Investing & Redeeming

Investing

What is the minimum I can invest or redeem?

Currently the minimum for investment or redemption is $500, but we expect this minimum to decrease substantially over time. Our goal is to enable anyone that meets our eligibility criteria to invest or redeem. We also support investments via USD bank wire for amounts of $100,000 or more. At this time, however, redemption for Temporary Global Certificates (i.e. prior to your token issuance) is only available for amounts greater than $100,000.

How or what forms of payment / currency can I use to invest?

Currently we only support investing with USDC, though we may need to expand to other stablecoins in the future. We also support USD wire for investments of $100,000 or more. If you would like to make a USD wire investment, please contact us at support@ondo.finance.

Is the minimum relevant for all deposits and redemptions or just the first one?

All deposits and redemptions.

How quickly after I invest can I expect my Tokens?

As you can read about under How it Works, after you invest, you will typically receive your Temporary Global Certificate within 2-3 Business Days after depositing. The Temporary Global Certificate represents your ownership in USDY. To comply with applicable US regulations, however, you will not be able to claim your transferable Tokens until the Restricted Period for your Certificate ends; this is usually between 40 and 50 days from the time you deposited funds (depending upon exactly when we received your investment). For more information, see How it Works.

How long after investing do I start earning yield?

See our answer here.

Can any type of wallet or account hold USDY?

Currently, Ethereum EOAs (i.e. personal wallets, Metamask, etc) and multi-sigs are supported, but custody accounts (e.g. Coinbase or Binance) are not.

Are we allowed to specify more than one address?

If you would like to add more addresses to your USDY account, please contact us at support@ondo.finance.

In the future, users will have the ability to manage multiple wallet and bank accounts within their Ondo account. Currently, changes to registered wallets must be coordinated through our support staff. Please note that only one wallet can be designated as the primary wallet at any given time, and it will serve as the default address for subscriptions and redemptions. For further assistance on this matter, feel free to contact our support team.

Are there offering documents like a prospectus, PPM, or loan documents I can see?

To comply with US laws and regulations, we are only able to provide such materials to investors who successfully complete our onboarding process to prove eligibility. You will have an opportunity to review all materials prior to investing.

I want to invest via bank wire. How do I do that?

Bank wire deposits are only available to those investing $100,000 or more. You will need to provide us with account information for the sending account. Include the account number, ABA/SWIFT Number, name of your bank, and the name on the account. You will also be given a specific code, which you will need to include in the memo/notes section of your wire. Finally, once the wire is sent, you will need to provide us with the unique identifier assigned by your bank to the transaction once the wire has been sent. Depending upon your bank, this might be called a MT103 Message, a UETR, or an IMAD. You will likely have to ask your bank to provide this to you. To begin this process, please contact us at support@ondo.finance.

How do subscribe on a network other than Ethereum?

All subscriptions must be made via USDC on Ethereum, or via USD bank wire (available for subscriptions over $100,000). If you would like the USDY tokens for your subscription to be minted on a different network on which USDY is natively available, please contact us at support@ondo.finance.

Redeeming

What Tokens or currencies can I receive upon redemption?

To comply with US regulations, redemptions must be made in fiat currency and only to bank accounts outside the US; payouts in the form of stablecoins are not allowed. Currently we only support USD wire transfers, so please make sure that any bank account you wish to use can accept USD. If you provide us with a bank account that does not accept USD, wires we send you may be rejected, delaying receipt of your funds.

I just made an investment. How quickly can I redeem?

If you are redeeming more than $100,000, you can submit a redemption request as soon as you receive your Temporary Global Certificate. If you wish to redeem less than this, you must wait until your Tokens are minted, which takes between 40-50 days from the time of your deposit, depending on exactly when it was made.

Can I submit a redemption request at any time?

