# Introduction

**USYC** is the onchain representation of **Hashnote International Short Duration Yield Fund Ltd.** (SDYF). SDYF invests in short-term US Treasury Bills and performs repo / reverse-repo activity as the underlying asset of the USYC token.

USYC earns short-term Fed rate returns. Tokenization enables the fund to deliver rapid transactions, onchain transparency, and seamless composability—while maintaining strong controls across regulatory and credit dimensions.

## Liquidity

We understand the importance of liquidity in all market environments. To help investors enter and exit their positions efficiently, we structured our operation so investors can subscribe via USDC and redeem on the same day (T+0) into USDC. The subscription process is atomic and instant on the blockchain, and investors can redeem at any time 24/7/365. 

## Security

**USYC is issued by Circle International Bermuda Limited, regulated by Bermuda Monetary Authority (BMA), and represents an interest in a Cayman Islands mutual fund licensed by Cayman Islands Monetary Authority (CIMA).** We adhere to strict regulations, ensuring our operations meet institutional investment standards.

Assets are protected through segregated custodial accounts at our prime broker, guaranteeing direct access for shareholders and a high level of asset security. This straightforward and secure approach gives investors the confidence to focus on their investment goals. Trust and transparency are the pillars of our service, making us dependable in the digital asset market.

## Transparency

Assets and token prices are regularly published via an Oracle feed. All fees—including service, redemption, and management fees—are disclosed upfront. Our ERC-20 token has been externally audited and verified on Etherscan, providing reliability and security.

## Fund Management

The fund is managed by an experienced in-house Fixed Income Team with a track record of delivering consistent, risk-adjusted returns and liquidity management. Assets are primarily deployed in reverse repo, ensuring maximum liquidity and minimal duration risk\*. 

\*Fixed income assets such as Treasury Bills may lose value.


# Investor Onboarding

## Eligibility

{% hint style="info" %}
USYC is only accessible to institutions outside the United States, subject to eligibility restrictions and a US$100,000<sup>1</sup> minimum investment.&#x20;

USYC can be obtained by investors who are onboarded to Hashnote’s International Short Duration Yield Fund (SDYF)
{% endhint %}

## High-Level Process

1. Create a portal account on the [Investor Portal](https://portal.hashnote.com/api/auth/signup)
2. Complete onboarding questionnaire&#x20;
3. Fund administrator performs KYC/AML checks based on documents provided
4. Wallet screening provider whitelists wallet address provided
5. Receive onboarding success email<br>

<sup>1</sup> Information about USYC is directed only to entities who are not US Persons, as defined in Regulation S under the Securities Act of 1933.


# Subscription & Redemption

USYC can be obtained by onboarded investors through the[ Web3 smart contract method](https://usyc.docs.hashnote.com/overview/subscription-and-redemption#web3-smart-contract-method). For investing eligibility, see[ Investor Onboarding](https://usyc.docs.hashnote.com/overview/investor-onboarding)

## Web3 Smart Contract Method

### Subscribe USYC

Subscription is available via USYC Teller with USDC 24/7/365

1. Connect your wallet to the USYC Teller widget on this page.
2. On the "Fund" tab, enter the amount of USDC you would like to use to purchase USYC.
3. Click "Add Funds" to mint your USYC.

### Redeem USYC

Redemption is available via USYC Teller with USDC 24/7/365&#x20;

1. Connect your wallet to the USYC Teller widget on this page.
2. On the "Redeem" tab, enter the amount of USYC you would like to use to redeem USDC.
3. Select  "USDC" in the dropdown.
4. Click "Redeem Funds" to burn your USYC and receive USDC.&#x20;

## Private Liquidity Teller

“Private Liquidity Teller” (PLT) is available for special use cases.

PLTs allow the client to have up to 100% instant liquidity into USDC at all times. This can be configured to have 100% liquidity 24/7 or be filled for liquidity at certain times (i.e. over weekends).&#x20;

Additional fees apply for this service.


# Product Structuring

USYC is issued by Circle International Bermuda Limited, regulated by Bermuda Monetary Authority (BMA), and represents an interest in a Cayman Islands mutual fund licensed by Cayman Islands Monetary Authority (CIMA)

Tokens represent shares in the fund, thus all token holders need to be onboarded and KYC/AML’d to be able to own SDYF shares. The fund administrator moves shares in the SDYF share registry to reflect movements in the USYC token.

### Subscription Workflow

<figure><img src="/files/5efguHzAQUSeNIRDA547" alt=""><figcaption></figcaption></figure>

Once an investor is onboarded to SDYF, their wallet address is added to the Allowlist, and permission is granted to hold USYC. The investor sends stablecoin USDC via our Smart Contract Teller. Hashnote then transfers the investor's funds to its Prime Brokerage to invest into T-Bills and enter repo/reverse-repo agreements.

