# Welcome to Apyx
Double-Digit Yield for Everyone
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Apyx’s apxUSD is not a traditional fiat-backed stablecoin, such as USDT or USDC. Instead, apxUSD is an over-collateralized, dividend-backed synthetic dollar whose stability is supported by a reserve of crypto-related dividend-bearing real world assets. apxUSD is not directly redeemable for those underlying assets; redemptions are settled in USDC.
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### Overview
Apyx is the first Dividend-Backed Dollar (DBD) protocol backed by variable rate perpetual preferred stock such as STRC issued by Strategy (MSTR). Apyx is currently live on Ethereum, Base, BNB Chain, and Solana.
Apyx uses a two token model.
* **apxUSD**: a synthetic non-yield bearing stable asset intended to provide deep liquidity in secondary markets and broad usability as a collateral asset across DeFi and CeFi. apxUSD is intended to be over collateralized at all times.
* **apyUSD**: Apyx's yield asset, a yield-bearing stablecoin (YBS) that accrues yield from dividends paid by Digital Asset Treasury (DAT) companies such as Strategy (MSTR).
In the future, Apyx will have a governance token, APYX, which will be used to influence the future, development, and treasury management of the protocol. APYX tokens are intended to launch with value accural mechanisms enabled.
### Quick Links
### Contract Addresses
| Chain | apxUSD | apyUSD |
| ---------------- | ----------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------- |
| Ethereum Mainnet | [`0x98A878b1Cd98131B271883B390f68D2c90674665`](https://etherscan.io/address/0x98A878b1Cd98131B271883B390f68D2c90674665) | [`0x38EEb52F0771140d10c4E9A9a72349A329Fe8a6A`](https://etherscan.io/address/0x38EEb52F0771140d10c4E9A9a72349A329Fe8a6A) |
| Base | [`0xD993935E13851dd7517af10687EC7e5022127228`](https://basescan.org/address/0xD993935E13851dd7517af10687EC7e5022127228) | [`0x2c271ddF484aC0386d216eB7eB9Ff02D4Dc0F6AA`](https://basescan.org/address/0x2c271ddF484aC0386d216eB7eB9Ff02D4Dc0F6AA) |
| BNB Chain | [`0x6b3788Fd6604BBF03c5378D24e57BB334BAAD4aF`](https://bscscan.com/token/0x6b3788Fd6604BBF03c5378D24e57BB334BAAD4aF) | [`0xa14556f13516C53FF035858Ffd21E1625e7EADfd`](https://bscscan.com/address/0xa14556f13516C53FF035858Ffd21E1625e7EADfd) |
| Solana | [`HAYQtfJEQ9DbDbaHEhxfGsWbSZ3ywthdsVB3PuB72DYe`](https://solscan.io/token/HAYQtfJEQ9DbDbaHEhxfGsWbSZ3ywthdsVB3PuB72DYe) | [`Ex8hKasfFCfj3yGuN5TyYRUjHePgVs3uYUJRT8geT7rv`](https://solscan.io/token/Ex8hKasfFCfj3yGuN5TyYRUjHePgVs3uYUJRT8geT7rv) |
### What Makes Apyx Different
Apyx redefines what it means to be a dividend-backed dollar, delivering competitive yield, institutional-grade transparency, and proven backing that sets it apart from traditional stablecoins.
#### 1. Competitive Yield in a Zero-Yield World
Unlike the vast majority of stablecoins (USDT, USDC) that offer little to zero yield, Apyx provides double-digit returns to holders. While traditional stablecoins lose purchasing power through inflation, apyUSD delivers double-digit yield. Now, idle capital can be productive, yield-generating assets without sacrificing stability.
#### 2. Backed by Publicly Listed Preferred Equity
Apyx is collateralized by publicly traded preferred equity products from Digital Asset Treasury (DAT) companies. These are real, publicly-listed securities with transparent pricing, dividends, and regulatory oversight, providing a fundamentally different backing mechanism than traditional stablecoins.
#### 3. Superior Transparency
While many stablecoins publish limited attestations or vague reserve breakdowns, Apyx provides full transparency through:
* Daily updated NAV dashboards
* Real-time visibility into underlying collateral
* Verifiable holdings of exchange-listed securities
* No hidden strategies or black box operations
Unlike some yield-bearing stablecoins that rely on opaque trading strategies, Apyx's returns come from transparent, publicly-traded instruments.
