Each Stablebond token represents a proportional economic claim whose value is based on the net asset value (NAV) of a segregated pool of sovereign-debt assets held in regulated custody. Stablebonds are fully reserve-backed on an NAV basis, but they are not pegged to one unit of fiat currency. For example, a CETES token may have a NAV of MXN 1.234 even though one peso equals MXN 1.00. Its value reflects the reserve assets, accrued income, market valuation, fees, and other product liabilities. Redemption occurs at the applicable NAV, subject to the product’s disclosed terms, fees, and settlement timing.

As a context, Stablebonds are digital assets issued through blockchain technology, which are backed by different financial assets through financial entities authorized in Mexico to operate. These financial assets backing the Stablebonds currently are: (i) Mexican government debt (CETES); (ii) US government debt (US Treasury Notes); and, (iii) UK Government liability (Gilt) (hereinafter referred to indistinctly as "Financial Assets").

The acquisition of each Stablebond generates the right in favor of its holder to claim: (i) the applicable NAV of the Financial Asset backing the Stablebond; as well as (ii) its accessories upon maturity of the Financial Asset, in its case.

Stablebond NAV is not guaranteed to increase. Interest rates, sovereign credit spreads, market liquidity, fees, taxes, operational costs, and other factors can affect NAV. Secondary-market price may differ from published NAV.

The accessories are the amounts established by Etherfuse® through the Platform (hereinafter, "Rewards"), which source is the yield obtained on the acquisition of the underlying Financial Asset.

A paper outlining the use case of Stablebonds.
View the paper

Etherfuse® generates revenue from:

• Commissions as a percentage of the Yields on Financial Assets acquired using customer funds, minus commissions charged by third parties and taxes.
• Yields on Financial Assets purchased with its own capital.

As a context, Etherfuse®´s commissions collection model is based on a variable structure. This structure is related to the yield (Y) of the underlying assets. The fee charged (f) ranges from 0.25% to 1.5%, based on the yield and risk level of the underlying asset as follows:

1. Low yield range (Y < 4.5%): A fixed commission of 0.25% is applied to products with a yield equal to or less than 4.5%.

2. Intermediate yield range: For products whose yield is in an intermediate range, the commission is calculated as follows:

   F% = 0.2273 × Y - 0.7727

   This formula adjusts the commission proportionally to the performance of the asset, allowing the commission rate to increase as the performance increases.

3. High yield range (Y > 10%): Products with yields equal to or greater than 10% are subject to a fixed fee of 1.5%.

The general model looks as follows:

* Tax Withholdings: On both investments in Financial Assets (either with own capital or clients' resources), Mexican financial entities withhold 0.5% of the interest.