FAQ
Investment Process
Who can participate in the TBILL Vault?
Although the TBILL Vault was built on DeFi infrastructure, it will be a permissioned product. Investors will have to go through a KYC screening process to determine their eligibility to subscribe to TBILL tokens. Currently, Investors need to meet the Accredited Investor or Professional Investor criteria before subscribing to TBILL tokens.
Refer to Investor Onboarding for more information.
What is the onboarding process like?
The application and KYC/KYB document submission process can be completed in under 20 minutes on OpenEden’s digital onboarding platform if all required documents are on-hand.
How to invest?
After you receive a notification from OpenEden regarding your KYC approval and the whitelisting of your wallet address, then you can deposit USDC into the TBILL Vault and mint TBILL tokens.
Refer to Subscriptions for more information.
What is the minimum investment amount?
The first deposit must be 100,000 USDC or higher, while subsequent deposits should be 1,000 USDC or higher.
What is the maximum withdrawal amount?
The Investor can request to withdraw the entire investment by redeeming the Investor’s share of TBILL tokens from the TBILL Vault. Withdrawal amounts that are less than or equal to the Funds available liquidity reserves may be processed within 24 hours. Withdrawal amounts that are greater than the available liquidity will be placed in a withdrawal queue to be processed within two U.S. business days.
Refer to Redemptions for more information.
What fees are borne by investors?
There is a 5 bps transaction fee charged on redemptions and 30 bps annualised management fee.
Refer to Fees for more information.
What is the currency of all deposits and withdrawals?
All deposits and withdrawals are executed on-chain in USDC. A LI.FI widget is available on the TBILL Vault interface to facilitate conversions of other assets into USDC.
What is the underlying asset of TBILL tokens?
The TBILL token is backed by U.S. T-Bills held through the Fund’s bankruptcy remote SPV, which are zero-coupon government bonds issued at a discount to their par value and redeemed at par upon maturity. Because U.S. T-Bills are backstopped by the U.S. government, they are considered to be the “risk-free” rate and one of the safest investments in the world.
How is the token price for TBILL tokens derived?
Similar to yield-bearing tokens that accrue interest over time, TBILL tokens have a token price that corresponds to the NAV of the Fund’s holdings of U.S. T-Bills portfolio. The TBILL token price is calculated as the net asset value (NAV) per token. The token price can be derived by dividing the NAV of the Fund by the total outstanding supply of TBILL tokens.
Refer to Token Price for more information.
How to know if each TBILL token is fully collateralised?
TBILL tokens are backed 1:1 by a pool of U.S. T-Bills and USD at all times. The underlying assets of the circulating supply of TBILL tokens can be independently verified through the following data sources:
Daily statement from the regulated custodian of the Fund’s U.S. T-Bills holdings
The Fund’s assets are also attested every month by TJ Assurance Partners PAC, a Singapore-registered public accounting corporation. In addition, the Investor may refer to monthly NAV reports published by an independent fund administrator.
Refer to Audit & Attestations for more information.
How secure are assets deposited with the Vault?
Off-chain assets (U.S. T-Bills and USD) are held in custody with regulated financial institutions and custodians. U.S. T-Bills are also held in segregated accounts, which ensures that in the unlikely event of a custodian's insolvency, fund assets will be excluded from the assets available to creditors and will remain for the benefit of the fund.
Refer to On-chain Governance & Controls for more information.
Do TBILL token holders have a legal claim to the assets of the Vault?
TBILL token holders are contractually entitled to a share of the redemption value of underlying assets held by the Fund which corresponds to their investment. A token holder who wishes to redeem their investment will be paid an amount equal to the redemption price per token multiplied by the number of tokens set to be redeemed, net of fees.
Can TBILL tokens be transferred to others?
An Investor may only transfer to other whitelisted Investors.
Does the TBILL exchange rate always increase?
No. The TBILL token price reflects the net asset value of the Fund, which mainly comprises U.S. T-Bills. If the interest rate curve remains constant, then the portfolio is expected to increase in value every day, as the price of U.S. T-Bills increases daily and converges to par at maturity.
However, all bond prices are subject to interest rate risk. When interest rates rise, bond prices, including the TBILL token price, will fall. But this situation is temporary as U.S. T-Bills will always mature at par, barring a default by the U.S. government.
Refer to Interest Rate Risk for more information.
What is utilisation rate?
The utilisation rate of the TBILL Vault is the percentage of Fund’s assets that have been invested into U.S. T-Bills. The higher the utilisation rate means a greater proportion of the Fund’s assets are invested into U.S. T-Bills, vice versa. While the utilisation rate is targeted at a minimum of 97%, the actual utilisation rate may fluctuate due to new deposits, redemptions and portfolio rebalancing.
The yield to maturity of the Fundis a function of the utilisation rate and the estimated yield to maturity from the U.S. T-Bills portfolio.
TBILL Vault Actual Yield = Utilisation Rate x Portfolio Estimated Yield to Maturity
What is a smart contract vault?
The OpenEden TBILL Vault uses smart contracts to facilitate the on-chain subscription, issuance, and redemption of TBILL tokens in exchange for USDC. Smart contracts are self-executing programs that allow transactions between multiple parties to be conducted without an intermediary when predetermined conditions are met. Transactions with the TBILL Vault are settled in real time on a 24/7 basis.
How does OpenEden mitigate the Vault’s smart contract risks?
OpenEden Labs works with leading smart contract auditors to review the TBILL Vault’s protocols. The TBILL Vault has in place comprehensive guardrails to prevent systematic exploitation and hacks. In addition, OpenEden Labs collaborates with insurance firms and protocols to give users peace of mind when deploying the TBILL Vault protocols. On-chain assets, such as USDC are also converted and held in fiat with regulated custodians, reducing any financial impact in the unlikely event of a smart contract exploit.
Which service providers are supporting the TBILL Vault?
The Fund collaborates with leading banks, qualified custodians, and tier-1 legal counsel, including StoneX Financial Ltd (U.S. T-Bills broker), BNP Paribas (U.S. T-Bills sub-custodian), Coinbase Prime (fiat on-ramp), KPMG (tax advisor), Elliptic (blockchain compliance), Harneys (legal counsel), Protege Fund Services (fund administrator), TJ Assurance Partners PAC (fund auditor) and LSEG (U.S. T-Bills market data provider).
Has the TBILL Vault been audited?
The TBILL Vault’s smart contract is audited by Hacken and Verichains. The Fund also undergoes monthly attestations of its assets by TJ Assurance Partners PAC, a Singapore-registered public accounting corporation with the Accounting and Corporate Regulatory Authority.
Refer to Smart Contract Risk and Audit & Attestations for more information.
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