#### 4. Supported by a Publicly Listed Company
Apyx is supported by the team behind [DeFi Development Corp. (Nadsaq: DFDV)](https://defidevcorp.com/), the first SOL DAT. As such, Apyx brings institutional-grade governance and accountability rarely seen in stablecoins. This backing provides:
* Regulatory compliance infrastructure
* Established capital markets relationships
* Long-term sustainability and credibility
* Alignment with public market shareholders
#### 5. Crypto & TradFi Veteran Team
The founding contributing team combines decades of experience across both traditional finance and crypto:
* Deep expertise in capital markets, derivatives, and risk management
* Track record of launching and scaling successful DAT products
* Understanding of both institutional and DeFi user needs
* Proven ability to navigate regulatory and market challenges
**The Result:** Apyx delivers what stablecoins have failed to provide - meaningful yield, institutional transparency, and verifiable backing, all while maintaining the stability and accessibility users expect.
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The acquisition of apyUSD is not offered to persons in a sanctioned jurisdiction or to any person who resides in, or has its registered office in, the United States, the European Union, or the European Economic Area.
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# The Digital Credit Thesis
The Dollar Reinvented by DAT Collateral
### The Trillion Dollar Yield Crisis
As of February 2026, the stablecoin total market cap has ballooned to nearly $310 billion, nearly 85% of which is comprised of USDT and USDC. Simply holding stablecoins doesn't generate any default yield, since returns from their reserves aren't automatically passed to token holders. To generate a yield, users must take on extra risks via a lending platform or liquidity provisioning. Otherwise, dollars sit and generate zero return. With more than $300 billion in capital stuck in zero/low yielding stablecoins, a disconnect grows between the capital's scale and the rails for delivering yields. This is essentially the "eroding money problem," where assets lose value relative to inflation.
The burden of a non-yielding stablecoin becomes apparent when accounting for inflation, which has average 3% annually for the past decade. Passively holding most stablecoins means a loss of purchasing power over time. Normally, market participants park capital into cash-like products, such as T-bills or money market funds, to minimize the burden of inflation. Though better than the near 0% rate offered in a traditional savings account, money market products still deliver underwhelming returns that fail to outpace inflation.\
\
The bottom line is simple: idle capital may sit safe but doesn't inherently protect against loss of value. Onchain, the same dynamic exists - passively holding stablecoins without action results in zero yield and a loss of value.
In the search for yield, the cryptoasset industry has seen the birth of yield-bearing stablecoins (YBS). These stablecoins have a native yield embedded that are fueled, typically, by opaque trading strategies. In other words, YBS rely structurally on derivative funding, hedge operations, and trading costs, often intertwined with centralized exchanges for liquidity and margin management. This, amongst other things, creates compounding problems with scale. As capital floods in, similar carry and basis opportunities get competed away quickly. Inevitably, as size grows, yield diminishes. So while this approach proves demand for yield-bearing dollars, it's structurally disadvantaged for scaling to a trillion-dollar baseline yield rail. Sourcing yield this way also opening the door to high operational costs, market & derivative risks, and other structural risks that can result in holders actually being under-compensated relative to the risk assumed.
### Unlocking Value Through DATs
The key to bridging this gap lies in DATs (Digital Asset Treasuries), which are publicly listed companies that hold digital assets on their balance sheet, such as bitcoin (BTC), ether (ETH), or solana (SOL). They place asset holdings at the core of their financial strategy, leveraging capital markets to grow their holdings.
Historically, this model has worked because these companies, namely Strategy (MSTR), traded at a premium to its net asset value (NAV). When the premium holds, the company can raise funds to buy more assets, resulting in more digital asset per share, which becomes a flywheel for additional issuance, purchases, and growth. Conversely, if the premium to NAV weakens, new issuance is seen as dilutive, thereby preventing further digital asset accumulation.
This is why preferred shares have gained popularity in a DAT’s capital structure. The most common structure for these preferreds is variable-rate perpetual stock. While preferred equity is legally equity, it behaves economically like debt: it pays a stated dividend, sits senior to common stock in the capital stack, and provides investors with a predictable income stream. Unlike traditional debt, however, it has no maturity date and no principal repayment obligation. The DAT never has to repay the original capital, provided it continues to service the dividend. In many cases, the dividend rate adjusts periodically to help the preferred trade near its par value, typically $100. The use of this hybrid structure in the context of DAT accumulation results in what is known as “Digital Credit.”
Strategy positions STRC as "Short Duration High Yield Credit" or "Bitcoin-backed Money Market," paying dividends monthly in cash and adjusting rates each month to keep the price trading near its $100 par value. As of February 2026, STRC's indicated dividend rate is 11.25%. STRC was just the first of this type of instrument, though, and many DATs will issue variable rate perpetual preferred shares.