The investor's ownership of this fund is reflected on a blockchain via a permissioned ERC-20 smart contract. Hashnote mints into the investor’s wallet an amount of USYC tokens equivalent to the number of shares the investor has in the SDYF.

The amount of USYC the investor receives is equal to the deposit amount divided by the current price of USYC.

### Redemption Workflow

<figure><img src="/files/MybKbsTgoOB7vwtoEE8z" alt=""><figcaption></figcaption></figure>

Any client wallet on the Allowlist and granted permission to hold USYC can also redeem USYC into USDC with Smart Contract Teller.

The client's redemption of the USYC token will be reflected in the fund registry by our fund administrator.&#x20;

### Ledger

Ownership in SDYF is represented as shares at the Transfer Agent, and whose digital twins are represented onchain as a Smart Contract token (ERC-20 specification). The onchain representation introduces additional utility beyond what has been historically possible in traditional finance.

### Entitlements

Entitlements are the gatekeepers to most of the functionality of USYC. The wallets associated with KYC’ed entities receive a Role that entitles them to hold and transfer the token.

The USYC Smart Contracts queries the Entitlements contract to verify the caller of a transaction has the appropriate permissions to perform a transfer or to receive the token.

#### Sanctions Check

In addition to checking that a wallet is permissioned, the Entitlements contract also performs OFAC sanctions checks by querying an onchain oracle for matches to sanctioned addresses. The oracle is maintained by[ Chainalysis](https://go.chainalysis.com/chainalysis-oracle-docs.html).

#### System Halt

The Entitlements contract can also freeze all transactions involving USYC. As every type of action involving USYC verifies the Role of the sender, the Allowlist is positioned to revert all transactions. In the event there is suspicious activity, Hashnote has the ability to prevent any transaction from being completed. Only after the situation has been resolved, will the Allowlist be put back into a state that allows the token to be transacted on.

### Smart Contract Teller

To help investors enter and exit their positions efficiently, we provide a Smart Contract Teller to facilitate investing in the fund and liquidating the asset onchain.

#### Subscription

Through the Teller, investors can subscribe to USYC with USDC 24/7/365. Each stablecoin has an after-hours threshold1, and any after-hours subscription will be subscribed at the next business day's price. This price is calculated in advance based on the current interest rate generated by the fund.

#### Redemption

The Smart Contract Teller provides USYC holders immediate liquidity for USYC. At any time of the day, investors can redeem USYC at the latest reported price through the Teller. You can view the liquidity available on the USYC page in real time.\
\
If you require more liquidity on a specific day, please contact us at <customer-support@circle.com>.

<sup>1</sup>For subscription funds arriving after 2 PM EST, USYC shares are minted on the next business day.


# Token Price

## Price Reporting

USYC price is reported to the USYC Oracle, a Chainlink-style smart contract, once per business day after the Prime Brokerage has reported the prior day's activity.

USYC price report typically occurs at 9 am ET (subject to delays due to operational or technical reasons). The price is reflected onchain once all subscriptions, redemptions, and accrued interest are reconciled.

## Token Price Calculation

USYC price is calculated based on the Net Asset Value (NAV) of the Prime Brokerage account divided by the total supply of USYC on issue:

<div align="left"><figure><img src="/files/kRCYrtTRiIQet2Sc4Miw" alt="" width="563"><figcaption></figcaption></figure></div>

As new investors enter the fund, they buy in at the current price per share.

## Effective Subscription Price

Redemptions always occur at the current USYC price, and Subscriptions occur at the Effective Subscription Price. This aligns subscriptions with whether or not the capital was able to be included in earning yield for that business day.

For subscription with USDC:

* Between the USYC price report and 2:00 pm ET, the effective subscription price is equal to the current USYC price, meaning Circle offers free subscription and redemption at the same price.
* After 2:00 pm ET until the next price report, the effective subscription price is a forecast of the next price report, meaning redemptions occur at a different price than subscriptions.

## Trade Activity

Trade activity occurs Monday to Friday, excluding[ US Federal Holidays](https://www.federalreserve.gov/aboutthefed/k8.htm). The results of the trade activity will reflect the next morning. For example:

* Monday --- trade takes place and accrues interest overnight
* Tuesday --- trade activity is reconciled and reported onchain in the morning

## Interest Calculation

The USYC Oracle provides principal and interest at each price update to compute the current APR.

The principal and interest can be used to compute the overnight interest rate. When forecasting interest, it is important to account for interest that accrues over multiple days (e.g. a Friday repo generates a total of 3 days of interest).