If you are redeeming Tokens, yes. If you are redeeming one or more Temporary Global Certificates that have not yet been converted to Tokens and meet the minimum early redemption threshold, the only other time you would need to wait is during the two-Business-Day period right before your Tokens are minted (this minting date is also known as the “Restricted Period End Date”, which you can find on your Temporary Global Certificate). To ensure accounting accuracy, once this period starts you will typically need to wait until your Tokens are issued and then redeem them via the normal process via our website.

Once I submit a redemption request, how long before I get my money?

Once you receive your Tokens, you can submit your redemption request on our platform at any time and your redemption will be processed within five Business Days. If you email us to request a redemption of your Temporary Global Certificates prior to your Tokens being issued, then, subject to you meeting the minimum early redemption threshold, we will process your redemption within five Business Days of receiving both (a) your request for redemption and (b) valid wire instructions to a USD-denominated, non-US bank account.

If we receive your redemption request before 8pm UTC on any given day, we will typically begin the redemption process on the next Business Day. For example, if you requested a redemption on Tuesday, we will typically begin the redemption process on Wednesday. Once the redemption process starts, it usually takes another 1-2 Business Days for us to initiate the wire transfer to your account. Note that for early redemption requests of Temporary Global Certificates, it may take a bit longer.

How do I request a redemption?

It depends if your Tokens have been minted yet or not. If you wish to redeem your Tokens, you can do so via our web app. If you wish to redeem your Temporary Global Certificates prior to your Tokens being minted, you can contact us at support@ondo.finance.

How do request a redemption on network other than Ethereum?

If you wish to redeem USDY tokens on a different network on which USDY is natively available, please contact us at support@ondo.finance. Please note that all redemptions must be made via USD bank wires to bank accounts outside the US.

If I redeem or transfer my rUSDY tokens before the yield due is accrued, will I still accrue or receive that yield?

No. Due to the way that rebasing works, you would not accrue or receive that yield on the transferred tokens. Because rebasing in effect increases the number of rUSDY tokens in your wallet proportional to the number of tokens in your wallet at the time of rebase, if you have already redeemed (or transferred) those tokens, your “base” of tokens has already decreased.

Keep this in mind when redeeming or transferring tokens.

Let’s say I transfer my USDY or rUSDY tokens to another party. Who gets the accrued yield for that day, me or them?

The general rule to keep in mind is this: whoever holds the tokens at the time of the price update gets the yield.

So you will always redeem 1 rUSDY for 1 USD?

Legally, an rUSDY token is a fractional representation of a locked USDY token, which in turn is interest-bearing tokenized debt secured by short-term US Treasuries and bank demand deposits. The Reference Token Price per rUSDY token, then, is equal to (a) the total number of USDY tokens locked in the wrapper contract times (b) the Reference Token Price per USDY token, the product of which is divided by the total number of rUSDY tokens. (See here for more details.) The wrapper contract adjusts the number of rUSDY in existence based upon the Reference Token Price of the underlying USDY token such that the value of an rUSDY token remains 1 USD.

Tax Forms

Where can I find my W-8 tax form? How do I update it?

If you are an individual you can visit your account page (opens in a new tab) and find your W-8 tax form on the last page of your USDY Subscription Document Packet. If (a) you are redeeming on behalf of an organization and wish to see the latest W-8 we have on file, OR (b) you are an individual or an entity and wish to update your tax information, please contact us at support@ondo.finance. If you have never completed a W8 form before, please read the rest of this section.

Which W-8 tax form do I need to use?

We cannot provide specific guidance for your situation so please check with your tax adviser. However, here is some general information that may help you:

• Individuals: If you receive a salary or share in the profits of a US Business, then the W-8ECI is likely the appropriate form. If not, it's likely the W-8BEN.
• Business Entities that act as intermediaries or flow-through entities generally use Form W-8IMY. If the business is not an intermediate or flow-through, your decision depends on whether the entity has income effectively connected with a US trade or business. If it does, you should likely complete Form W-8ECI. If it doesn't, you should likely complete Form W-8BEN-E.
• Governments and non-profit or tax-exempt organizations should complete Form W-8EXP to certify their foreign status and, if applicable, claim an exemption or receive reduced withholding.