### The Apyx Vision: Pioneering Digital Credit
Digital Credit is powerful, but in its current form it remains largely confined to traditional markets. DAT preferred equity generates recurring cash dividends that are structured, transparent, and scalable. Yet those cash flows sit offchain in brokerage accounts, rather than flowing into the onchain economy.
Apyx bridges that divide.
Rather than depending on crowded basis trades or reflexive funding markets, Apyx anchors itself to the dividend layer created by DAT preferred equity. The protocol acquires preferred shares, aggregates their recurring cash flows, and converts those offchain dividends into programmable onchain yield.
The architecture is simple but game-changing. Digital assets reside on public balance sheets. Preferred equity finances their accumulation. Dividends are paid in cash. Apyx transforms those cash flows into a native onchain savings rail.
This is not a short-term trade. It is a structural connection between public capital markets and DeFi. As preferred issuance expands, dividend streams grow. As those dividend streams grow, the depth and resilience of onchain yield strengthen. More compelling dollar savings reinforce demand for the preferred layer that supports it.
That reinforcing loop is the "Digital Credit Flywheel."
For the first time, recurring cash flows generated in public markets can directly power onchain savings. Stablecoins reaching a trillion-dollar market is inevitable. The more important question is where the yield that underpins that growth will originate, and who will capture it. Apyx answers that question.
In the end, it all connects into one picture: more preferred issuances, larger dividend cash flows, greater onchain yield delivery, and increased stablecoin demand interlocking to form a liquidity flywheel. This is Apyx’s Digital Credit flywheel and the core idea behind “From Treasury Capital to OnChain Yield.”
# How Apyx Works
Overview of how user deposits are stored and utilized in Apyx
The Apyx protocol has four core components:
* **Users:** Individuals who interact with the protocol by depositing USDC to acquire apxUSD and, optionally, locking apxUSD to receive apyUSD.
* **Offchain Treasury:** Allocates incoming USDC to acquire a diversified basket of low-volatility, dividend-bearing perpetual preferred shares or highly liquid cash-equivalents. It collects dividend payments and converts the proceeds into onchain distributable yield.
* **Onchain Vault:** Receives yield and distributes it to apyUSD holders over time by increasing apyUSD’s redemption value.
* **Stock Market:** The external market where the protocol acquires the preferred assets or other more liquid backing assets used in the collateral basket.
### Process Flow
#### Minting apxUSD
End users obtain and use apxUSD through secondary markets. Like many other stablecoin projects, whitelisted users deposit collateral and receive newly minted apxUSD.
Any spreads and offchain execution expenses incurred during minting and redemption may be reflected in the price. Apyx generates minimal profit from minting and redemption; costs are limited to what is necessary to operate the protocol and prevent various attacks.
All redemption activity occurs at Redemption Value. New issuance is priced at $1; redemptions track the underlying basket.
#### Collateral Acquisition
The Offchain Treasury allocates incoming capital to acquire a basket of preferred assets ("Prefs") and short-term treasury bonds. Initially, the basket includes STRC and SATA, with additional assets added over time.
Refer to [Collateral Allocation](/solution-overview/example-collateral-allocation) for details.
Acquired Prefs are held in custody in designated accounts, and the Offchain Treasury manages allocation and operations. Since the backing assets are held offchain, Apyx provides regular third-party accounting attestations and transparent reporting on custody and collateral composition so users can independently verify the backing.
Refer to [Custody Overview](/collateral-and-custody/custody-overview) for details. Real time visibility into capital deployment and the current reserve position is available in the dApp dashboard.
#### Protocol Rewards Distribution
Dividends from Prefs are collected offchain, converted into apxUSD, and sent to the Apyx Onchain Vault. The vault distributes this yield to apyUSD holders in a stream over a 20 day period.
Users can lock apxUSD in the vault to receive apyUSD. apyUSD represents a locked position that accrues the yield sent to the vault, increasing in redeemable value over time.
Refer to [apyUSD Yield Distribution](/solution-overview/apyusd-yield-distribution) for details.
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The protocol is designed not to rehypothecate or lend deposited apxUSD. apyUSD yield is intended to be sourced from cashflows generated by Prefs.
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# Apyx Pips (Points Program)
Overview of the Apyx points propgram
Apyx Pips is the points program for Apyx. A Pip is equivalent to a point and represents your participation and engagement within the ecosystem.
The Apyx Pips campaign is designed to reward participation across key activities within the Apyx ecosystem, including on-app usage and DeFi liquidity engagement. Pips are earned through qualifying actions such as holding, locking, committing assets, providing liquidity, or trading yield-based tokenized products.
