FAQ

What is RAVA?

The senior capital layer for protocols that want to be the liquidity layer for tokenized real world assets. Protocols deposit first loss capital, RAVA provides dynamic leverage on a zero coupon basis, and both sides share the upside of liquidations.

How does the leverage work?

Your protocol deposits first loss capital. RAVA layers senior capital on top. The leverage ratio is driven by proxy baskets and on chain monitoring and updates every 5 seconds. More risk means less leverage. Less risk means more leverage.

What does zero coupon mean?

No periodic interest payments on RAVA senior capital. No carry, no management fee. Instead, RAVA participates in the upside of each liquidation. RAVA only makes money when you make money.

How does RAVA manage risk?

Four signals drive allocation: proxy CVaR, bleed rate, issuer liquidity, and queue pressure. RAVA also hedges senior capital exposure with call and put options on the proxy baskets in the same category as each RWA. Repriced every 5 seconds.

How much first loss capital do I need?

It depends on the asset and changes every 5 seconds. The risk engine sizes the first loss requirement based on proxy basket volatility, issuer liquidity, token supply trends, and redemption queue depth. You see your requirement in real time.

What assets can I liquidate?

Tokenized real world assets: private credit, trade receivables, structured credit, tokenized securities. Each asset needs a proxy basket of publicly traded equivalents so the risk engine can price it and RAVA can hedge.

What happens if a liquidation loses money?

Your first loss capital absorbs it. RAVA senior capital is only impacted after your entire first loss tranche is depleted. The leverage ratio is sized so that this is unlikely under normal conditions.

How is the upside split?

The protocol earns on its first loss tranche first. RAVA takes a share of the total liquidation profit as senior capital return. The exact split depends on the leverage ratio and risk tier. No coupon is charged on top.

Is this custodial?

No. Deposits, acquisitions, and redemptions happen through smart contracts. RAVA does not hold your funds.