# Real World Bonds Real World Bonds are the Fund's **equity bond desk**. A subscriber pays **USDG** and receives **NET** at a discount to the open market, delivered on the same two-day linear vest as a standard bond. In the same transaction, the capital they contribute is routed through **Rialto** into a curated menu of **tokenized equities** — Nvidia, SpaceX, and Apple at launch — which are held in the **NetNet RWA Sleeve**. The NET a subscriber receives comes from the Manager's own vested allocation, distributed **exclusively through the Desk and never sold on the market**. The Desk is the Fund's headline bond product. It exists to do three things at once: distribute the Manager's allocation without any sell pressure, put programmatic buy pressure on real-world assets settling on Robinhood Chain, and route the proceeds back into the Fund's reserves. Each of the claims that make that work is enforced by the contract, not promised. ## What a subscription does A subscriber chooses a name from the menu, enters an amount of USDG, and confirms. The Desk splits that USDG in one transaction: | Leg | Where it goes | At today's marks | |---|---|---| | **Reserve Remittance** | The Treasury, as a backing-neutral fee | ~6% of the amount | | **Equity purchase** | Rialto → the chosen equity → the NetNet RWA Sleeve | ~94% of the amount | | **The bond** | NET delivered to the subscriber on a two-day linear vest | priced below the market | The subscriber's NET is delivered from **pre-exercised Desk inventory** — the Manager exercised the allocation and placed the NET on the Desk in advance, so a subscription is a single on-chain step for the buyer. ## The price — a discount inside an immutable cap The Desk price is the Fund's exchange TWAP, marked down by a Manager-set discount: ``` Desk price = TWAP × (1 − discount) ``` The discount is **6.5%** at launch and is settable by the Manager, but only **inside an immutable cap of 7.5%** written into the contract — `setDiscount` reverts above it. The Manager can tune the equities story over time; the Manager can never widen the discount past the bound. Measured against buying the same NET on the open market, the subscriber's **all-in advantage is about 11.2%**. That figure combines the 6.5% price discount with something a market purchase cannot avoid: the Desk delivers NET directly from inventory, so a subscription pays **no exchange slippage and none of the 5% trading fee** an open-market purchase incurs. The price shown is the price paid. **The floor guard.** The Desk will not sell near backing. If the Desk price would fall below the Fund's high-water backing times a fixed premium (1.20×), subscriptions halt rather than distribute the allocation cheaply. The guard binds whichever is higher — the discounted price or the floor — so a deep discount can never be used to sell close to NAV. Vesting notes already issued are unaffected and continue to claim. ## The Reserve Remittance — backing-neutral issuance Every new NET the Desk issues is matched by a payment to the Treasury sized so that **backing per token does not fall**. When one NET of new supply enters circulation, backing per token is unchanged if and only if the Treasury receives the current backing per token alongside it. The Manager's strike delivers 1 USDG at exercise; the Reserve Remittance delivers the rest: ``` Reserve Remittance per NET = (high-water backing per token) − 1 USDG ``` The remittance is charged against a **monotone high-water mark** of backing per token, updated at every fill. Two consequences follow, both verifiable from on-chain events by anyone: * Backing per token **never ends below** its pre-Desk high-water mark. A fully sold inventory clip restores backing per token exactly. * When backing rises for other reasons — Treasury yield, trading-fee inflow, standard bonds — the high-water mark follows and the remittance rises with it. The Desk can only ratchet backing up, never bleed it. This is why the discount lever is safe: the Manager sets the *price* a subscriber pays, but has no way to touch the *backing* every other holder relies on. ## The equity menu The Desk holds a menu of `{token, price feed, target weight}` entries. At launch it is three equally weighted names — **Nvidia, SpaceX, and Apple** — each with a live Rialto market and a Chainlink price feed on Robinhood Chain. * Each subscription executes **one** Rialto swap into **one** menu name. The Desk buys the **most underweight** name relative to its target, so the Sleeve converges on its target weights over many fills. * The menu is the Manager's one discretionary surface (`setMenu`, from the team Safe): names and weights can be added, removed, or rebalanced. It is disclosed as exactly that — the Manager's **portfolio choice**, inside a Desk whose **economics the Manager cannot change**. * Removing a name stops future purchases of it; it does not sell existing holdings. The Desk never sells. ## The NetNet RWA Sleeve The equities acquired through the Desk are held in the **NetNet RWA Sleeve**, a strategic real-world-asset reserve **held by the Manager for the protocol's benefit**. The Sleeve is **team-custodied** (a dedicated Safe) and is **published on chain for anyone to audit** — its live holdings and its address are shown in the Desk section of the app. Stated plainly, so there is no confusion: * The Sleeve is **not part of the Fund's on-chain reserves (RFV) or backing today.** A team key holds it; it is not in the trustless Treasury. No NET is backed by these assets today, and the Desk's backing-neutrality above does not depend on them. * The Sleeve is **earmarked to further NetNet.** In adverse conditions the Manager **may**, at its discretion, deploy the Sleeve to support backing or the inverse bond. That is a commitment to a possible future use — it is discretionary and social, not automatic and not contract-enforced. That distinction is the honest one: the Sleeve is a real reserve the Manager has committed to the protocol's benefit, described in the conditional tense for anything it *may* do, never as present backing for anything it does not do today. ## Inventory — one-way, and capped Desk inventory has exactly **one exit**: a filled vesting note. There is no withdrawal function. Whatever NET the Manager places on the Desk can leave only as a subscriber's bond — it **can never reach the exchange pool**. This is what turns "the Manager's allocation is never sold on the market" from a promise into a contract fact. Inventory is **capped** (150 NET at launch, settable only within an immutable hard cap). If the Desk were to halt forever, the stranded inventory is bounded by that cap and is the Manager's loss alone — which is why clips are kept small. ## How to subscribe 1. Open the **Real World Bonds** desk on the [bond page](https://app.netnet.capital) and pick an equity. One name is selected for you by default. 2. Enter an amount of USDG. The panel shows your balance and what the Desk can cover, and previews the NET you receive and the split. 3. **Approve USDG**, then **Confirm** — two separate wallet signatures. The approval is a one-time step; return subscriptions only confirm. 4. Your NET vests linearly over **two days**. Claim it from the subscription ledger below the desk, alongside any standard bonds. ## Risk factors * **Market risk.** Tokenized equities rise and fall in value. The Sleeve is marked at its Chainlink prices and can lose value. * **Vesting risk.** NET is delivered over two days, not instantly; its price can move against a subscriber during the vest. * **Discretionary reserve.** Any future use of the Sleeve to support backing or the inverse bond is at the Manager's discretion and is not guaranteed. * **Execution and feed risk.** Subscriptions depend on Rialto execution and live price feeds; the Desk halts rather than fill on a stale feed, an execution outage, or near backing. Full Fund mechanics are in [The Fund (Mechanism)](/mechanism); reserve and NAV accounting is in [Treasury & NAV](/treasury). Nothing here is investment advice.