Season 1 of the Apyx Pips campaign ended on May 22, 2026. Season 2 started on May 23, 2026, and will run until October 11, 2026.
For any and all updates regarding Apyx Pips, please refer to our Twitter or Discord.
* Twitter:
* Discord:
{% hint style="info" %}
Participation is restricted for users in certain jurisdictions, including the United States, the European Union, the European Economic Area and any sanctioned jurisdiction. Users in those jurisdictions will not be able to access the relevant parts of the Apyx web application, including the dApp interface.
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### How It Works
The Apyx Pips campaign is organized into seasons, each of which is divided into multiple short-duration phases called "epochs." Epochs progress as the project reaches key milestones, marking each new phase of development. The campaign operates on a multiplier-based framework: for each eligible activity, points are awarded based on the USD value of the activity performed. With the exception of referrals, each activity earns pips daily.
These incentives are intentionally designed for long-term participants and genuine users of the protocol, not participants seeking a short-term airdrop with a fast exit. The Apyx Pips campaign is built for users who seek to engage with the ecosystem, deploy capital, and participate over time.
To preserve the integrity of the program and ensure fair distribution, any attempt to exploit, manipulate, or game the system may result in the removal of points or full disqualification.
### Referrals
Earn **5%** of your referred users' Pips, capped at 100% of your own Pips. No bonus is granted for using a referral link. [Generate your referral link →](https://app.apyx.fi/join)
### Tracking Your Pips
Pips are tracked in the [Rewards tab](https://app.apyx.fi/rewards) of the Apyx frontend. The same tab is where you commit apxUSD and Curve LP tokens to apply the relevant multipliers.
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Incentives are designed for long-term participants and genuine users of the protocol. Attempts to exploit, manipulate, or game the system may result in points removal or full disqualification.
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## Season 2 Details
When we launched the Apyx Pips program in March 2026, we made a simple promise:
> Deploy capital. Earn Pips. Get airdropped APYX.
Season 1 delivered on that promise with **5% of total APYX supply** allocated to early participants. Now, Season 2 begins, and in a rare move for DeFi, the reward pool is getting *larger*, not smaller.
Season 2 allocates:
* 6,000,000 APYX
* 6% of total APYX supply
* Bringing total community allocation across Seasons 1 & 2 to 11% of supply before TGE
Unlike many DeFi protocols, Apyx raised **zero venture capital**. There are:
* No private investor unlocks
* No VC token overhang
* No discounted insider allocations ahead of users
Apyx grew because users believed in the future of **onchain digital credit yield** and deployed capital accordingly. Season 2 is designed to reward that conviction.
## How Season 2 Works
Pips accrue daily based on the USD value of your eligible positions multiplied by the corresponding multiplier.
```
Pips = USD Value × Multiplier
```
Season 1 Pips carry forward automatically. Beginning **May 23, 2026**, all accrual transitions to the new Season 2 multipliers. Your total Season 2 Pip balance determines your share of the **6,000,000 APYX** Season 2 allocation.
## The Season 1 Loyalty Boost
If you participated in Season 1, every Pip earned during Season 2 receives a 1.2x Loyalty Multiplier.
There is:
* No minimum threshold
* Nothing to claim
* No extra action required
If your wallet was active during Season 1, the boost is applied automatically across all eligible Season 2 earning activity. This applies to holding, Pendle, Curve, lending, Royco positions. The loyalty boost exists to reward the earliest supporters of the protocol.
## Ways To Earn Pips
Season 2 introduces refreshed multipliers and expanded earning opportunities across DeFi. You can stack multiple strategies simultaneously.
### Holding & Commitment
The simplest way to earn Pips. While basic holding earns a modest rate, users willing to commit capital can earn substantially higher multipliers.
| Position | Multiplier |
| ------------------------ | ---------- |
| Hold apxUSD | 8x |
| Hold apyUSD | 4x |
| Commit apxUSD | 196x |
| Hold Senior Royco apyUSD | 4x |
| Hold Junior Royco apyUSD | 4x |
apxUSD and apyUSD held on supported chains earn Pips. Commitments continue to earn the highest multiplier in the program.
### Curve Liquidity
Providing liquidity earns enhanced rewards in exchange for taking on LP risk.
| Pool | Multiplier |
| ---------------------- | ---------- |
| Curve apxUSD/USDC LP | 60x |
| Curve apyUSD/apxUSD LP | 24x |
### Pendle
Pendle remains one of the highest-weight earning categories in the program, with Yield Tokens (YTs) and LP positions carrying some of the largest multipliers available.
