices better than a purchase.

Terms of a subscription

Term	Standing
Subscription asset	USDG
Vest	Two days, released continuously
Trading fee on the subscription	None
Slippage	None; the price is quoted before the transaction
Discount	Set by the desk against the market at the moment of quote

Where the capital goes

The same transaction routes the subscribed USDG through Rialto into tokenized equities, which are held in the RWA Sleeve for the benefit of the protocol. The Sleeve is not part of reserves and is not part of the backing behind NET; see TREASURY.HTM.

Before subscribing

• The discount narrows as the desk fills, so a quote is only good for the block it is read in
• Vesting NET is not staked and does not earn a distribution until it is released and staked
• A bond cannot be cancelled once it is written; it runs to the end of its vest

Loopback lets a shareholder keep a position and still raise cash against it. Wrap staked NET, post it as collateral in a Morpho Blue market and borrow USDG, or let the router build the whole position in a single transaction.

How a borrowing works

1. sNET is wrapped into a non-rebasing receipt so the market can price it
2. The wrapped receipt is posted as collateral in an isolated Morpho Blue market
3. USDG is drawn against it up to the market's loan-to-value limit
4. The collateral keeps earning distributions while the loan is outstanding

The liquidation line

Every borrowing carries a liquidation line published in Shareholder Services. If the collateral value falls to that line the position is liquidated by the market, not by the Manager, and the shortfall is the borrower's. Distributions raise the collateral value over time but they do not move the line.

What the facility is not

• It is not a guarantee of liquidity; a Morpho market can run out of lendable USDG
• It is not a hedge; a leveraged position loses faster than the position it was built from
• It is not operated by the fund; the market sets the rate and enforces the line

A nightly draw in which the principal is preserved and only the yield is awarded. A deposit is held as NET and staked; the distribution the pooled stake earns over the night forms the prize awarded to a single participant.

Rules of the program

• Deposits are held as NET and staked for the account of the depositor
• The prize is the distribution the pooled stake earned over the night, and nothing further
• One participant is drawn per night; the draw is settled on chain and is independently auditable
• The depositor's NET quantity is preserved in all cases and may be withdrawn at any hour
• The value of that NET moves with the market, in either direction
• Participation is restricted to 18 and over

What the program does not protect against

The quantity of NET is preserved; its price is not. A night in which no distribution is credited is a night with no prize. Read RISKS.HTM before depositing.

A fixed-price allocation desk. Each Edition names a tokenized equity, sells at a stated price in USDG and allocates a variable quantity of NET, with the full distribution of outcomes published on chain before the Edition opens.

How an allocation settles

1. Subscribe to an Edition at its stated price in USDG
2. The allocation is drawn and settled on chain, and the quantity of NET is disclosed
3. Every allocation pays no less than the floor stated for that Edition
4. For 60 seconds the buyer may retain the NET or exchange it for a discounted allocation of the named equity

Published distribution of outcomes

The distribution of outcomes for every Edition is published on chain before the Edition opens for subscription. The floor is a contractual minimum and not an expectation: the expected value of an allocation sits well below the highest outcome published for it, and a subscriber should size against the expectation rather than the maximum.

Application of proceeds

Proceeds are applied to tokenized equities held in the RWA Sleeve, which sits outside reserves and outside the backing behind NET. See TREASURY.HTM.

A staged allocation program settled on chain. Each stage buys NET or a tokenized equity into the participant's own escrowed book, and the program resolves in exactly three ways.

The three resolutions

Resolution	Treatment of the book
Voluntary withdrawal	The participant retains 80 percent of the book
Failed stage	The book is forfeited to the pooled prize
Final stage reached	The book settles against the pooled prize

The escrowed book

The book is escrowed on chain and holds real assets: NET and tokenized equities acquired at the moment of each stage. Its value moves with the market while the program is open, which means a participant can withdraw voluntarily and still recover less than was committed.

