# 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 whole amount they pay is routed through **Rialto** into a **tokenized equity** from a curated menu, and that equity is held in the **NetNet RWA Sleeve**. The NET a subscriber receives is NET that the Sleeve **bought on the open market**. The Desk issues **no new NET**. The Desk is the Fund's headline bond product. It does two things at once: it sells NET without adding to supply, and it puts programmatic buy pressure on real-world assets settling on Robinhood Chain. The rules that make that work are 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. In one transaction: | Leg | Where it goes | |---|---| | **Equity purchase** | The whole amount. Rialto, then the chosen equity, then the NetNet RWA Sleeve. | | **The bond** | NET delivered to the subscriber on a two-day linear vest, priced below the market. | There is no fee leg. The Desk pays nothing to the Treasury, and a subscription does not change the Fund's reserves or its backing per token. An earlier version of the Desk sent a share of every subscription to the Treasury. It no longer takes subscriptions, and notes it issued vest and redeem exactly as before. The subscriber's NET is delivered from **pre-funded Desk inventory**. The Sleeve places 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. The discount is what the Sleeve gives up on each NET it sells through the Desk. The Desk delivers NET directly from inventory, so a subscription pays **no exchange slippage and no trading fee**. The bond page shows, for every route, how much more NET it delivers per USDG than buying on the exchange. 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 sell inventory 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. ## What the Desk does not do Stated plainly, because an earlier version of this page said otherwise: * The Desk **does not pay the Treasury**. No part of a subscription is remitted to reserves. * The Desk **does not raise backing per token**, and it does not lower it. It sells NET that already exists for equities that go to the Sleeve, and the Sleeve is not backing. * The Desk **does not mint**. Every NET it delivers was bought on the market by the Sleeve first. The Desk reads the Fund's backing per token for one purpose only, the floor guard above. ## 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 set by the Manager (`setMenu`, from the team Safe): names and weights can be added, removed, or rebalanced inside a list of tokens and price feeds fixed when the Desk was deployed. It is disclosed as exactly that, the Manager's **portfolio choice**. * 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. The Sleeve also receives tokenized equities forwarded from other fund programs: residuals from the Superstore, half of every [COINflip](/coinflip) fee, and half of every [SPACEX INVADERS](/spacex-invaders) fee, so its published holdings can include names that are not on the Desk menu. 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. * 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 Desk inventory is NET the Sleeve bought on the open market. The equities that subscriptions deliver to the Sleeve may be posted as collateral and borrowed against to buy more NET, which funds later inventory. Inventory leaves the Desk in two ways. A subscription turns it into a vesting note for the subscriber. The Sleeve may also take **unsold** inventory back, and the contract sends it to the Sleeve and to no other address. NET that is already owed to a subscriber's vesting note is not inventory and cannot be withdrawn by anyone but that subscriber. Inventory is **capped** (150 NET at launch, settable only within an immutable hard cap). ## 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. 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.