#### Yield Tokens (YT)
| Position | Multiplier |
| ---------------------- | ---------- |
| YT apxUSD | 128x |
| YT apyUSD | 52x |
| YT Senior Royco apyUSD | 52x |
| YT Junior Royco apyUSD | 52x |
#### Liquidity Provision (LP)
| Position | Multiplier |
| ---------------------- | ---------- |
| LP apxUSD | 100x |
| LP apyUSD | 32x |
| LP Senior Royco apyUSD | 32x |
| LP Junior Royco apyUSD | 32x |
Supported apxUSD Pendle markets on Ethereum, Base, and BNB Chain earn the same rates. Legacy Pendle markets continue earning under their respective Season 2 multipliers.
### Lending & Vaults
Borrow-side activity earns Pips across supported lending venues.
#### Morpho Supply Markets
| Activity | Multiplier |
| --------------------------------- | ---------- |
| apxUSD to supported markets | 40x |
| apxUSD/PT-apyUSD-18JUN2026 Supply | 40x |
| apxUSD/PT-apxUSD-18JUN2026 Supply | 40x |
| apxUSD/apyUSD Supply | 40x |
#### Vaults
| Activity | Multiplier |
| ------------------------------ | ---------- |
| Alpha APXUSD V2 Vault Deposit | 44x |
| Hyperithm apxUSD Vault Deposit | 44x |
On lending markets, the borrow side earns Pips. Standard asset supply does not earn Pips unless explicitly listed above as a supported supply market or vault.
## What Changed From Season 1
Season 2 introduces several major upgrades:
* Bigger Reward Pool
* Season 1: 5% of APYX supply
* Season 2: 6% of APYX supply
* Total distributed before TGE: 11%
* Liquidity Earns More
* Curve LP multipliers increased across both pools.
* Lending Is Now Weighted
* Borrowing activity now earns meaningful Pips as apxUSD expands across DeFi.
* Royco Tranches Included
* Senior and Junior Royco positions now fully participate in rewards.
* Loyalty Boost Added
* Season 1 participants receive a 20% boost on all Season 2 Pips earned.
## Timeline
| Event | Date |
| ------------------ | ---------------- |
| Season 2 Begins | May 23, 2026 |
| Season 2 Ends | October 11, 2026 |
| APYX TGE & Airdrop | October 13, 2026 |
There is no gap between seasons. Positions continue accruing seamlessly into Season 2.
## Pendle Market Rollovers
Current Pendle markets will mature shortly after the season transition. New markets will go live before maturity. To continue earning uninterrupted:
1. Exit maturing markets
2. Roll into the new Pendle markets
3. Continue accruing Season 2 rewards
## APYX Token Utility
The APYX Token Generation Event (TGE) takes place on **October 13, 2026**. Following TGE, APYX holders will gain access to two staking systems:
### xAPYX (APYX-Denominated Staking Yield)
Users stake APYX and receive xAPYX. Protocol revenue is used to buy APYX on the market and feed it back into the staking vault. Result:
* xAPYX appreciates versus unstaked APYX over time
* Yield compounds directly in APYX
### yAPYX (Dividend-Bearing APYX Vault)
Users stake APYX and receive yAPYX. Protocol revenue accrues in apxUSD and is distributed to yAPYX holders as dividends. This extends the core Apyx model of dividend-backed digital credit directly to APYX stakers.
## Final Notes
Season 2 represents the next phase of the Apyx ecosystem:
* Larger rewards
* Expanded DeFi integrations
* Higher liquidity incentives
* Lending expansion
* Loyalty-based rewards
* APYX TGE approaching in October
Deploy capital. Deepen apxUSD adoption across DeFi. Let the multipliers work.
# apxUSD
apxUSD is Apyx’s synthetic dollar backed by a diversified basket of low-volatility, variable-rate, preferred shares issued by industry leading Digital Asset Treasuries (DATs).
The same mechanism that underpins apxUSD also enables apyUSD, a yield asset that accrues rewards from dividends generated by the DAT preferred equity backing apxUSD. apyUSD is designed as the first Digital Credit yield asset, bringing offchain dividend income onchain for programmatic distribution.
apxUSD is intended to be used as both collateral and a quote asset across DeFi and CeFi, with long-term demand driven by utility rather than short-term incentives.
### Collateral Allocation
The collateral backing apxUSD is dynamically allocated across preferred shares issued by various DATs.
The basket rebalances subject to issuer concentration, liquidity requirements for efficient execution, and coverage requirements that keep apxUSD overcollateralized. In redemption scenarios, the protocol liquidates preferred shares to USDC to settle redemption obligations; holders do not receive preferred shares directly.