Terms of the program

• Participation is restricted to 18 and over
• Every stage is settled on chain and is independently auditable after the fact
• The pooled prize is funded only by books forfeited on a failed stage

Four settlement desks, each paying in a tokenized equity acquired at the moment of settlement. Every desk publishes its full outcome distribution and its fee before a position is taken. Participation is restricted to 18 and over.

COINflip

A binary settlement desk. The participant selects a side, the outcome is settled on chain against a verifiable random source, and a winning position is paid in COIN, the tokenized Coinbase stock, acquired at settlement. The distribution is even and the 5 percent fee is the only deduction the desk takes.

SPACEX INVADERS

A multiplier settlement desk over nine outcomes, each carrying a published payout multiple, settled in SPCX. The desk returns approximately 90 percent of stake on expectation and a 5 percent fee applies on top.

MSFT FLIGHT SIMULATOR

A threshold settlement desk. The participant sets a target multiple before settlement and the ceiling for the round is committed in advance to a public randomness beacon. Reaching the target pays stake times target in MSFT. Every target returns 90 percent of stake on expectation and a 5 percent fee applies on top.

TURBO BLACKJACK

Six deck blackjack settled in TURBO cards, each a five times leveraged knock-out call on NVDA priced near one dollar on entry and held in the participant's own wallet. The dealer stands on all seventeens and blackjack pays three to two. The rules carry a house edge of 0.426 percent against basic strategy and the desk takes 1 percent on entry and nothing per hand. If NVDA reaches the card's financing level, every card outstanding settles at zero simultaneously.

Published terms, all desks

Desk	Settled in	Expected return	Fee
COINflip	COIN	Even distribution	5%
SPACEX INVADERS	SPCX	~90%	5%
MSFT FLIGHT SIMULATOR	MSFT	90%	5%
TURBO BLACKJACK	TURBO cards on NVDA	House edge 0.426%	1% on entry

What a participant should understand

Expectation is negative to the participant on every desk above, which is why the distribution is published in full rather than summarised. These desks are not programs of the reserve: they neither fund the treasury's backing nor draw on it, and a loss on a desk is not compensated by the fund.

A card is a leveraged position on a tokenized equity, sold at 5 USDG for 25 times exposure. NVDA and AAPL at launch. The desk settles on price alone and carries no randomness.

How a card works

• Every card names a knock-out price, stated on the card itself
• The card is worth the distance between the market price and that knock-out price
• It settles at zero from the moment the market reaches the knock-out price
• Cards close at any hour at a formula printed on the desk
• Cards are ERC-1155 tokens held in your own wallet and transferable
• Every open card is reserved in full on chain

Terms of the desk

Term	Standing
Price of a card	5 USDG
Exposure	25×
Underlyings at launch	NVDA, AAPL
Fee to open	5% of the premium
Fee on a winning close	5% of the profit
Randomness	None; price alone

The obvious risk

At 25 times exposure the knock-out price sits close to the market. A card can settle at zero on a single move and the loss is the whole premium. Restricted to 18 and over.

Perpetual futures margined in NET, running as a test program. The desk settles in NET and is not part of the reserve protocol.

Standing of the desk

• Margin is posted in NET and settlement is in NET
• Losses on the desk do not touch reserves and gains do not add to backing
• The desk may be suspended or withdrawn without notice while it is a test program
• Positions can be liquidated in full when margin is exhausted

Why it is fenced off

A reserve fund cannot be exposed to a derivatives book and still publish a conservative floor. The desk is therefore kept outside the protocol entirely: the treasury neither funds it nor stands behind it.

One fee, charged in one place. Market buys and sells pay 5 percent; nothing else in the fund charges a subscription or redemption fee.

