Asset Owner Investment Flow

Some traders also originate assets that later become part of a vault.

Lifecycle

You buy an asset through an approved flow. The protocol mints an asset claim token (ERC-721) (an NFT that represents a claim) to your wallet. Rights activate after KYC and contract completion. If payment fails or is reversed, the claim can be burned to void it. You may deposit the claim into a compatible vault and receive a vault token (ERC-20). Deposit is one way. You exit by selling vault tokens (ERC-20), not by withdrawing the original claim.

Diagram, deposit to vault

[You] --purchase--> [asset claim token (ERC-721)]
        (KYC + contract → rights active)
           \
            \
             > deposit into Vault → receive [vault token (ERC-20)]
                                    \
                                     \→ trade in the pool any time

Example: Watches Vault

Konvi (custodian) created the Watches vault and accepts fractional or entire ownership in luxury watches over $50,000. All assets deposited by customers of Konvi were purchased through a supplier vetted by Konvi, and already audited.

If someone wants to join the vault, instead of purchasing vault tokens, they can deposit their existing ownership into the vault, represented by an asset claim token, and receive vault tokens at an equivalent price.

This converts individual ownership into liquid vault exposure over a category of assets without first buying on the market.

Voting

Direct voting tied to the individual asset claim exists only while you hold the claim and have passed checks. After you deposit into a vault, the vault holds the claim for a pool of investors, so you forfeit direct claim level voting. As of today, Custodians are free to create their own policies around voting. Protocol level changes are governed by the $XVAULT token.