[Learn more about the underlying collateral.](#collateral-allocation)
### Peg Stability Model
apxUSD maintains peg stability through four complementary mechanisms:
1. **Preferred Shares Price-Stabilization Dynamics**
Preferred shares used as collateral often include structural features that allow issuers to adjust dividend rates, helping keep trading prices near par.
2. **Overcollateralized Issuance Framework**
Redemptions occur at Redemption Value, which tracks the underlying basket. Total Collateral Value (the full reserve including the overcollateralization buffer) is published separately on the dashboard. The buffer grows through stress events rather than being drained by them
3. **Cross-Market Arbitrage**
Apyx may engage in arbitrage across multiple spot markets involving apxUSD to support its peg. Similar opportunities are also available to users whitelisted, allowing them to mint or redeem apxUSD to capture price differences across markets.
4. **Derivative-Based Tail Hedging Strategies**\
Apyx may deploy low cost, tail hedging strategies to reduce volatility in volatility spike scenarios where the preferred shares trade down significantly.
[Learn more about the Peg Stability Model.](#peg-stability-model)
### Minting and Redeeming
Eligible participants in permitted jurisdictions who are whitelisted, such as institutional market makers, may mint and redeem apxUSD through the protocol's designated issuance and redemption pathways. Redemptions are settled in USDC; the protocol does not transfer preferred shares directly to redeeming participants. In a drawdown scenario, the protocol would sell preferred share positions to USDC to facilitate redemption.
apxUSD grows through a demand-driven flywheel. When apxUSD trades at a premium relative to its backing, minters may mint additional apxUSD and purchase more preferred equity collateral. This expands the collateral base, deepens liquidity, and increases the dividend capacity that supports apyUSD.
General users can acquire apxUSD through permissionless external liquidity pools and swaps.
Eligible participants in permitted jurisdictions who are whitelisted Apyx, such as institutional partners and market makers, may mint and redeem apxUSD through the protocol's designated issuance and redemption pathways. Mint and redemption requests are processed quickly. To ensure stability, the protocol maintains a liquidity buffer sized against the largest historical TVL drawdowns observed in comparable stablecoins. Note that liquidity may be more limited outside of traditional trading hours and on weekends, though the buffer remains available at all times.
apxUSD is designed to trade between Redemption Value (a hard floor) and Total Collateral Value. Redemption Value moves with the underlying basket of preferred shares, dampened by the cash portion of the reserve. New apxUSD issuance is always priced at $1, giving the secondary market a consistent anchor.
Whitelisted participants can mint and redeem through the protocol's primary market at Redemption Value. There is also an RFQ (Request for Quote) redemption system that connects redemption requests with approved counterparties for competitive execution.
# apyUSD
apyUSD is the yield token for apxUSD, built using the ERC-4626 vault standard.
Users deposit apxUSD into a permissionless vault and receive apyUSD in return. Token balances do not rebase. Instead, yield accrues through a gradually increasing exchange rate, meaning each apyUSD can be redeemed for more apxUSD over time.
Yield is generated from the protocol’s underlying collateral stack.
### Key Information
* Underlying: apxUSD
* Standard: ERC-4626 vault (non-rebasing, accrual-based)
* Access: Permissionless; no KYB/KYC requirement
* Yield source: Dividends
* Distribution: Governed via on-chain parameters; rate may vary with market conditions
* Redemption: 1 apyUSD → apxUSD × exchangeRate (t ≥ 1)
{% hint style="info" %}
Participation is restricted for users in certain jurisdictions. Users located in such jurisdictions will be prevented from accessing the Apyx frontend.
{% endhint %}
### Redemption
Redemptions follow an asynchronous unlocking model (ERC-7540) and are not executed immediately.
The process consists of three steps: **request**, **cooldown (approximately 20 days)**, and **claim**. Once a redemption request is submitted, a cooldown period begins during which the assets remain locked. After the cooldown period has elapsed, the user must submit a claim transaction to receive the redeemed assets.
Each user may have only one pending redemption request at a time. Adding assets to an existing request resets the cooldown period from the time of the update.
During the cooldown period, users will not receive yield on their apyUSD, with the apxUSD/apyUSD exchange rate being fixed.
### Flexible Redemption
apyUSD redemptions support a more flexible redemption mechanism designed to improve liquidity and user optionality. When initiating a new redemption, users receive an onchain Unlock Receipt NFT representing their pending claim. Redemptions become claimable after 3 days, with an early redemption fee that declines linearly over time from 3.5% down to just 0.1%.