Action	Fee	Note
Market buy of NET	5%	To the reserve
Market sell of NET	5%	To the reserve
Wallet-to-wallet transfer	None	Exempt
Bond subscription	None	Settles off-market
Stake or unstake	None	No lock, no notice
Distribution	None	Credited by rebase
TURBO card, to open	5%	Of the premium
TURBO card, winning close	5%	Of the profit
Settlement desks	5%	Blackjack takes 1% at the door instead

Where the trading fee goes

The fee funds the reserve that backs each NET. Early in the fund's life a decaying share went to the team; that share decays to zero, after which the whole fee goes to the reserve permanently. No program is exempt from the schedule.

DIGITAL ASSETS MAY LOSE SOME OR ALL OF THEIR VALUE. THE FLOOR DESCRIBED ON THIS SITE IS A FLOOR ON BACKING, NOT A FLOOR ON PRICE.

Price risk

NET trades at a premium to its backing. A premium can compress to nothing. A holder who buys at 4.59 times backing and sells at backing loses the difference regardless of how the treasury performs.

Rate risk

The distribution rate is a function of the premium and is re-throttled at every epoch. An annualized figure is an upper bound, not a forecast, and it will not hold for a year.

Contract risk

Everything described here runs as code. Code can contain defects. An immutable contract cannot be patched, which protects a holder from the Manager and exposes a holder to the defect.

Counterparty and venue risk

Reserves are lent through Morpho and equities are custodied in the RWA Sleeve by the Manager. A lending market can fail, a stablecoin can break its peg, a chain can halt, and a custodied wallet is only as good as its custody.

Program risk

The settlement desks, the Superstore, CLIMB and TURBO carry a negative expectation to the participant, which is why the outcome distribution of each is published in full. A TURBO card can settle at zero on a single move and a CLIMB book can be forfeited in full. None of these programs is covered by the reserve.

Regulatory risk

Rules applying to tokenized equities and on-chain programs differ by jurisdiction and can change without notice. A shareholder is responsible for the rules that apply where they are.

Terms as they stood

Term	Standing at close
Subscription asset	USDG
Use of proceeds	Reserves in the treasury contract
Floor established	1 USDG per NET, immutable
Allocation to the Manager	A decaying share of the trading fee, decaying to zero
Status	Closed; no further founding subscriptions are accepted

Why it is kept

The terms are published so that the record of how the fund was capitalised does not depend on anyone's memory. NET acquired today is acquired on the market or at the bond desk, on the terms in PROSPECTUS.HTM and FEES.HTM.

The fund communicates through the channels listed here and nowhere else. Anything else bearing this name is not ours.

What the fund will never do

• Ask for a private key, a seed phrase or a hardware wallet backup
• Ask a shareholder to move funds to a new address "for safety"
• Announce a surprise migration, a rescue contract or an emergency claim
• Contact a shareholder first by private message

Verifying a figure

Every figure on this site is read from the chain. Reserves, supply, staked balance and the distribution index can be read directly from the treasury and staking contracts, and a shareholder is encouraged to check them rather than trust a page.

Reporting an impostor

Report anything presenting itself as the fund outside the listed channels to shareholder relations. Include the address or handle and the time it reached you.

There are three ways to acquire NET and they do not cost the same. The market is instant and pays the fee; a bond is cheaper and takes two days; a transfer from another wallet costs nothing at all.

Route	Fee	Delivery	Slippage
Market buy	5%	Immediate	Yes, with size
Bond subscription	None	Two day vest	None
Wallet transfer	None	Immediate	None

Which route suits which holder

• Small and immediate. The market. On a small order the fee costs less than the attention a bond takes.
• Large or patient. A bond. It avoids the fee and the slippage entirely, at the cost of a two day vest during which the NET is not yet staked.
• Moving an existing position. A transfer. Wallet-to-wallet movement is exempt from the schedule, including transfers of sNET, which carry their accrued position with them.

What it costs to hold

Nothing. There is no management fee, no custody fee, no subscription fee and no redemption fee. The trading fee in FEES.HTM is charged on market trades and nowhere else, and it funds the reserve rather than the Manager.