## Integration

### USYC Oracle

The USYC Oracle adheres to the Chainlink aggregator interface.

<table data-header-hidden><thead><tr><th width="144"></th><th></th></tr></thead><tbody><tr><td>Etherscan</td><td><a href="https://etherscan.io/address/0x4c48bcb2160F8e0aDbf9D4F3B034f1e36d1f8b3e#readProxyContract">https://etherscan.io/address/0x4c48bcb2160F8e0aDbf9D4F3B034f1e36d1f8b3e#readProxyContract</a></td></tr><tr><td>ABI</td><td><a href="https://etherscan.io/address/0x3B7ad4835d817181592788A7E6D588D334e0426b#code">https://etherscan.io/address/0x3B7ad4835d817181592788A7E6D588D334e0426b#code</a></td></tr></tbody></table>

### Web2 API

USYC portal provides a JSON API of indexed and normalized on-chain price reports.&#x20;

<table data-header-hidden><thead><tr><th width="144"></th><th></th></tr></thead><tbody><tr><td>Mainnet</td><td><a href="https://usyc.hashnote.com/api/price-reports">https://usyc.hashnote.com/api/price-reports</a></td></tr><tr><td>Sepolia</td><td><a href="https://usyc.dev.hashnote.com/api/price-reports">https://usyc.dev.hashnote.com/api/price-reports</a></td></tr></tbody></table>


# Fees

## Standard Fees

| Performance Fee | Subscription Fee<sup>1</sup> | Redemption Fee<sup>2</sup> |
| --------------- | ---------------------------- | -------------------------- |
| 10% of yield    | 4 bps                        | 3 bps                      |

We offer tiered fees for private liquidity. Contact your Circle BD representative for details<br>

<sup>1</sup> Subscriptions are processed in USDC. The fee applies when burning USDC to subscribe to USYC.&#x20;

<sup>2</sup> All redemptions are processed into USDC.

\
For more information, please contact us at <customer-support@circle.com>.

<br>


# Smart Contracts

You can use the following contract addresses to integrate with USYC.

For Binance (BSC), you can use the Cross Chain Teller to subscribe and redeem native USYC from Ethereum.

## Mainnet

<table><thead><tr><th width="114.28515625">Chain</th><th width="228.51692708333331">Contract</th><th>Address</th></tr></thead><tbody><tr><td>Ethereum</td><td>USYC ERC20 Token</td><td>0x136471a34f6ef19fE571EFFC1CA711fdb8E49f2b</td></tr><tr><td>Ethereum</td><td>Teller (USDC)</td><td>0xeE35F963BFC71b51eC95147f26c030D674ea30e6</td></tr><tr><td>Ethereum</td><td>Cross Chain Teller (USDC)</td><td>0x5dbeCcECEbCdC2ce3258f6E638373d2923560c7d</td></tr><tr><td>Ethereum</td><td>Oracle</td><td>0x74f2199AEb743f68f05943e5715A33EaF2b61f53</td></tr><tr><td>Ethereum</td><td>Entitlements</td><td>0x902D906b8d988092213bE799B18Bd2cbd64F808C</td></tr><tr><td>BSC</td><td>USYC BEP20 Token</td><td>0x8D0fA28f221eB5735BC71d3a0Da67EE5bC821311</td></tr><tr><td>BSC</td><td>Cross Chain Teller (USDC)</td><td>0xf38979E05650be7926EA07BB59C48Fb9b1DB3D08</td></tr><tr><td>BSC</td><td>Entitlements</td><td>0x6B7d54003f73bE979cf92BF369432aC534853692</td></tr><tr><td>Solana</td><td>USYC SPL22 Token</td><td>7LWanZteUKtvFjv4MHYgKXXdAuCQYFPJysL9pxxdRQGn</td></tr><tr><td>Solana</td><td>Teller (USDC) and Permissions</td><td>EMfvuBR8rre2f7sNqdDyPzQW7kgBUsVtxg7nX93YwAdm</td></tr></tbody></table>