This mechanism allows users to:
* Exit faster when liquidity is needed
* Queue multiple unlock requests simultaneously
* Reduce fees by waiting longer before claiming
Looking ahead, redemption windows are expected to compress further as underlying digital credit instruments transition toward more frequent distributions.
# APYX
APYX is the governance token of the Apyx protocol. APYX is set to TGE on October 13, 2026.
APYX is not a speculative emissions token. It is designed to receive real cash flow from protocol reserve growth beginning on day one.
### Overview
APYX represents:
* Governance power over the Apyx protocol
* Economic rights to a portion of reserve growth
* Control over payout ratios and reserve allocation
* Exposure to structural income derived from preferred equity
APYX holders stake their tokens to receive a share of protocol reserve growth. Governance decisions directly impact how value flows through the system.
### Tokenomics
* Total Supply: 100,000,000 APYX
* No inflation, fixed supply
* No emissions schedule
* No future minting
All locked or vesting tokens follow a structured unlock schedule. Core team allocations vest over four years. The full unlock schedule is published prior to Token Generation Event (TGE).
#### Allocation & Float
APYX was funded by early contributors, strategic partners, and angel investors. There are:
* No venture capital allocations
* No discounted Series A overhang
* No short-term unlock cliffs designed for liquidity exits
This structure was intentional. APYX was designed to launch and exist without venture overhang.
#### Tight Float at Launch
Only a small percentage of supply is freely tradable at launch. Most tokens are subject to multi-year vesting schedules. Implications:
* Reduced structural sell pressure
* Lower circulating supply relative to fully diluted supply
* Long-term alignment between builders and token holders
Additionally, the Apyx Foundation does not earn staking rewards on its allocation. This ensures 100% of rewards go to community members, the core team, and early supporters.
### Value Accrual Model
APYX accrues value through reserve growth. The reserve represents everything the protocol owns. Growth comes from operational income, not token sales.
At launch:
* 50% of monthly reserve growth is paid to APYX stakers
* 50% remains in the reserve to compound and strengthen overcollateralization
Stakers may choose to receive rewards in:
* apxUSD (dollar-denominated)
* Additional APYX
Rewards must be actively claimed. The 50% payout ratio is a starting parameter and can be modified through governance. As the reserve and overcollateralization buffer grow, governance may increase the payout ratio.
### Sources of Reserve Growth
Reserve growth comes from three primary sources.
#### 1. Collateral–apyUSD Yield Spread
The protocol holds:
* DAT preferred equity
* U.S. Treasuries
Examples of preferred holdings include variable-rate perpetual preferreds issued by DATs. The yield generated from these instruments funds:
1. apyUSD yield payments
2. Excess yield allocated to the protocol reserve
The spread between collateral yield and apyUSD payouts is structurally positive. Preferred dividends are contractual obligations of the issuing DATs. They do not rely on funding rates, basis trades, or market speculation.
This is the protocol’s most predictable source of income.
#### 2. Preferred Equity IPO Participation
When a DAT issues new preferred stock, it typically prices below par.
Example:
* $100 par instrument
* IPO price around $80
Apyx may participate in these offerings and acquire preferred shares at discounted issuance prices. When the instrument trades toward par value, the protocol captures that appreciation. This generates capital gains that accrue to the reserve.
#### 3. Additional Income Channels
Smaller but meaningful contributors include:
* Issuance fees on apxUSD
* Redemption fees
* Lending preferred positions through brokerage accounts
* Other capital markets activities
Individually modest, collectively meaningful at scale.
### Governance
APYX governance controls:
* Reserve allocation across preferred instruments
* Payout ratio to stakers
* Risk parameters
* Protocol-level economic adjustments
Governance power is tied directly to economic outcomes.
Decisions impact:
* Overcollateralization levels
* Reserve growth rate
* Staker cash flow
Governance is not ceremonial. It governs real capital.
### **Overcollateralization Buffer Deployment**
In intermediate-risk scenarios, APYX governance may vote to deploy a portion of the overcollateralization buffer to support Redemption Value. The buffer is otherwise preserved as the final backstop for holders.
### The APYX DAT Thesis
The team behind Apyx also built DeFi Development Corp. (Nasdaq: DFDV), the first non-bitcoin Digital Asset Treasury. APYX is a strong candidate to support its own Digital Asset Treasury structure in the future.
A publicly traded vehicle accumulating APYX could create:
* Structural bid pressure
* Long-term token absorption
* Increased governance concentration
This remains a potential long-term strategic pathway.
### Staking
To receive reserve growth distributions:
1. Stake APYX
2. Select payout preference (apxUSD or APYX)
3. Claim rewards periodically
Rewards are not automatically rebased. They must be claimed.