What a first position usually looks like

1. Bring USDG onto the chain and keep enough of it for gas
2. Acquire NET by whichever route above suits the size
3. Stake it, so the position is credited at every epoch without a claim
4. Check the figures against the contracts rather than against this page

Every figure below is read from the chain at the date stated. The report exists to reconcile reserves against supply in one place; it adds no information that a shareholder could not read from the contracts directly.

Statement of reserves

Line	USDG
Liquid USDG at par	3,346,010
Lent through Morpho, after haircut	5,612,661
Protocol-owned liquidity, USDG side	1,834,909
Reserves counted as backing	10,793,580

Reconciliation against supply

Line	Figure
NET in issue	74,968 NET
Backing per NET	143.9755 USDG
Floor per NET	1.0000 USDG
Headroom above the floor	142.9755 USDG
Market price	661.1597 USDG
Premium to backing	4.59×

Notes to the statement

• The lent position is counted after a haircut, so the figure understates the balance held
• Protocol-owned liquidity is counted on its USDG side only; the NET side is excluded entirely
• The RWA Sleeve is excluded from every line above; see TREASURY.HTM
• Distributions paid during the quarter were funded from the premium and never from the floor

Read from Robinhood Chain at 09 Sept 2026, 05:43:45 UTC. Figures are historical and are not a forecast.

A fund company of this kind is usually defined by what its manager may decide. This one is defined by what its Manager cannot. The list below is the useful part of the constitution.

What the Manager does

• Publishes the figures and the documents, and operates the desks that need an operator
• Sets the discount at the bond desk and the Editions on sale at the Superstore
• Custodies the RWA Sleeve for the benefit of the protocol
• May deploy the Sleeve to support the backing or the buyback in adverse conditions

What the Manager cannot do

• Mint NET against reserves it does not hold
• Lower the floor of 1 USDG per NET, or waive it for one epoch
• Pay a distribution that would take backing below the floor
• Withdraw the buyback bid while reserves stand above the floor
• Pause a redemption, freeze a wallet or reverse a transfer
• Redirect reserves to its own account
• Move the rewards date, or any other parameter reserved to holders, without a vote

Management without managers

The distribution rate is a function, not a vote. There is no policy committee, no discretionary rate and no quarterly decision to anticipate. A shareholder who reads the formula knows as much about the next epoch as the Manager does.

The narrow set of parameters that are not fixed in code, the hours at which rewards are credited among them, is reserved to holders of record rather than to the Manager. A proposal is decided by one vote per NET at a snapshot block and executed by the timelock; the Manager can put a question to holders but cannot decide it and cannot vote on it. See PROPOSAL.HTM.

If the Manager stopped

The treasury, the staking contract and the buyback keep running without intervention. Desks that need an operator would stop taking new business. Reserves would remain where they are and could not be reached by anyone, including the Manager.

Because the fund never takes custody, nobody can take a position from a shareholder except the shareholder. That is the whole advantage, and the whole exposure.

What the fund will never do

• Ask for a private key, a seed phrase or a hardware wallet backup
• Ask a shareholder to move funds to a new address for safety
• Announce a surprise migration, a rescue contract or an emergency claim
• Contact a shareholder first by private message
• Charge a fee to release a distribution or unlock an account

Habits worth keeping

1. Reach every desk from the front page rather than from a message or a search result
2. Read the figures from the contracts, not from a page that claims to quote them
3. Keep a long-term position on a wallet that never signs anything experimental
4. Review token approvals and revoke the ones no longer in use
5. Treat urgency as the warning sign it almost always is

The risk that remains

Self custody removes the custodian and keeps the defect. Code cannot be patched once it is immutable, a lending market can fail, a stablecoin can break its peg and a chain can halt. None of that is solved by careful habits; see RISKS.HTM.

Reporting something

Report anything presenting itself as the fund outside the channels of record to shareholder relations, with the address or handle and the time it reached you. See CHANNELS.HTM.

Notices are posted here and nowhere else. A notice is never edited after posting; a correction is posted as a later notice.