## Testnet

<table><thead><tr><th width="125.1640625">Chain</th><th width="245.45442708333331">Contract</th><th>Address</th></tr></thead><tbody><tr><td>Sepolia</td><td>USYC ERC20 Token</td><td>0x38D3A3f8717F4DB1CcB4Ad7D8C755919440848A3</td></tr><tr><td>Sepolia</td><td>Teller (USDC)</td><td>0x96424C885951ceb4B79fecb934eD857999e6f82B</td></tr><tr><td>Sepolia</td><td>Cross Chain Teller (USDC)</td><td>0x06eFF53Db53a760a8BAfAD0E0E229b90Fb8bAA11</td></tr><tr><td>Sepolia</td><td>Oracle</td><td>0x48c9E02E09d03E448673166d29691ECdEf56526F</td></tr><tr><td>Sepolia</td><td>Entitlements</td><td>0x7f44c5F5551ed651F7298367Ee51f1CBa608571b</td></tr><tr><td>Arc Testnet</td><td>USYC ERC20 Token</td><td>0xe9185F0c5F296Ed1797AaE4238D26CCaBEadb86C</td></tr><tr><td>Arc Testnet</td><td>Teller (USDC)</td><td>0x9fdF14c5B14173D74C08Af27AebFf39240dC105A</td></tr><tr><td>Arc Testnet</td><td>Oracle</td><td>0x52b56c7642E71dc54714d879127d97cd0B3D4581</td></tr><tr><td>Arc Testnet</td><td>Entitlements</td><td>0xcc205224862c7641930c87679e98999d23c26113</td></tr><tr><td>BSC Testnet</td><td>USYC BEP20 Token</td><td>0x109656Aba6F175c634c63C9874f29CeAAAB8E606</td></tr><tr><td>BSC Testnet</td><td>Cross Chain Teller (USDC)</td><td>0xc8ad161a7B8577fbBD5529b43d8a06CD8890b879</td></tr><tr><td>BSC Testnet</td><td>Entitlements</td><td>0x7860a6A8281eD687DcbAb942735F2be89Bcd4aE0</td></tr><tr><td>Solana Devnet</td><td>USYC SPL22 Token</td><td>7WkaBNxz6jpJWGLPNFNsUbuVH8iQ2FxBooMak6itUMWb</td></tr><tr><td>Solana Devnet</td><td>Teller (USDC) and Permissions</td><td>8FZQeFy39fNK47ebUd7aUWoK1rLgJ7fsteWev3FPP1Aw</td></tr></tbody></table>


# Web2 API

Below is a list of the HTTP endpoints that can be used instead of smart contract calls. These endpoints are public and do not require authentication.

<table><thead><tr><th width="131">Network</th><th>Description</th><th>Endpoint</th></tr></thead><tbody><tr><td>Mainnet</td><td>Get the current USYC token price</td><td><a href="https://usyc.hashnote.com/api/price">https://usyc.hashnote.com/api/price</a></td></tr><tr><td>Mainnet</td><td>Get historical USYC price data</td><td><a href="https://usyc.hashnote.com/api/price-reports">https://usyc.hashnote.com/api/price-reports</a></td></tr><tr><td>Mainnet</td><td>Check if an address is entitled to USYC</td><td><a href="https://api.hashnote.com/v1/entitlements/token_access?address=0x1299de42dff6f646d385cc49285be33797206b39&#x26;symbol=USYC">https://api.hashnote.com/v1/entitlements/token_access?address={address}&#x26;symbol=USYC</a></td></tr><tr><td>Sepolia</td><td>Get the current USYC token price</td><td><a href="https://usyc.dev.hashnote.com/api/price">https://usyc.dev.hashnote.com/api/price</a></td></tr><tr><td>Sepolia</td><td>Get historical USYC price data</td><td><a href="https://usyc.dev.hashnote.com/api/price-reports">https://usyc.dev.hashnote.com/api/price-reports</a></td></tr><tr><td>Sepolia</td><td>Check if an address is entitled to USYC</td><td><a href="https://api.dev.hashnote.com/v1/entitlements/token_access?address=0x1299de42dff6f646d385cc49285be33797206b39&#x26;symbol=USYC">https://api.dev.hashnote.com/v1/entitlements/token_access?address={address}&#x26;symbol=USYC</a></td></tr></tbody></table>


# Service Providers

## Providers

<table data-header-hidden data-full-width="false"><thead><tr><th width="219"></th><th></th></tr></thead><tbody><tr><td>Prime Broker</td><td><a href="https://www.marex.com/">Marex</a></td></tr><tr><td>Bank</td><td><a href="https://www.customersbank.com/">Customers Bank</a></td></tr><tr><td>Auditor</td><td><a href="https://www.cohencpa.com/">Cohen and Company</a></td></tr><tr><td>Fund Administrator</td><td><a href="https://www.navconsulting.net/">NAV Consulting</a></td></tr><tr><td>KYC &#x26; AML</td><td><a href="https://www.navconsulting.net/">NAV Consulting</a> and <a href="https://lmoservices.com.sg/">LMO Consulting</a></td></tr><tr><td>MPC Wallet</td><td><a href="www.fireblocks.com">Fireblocks</a></td></tr></tbody></table>