Remember, these guidelines are simplified, and the specifics of US tax law can be complex. Always consult a tax professional or the IRS for advice tailored to your circumstances.

The W-8 Form is asking me for a Taxpayer Identification Number (TIN) or an Individual Taxpayer Identification Number (ITIN). What should I do?

If you already have been issued a TIN or an ITIN by the IRS, please list it on the form. Beyond that, we cannot provide specific guidance for your situation so please check with the IRS or your tax adviser. However, most people or entities that do not already have such a number do not need to obtain one for the purposes of this form and can leave this field blank.

Timing

What is the cutoff time each day for subscription and redemption requests?

8pm UTC on each Business Day. Any subscription or redemption requests received prior to that will be considered as having been made that day. Any request received after that will be treated “as if” it had been made on the next Business Day.

What is a “Business Day”?

A Business Day shall mean any day that is not (a) a Saturday, (b) Sunday, (c) any other day on which banks in Wilmington, Delaware, are authorized or obligated by law or executive order to be closed or (d) any other day on which the Federal Reserve Bank of Philadelphia is closed.

Other

What if I lose my Temporary Global Certificate or Token?

Because USDY tokens designed to be a bearer instrument like a stablecoin, if you lose your Tokens there is not much we can do. If you lose your Temporary Global Certificate prior to claiming your Tokens, however, you can always re-download your certificate by logging into your Ondo account.

What happens if USDC fails/de-pegs?

If USDC de-pegs after an investment has been processed, there is no adverse effect on USDY holders. Between the time an investor deposits USDC to a crypto exchange account (e.g., Coinbase Prime) owned by Ondo USDY LLC and the time the issuer converts the USDC to US Dollars (and vice versa), the investor assumes all benefits (risks) of any appreciation (depreciation) in the crypto asset’s value. Under normal circumstances, Ondo USDY LLC converts USDC to USD at 1:1. In the event of any material de-pegging, Ondo USDY LLC will contact the lender prior to converting any assets, which may potentially delay the transaction.

Legal Notice

These pages are provided solely to facilitate your understanding of certain key features and terms of USDY and its issuer, and is qualified in all respects by the Tokenized Credit and Security Agreement, your Subscription Agreement, the Borrowing and Lending Memorandum, and the Limited Liability Company Agreement of Ondo USDY LLC.

For the purposes of these pages, the capitalized term “Token” shall refer to the transferrable USDY token.

Neither these pages, nor any related links or discussions, nor any portion hereof or thereof, constitutes any offer to sell, or any solicitation of an offer to buy, any securities, including but not limited to USDY Tokens.

Neither these pages, nor any related links or discussions, nor any portion hereof of thereof, constitutes any representation, warranty or covenant on the part of Ondo Finance Inc., Ondo USDY LLC or any other person.

These pages and their links contain, and officers, agents or representatives of Ondo Finance Inc. or Ondo USDY LLC may from time to time make, "forward-looking statements". Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on current beliefs, expectations and assumptions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the control of Ondo Finance Inc., Ondo USDY LLC and their respective officers, agents and representatives. Actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.

Acquiring USDY Tokens is speculative and involves substantial risks. There can be no assurances that a USDY Token holder will not incur losses, including total loss of their investment in USDY Tokens.

The USDY Tokens are not offered OR SOLD, and will not be offered OR SOLD, in the United States or to US persons. In addition, the USDY Tokens have not been registered under the Securities Act of 1933, as amended (the “Act”) or the securities laws of any other jurisdiction, and may not be offered, sold or otherwise transferred in the United States or to US persons unless the securities are registered under the Act, or an exemption from the registration requirements of the Act is available. Additional limitations on transfer also apply.