Notice 13 — Proposal NNP-014 opened to holders of record

The hours at which rewards are credited are put to a vote of holders. Voting power is one vote per NET at the snapshot block and is read from the register; staked NET votes on the same terms as unstaked NET. The ballot, the quorum and the three options are set out in PROPOSAL.HTM. No option on the ballot changes the distribution formula or the floor of 1 USDG per NET.

Notice 12 — The trading fee now funds the reserve in full

The decaying share of the trading fee allotted to the team has reached zero. The whole of the 5 percent charged on market trades now settles into the reserve, permanently. No action is required of shareholders and the schedule in FEES.HTM is otherwise unchanged.

Notice 11 — Idle reserves lent through Morpho

Idle USDG in the treasury is lent for the account of the treasury. Interest accrues to reserves and not to the Manager. The lent portion is counted as backing only after a haircut, so the published figure understates the balance held.

Notice 10 — The RWA Sleeve opened alongside Real World Bonds

Tokenized equities acquired through the bond desk are held in the Sleeve, custodied by the Manager for the benefit of the protocol. Shareholders are reminded that the Sleeve is not part of reserves and is not part of the backing behind NET.

Notice 9 — The Managed Futures Desk admitted as a test program

The desk is margined and settled in NET and is fenced off from the reserve protocol. Losses on the desk do not touch reserves and gains do not add to backing. It may be suspended or withdrawn without notice while it remains a test program.

Notice 8 — The buyback bid posted below backing

The treasury bids for NET trading below its backing and retires what it buys. The bid is funded from reserves, reduces supply and has not been withdrawn since it was posted.

Notice 7 — The distribution cadence set at eight hours

Distributions are credited at 08:00, 16:00 and 00:00 UTC. Staked NET is credited by rebase and requires no claim transaction at any epoch.

Notice 6 — The founding subscription closed

The founding shareholder subscription is closed and no further founding subscriptions are accepted. The terms of record are kept in OFFERING.HTM.

The fund issues no tax documents. What it can tell a shareholder is exactly what is on the record and where to read it.

What the record contains

• Every transfer of NET and sNET to and from an address, with its block and timestamp
• Every distribution credited, epoch by epoch, and the index applied at each one
• Every bond subscription, its vest and its releases
• Every borrowing under Loopback and every repayment

What the record does not contain

• A cost basis, in any currency
• A jurisdiction, a residency or a taxpayer identity
• Any statement of gain or loss

Why a rebase complicates a ledger

A rebasing balance grows without a transfer. There is no incoming transaction to point at for each distribution, only a rising balance and an index that explains it. A shareholder reconstructing a history should record the index at each epoch alongside the balance, which Shareholder Services shows for the address.

Treatment differs by jurisdiction

Treatment of digital assets and tokenized equities differs by jurisdiction and changes. The fund reports what is on the record for an address and leaves the rest to the shareholder and their own adviser.

The fund operates entirely on chain and holds no branch network. Correspondence reaches it through the channels of record listed in CHANNELS.HTM, and every desk below is reachable at the hours stated.

Hours of business

Desk	Hours
Markets	Open 24 hours, 365 days
Distributions	08:00, 16:00 and 00:00 UTC
Buyback bid	Standing, without interruption
Bond desk	Open while the desk has capacity
WinNET draw	Nightly
Shareholder relations	Through the channels of record, wallet address ready

Where to take a question

• A figure you cannot reconcile: REPORT.HTM, then the contracts themselves
• A position you cannot see: Shareholder Services
• A rule you want in writing: PROSPECTUS.HTM and FEES.HTM
• Something presenting itself as the fund: SECURITY.HTM
• A question others have asked: the FAQ

Where the fund is reachable

The treasury, the staking contract and the register are on Robinhood Chain, chain id 4663, and are open to inspection at any hour. Correspondence should be directed to the channels of record rather than to a postal address; the fund maintains none.