### Why APYX Is Different
* Fixed supply
* No VC overhang
* Real cash flow from day one
* Structural preferred equity income
* Governance over capital allocation
* Compounding reserve model
* A play on DAT accumulation and stablecoin innovation
\
Furthermore, with half of reserve growth compounding and half flowing to stakers, a unique dual-engine is created:
1. Immediate yield
2. Long-term asset base growth
### Risk Considerations
APYX value depends on:
* Reserve growth
* Preferred dividend stability
* Governance decisions
* Market liquidity
* Regulatory developments
Participation may be restricted in certain jurisdictions. Users located in restricted jurisdictions may be prevented from accessing the Apyx frontend.
# xAPYX
### What is xAPYX?
xAPYX is the APYX staking vault for users who want their protocol rewards denominated in **APYX**.
Users deposit APYX into the xAPYX vault and receive xAPYX in return. As protocol revenue accrues, the vault uses its share of revenue to buy APYX and feed it back into the vault. Over time, this causes the xAPYX exchange rate to appreciate relative to unstaked APYX.
### How xAPYX Works
1. Stake APYX
2. Receive xAPYX
3. The vault accumulates additional APYX through protocol revenue
4. xAPYX appreciates against APYX over time
5. When you unstake, you receive your share of the APYX in the vault
In simple terms:
> xAPYX is designed for users who want to compound their APYX exposure.
### Why Stake Into xAPYX?
xAPYX may be best suited for users who are bullish on APYX long-term and prefer to earn more APYX rather than dollar-denominated dividends.
If APYX appreciates over time, users staking into xAPYX benefit from both:
* Exposure to APYX price appreciation
* Additional APYX accumulation through the vault
### xAPYX vs. yAPYX
Apyx offers two staking vaults for APYX holders:
| Vault | Yield Denomination | Best For |
| ----- | ------------------ | ------------------------------------------- |
| xAPYX | APYX | Users who want to compound APYX exposure |
| yAPYX | apxUSD | Users who want dollar-denominated dividends |
Both vaults give users exposure to protocol revenue. The difference is how that yield is delivered.
### Transferability
xAPYX is designed to be a transferable token. This means staked APYX positions do not necessarily have to sit idle.
Apyx plans to integrate xAPYX across DeFi, including collateral markets, lending venues, Pendle, and other applications.
### Cooldown Period
xAPYX has a 7-day cooldown when users want to exit.
This means users commit to a one-week unbonding period in exchange for access to protocol revenue.
### Governance
Staking into xAPYX does not reduce governance power.
Users receive voting weight based on the amount of APYX they stake. Since xAPYX compounds APYX inside the vault over time, voting power may also compound as the vault accumulates more APYX.
### Summary
xAPYX is the APYX staking vault for users who want to earn protocol revenue in APYX.
Stake APYX, receive xAPYX, and let the vault compound APYX exposure over time.
# yAPYX
yAPYX is the Dividend-Bearing Staking Vault for APYX holders.
### What is yAPYX?
yAPYX is the dividend-bearing APYX staking vault.
Users deposit APYX into the vault and receive yAPYX in return. As protocol revenue accrues, the vault accumulates apxUSD and distributes it to yAPYX holders as dividends.
In simple terms:
> Stake APYX. Earn dollar-denominated dividends in apxUSD.
yAPYX is designed to extend the core Apyx model, a dividend-backed protocol, directly to APYX holders.
## How yAPYX Works
1. Stake APYX
2. Receive yAPYX
3. Protocol revenue accrues to the vault
4. Revenue is accumulated in apxUSD
5. apxUSD is distributed to yAPYX holders as dividends
Unlike xAPYX, where rewards compound in APYX itself, yAPYX distributes yield in dividend-backed dollar form.
## Why Stake Into yAPYX?
yAPYX may be best suited for users who want:
* Predictable dollar-denominated yield
* Exposure to protocol cash flow
* Dividends instead of APYX compounding
* Long-term APYX governance participation while generating income
This makes yAPYX the natural option for users who prioritize cash flow generation over maximizing APYX exposure.
## yAPYX vs. xAPYX
Apyx offers two staking vaults for APYX holders:
| Vault | Yield Denomination | Best For |
| ----- | ------------------ | ----------------------------------------------- |
| xAPYX | APYX | Users who want compounded APYX exposure |
| yAPYX | apxUSD | Users who want dividend-backed dollar dividends |
Both vaults receive exposure to protocol revenue.
The difference is entirely about:
* **How rewards are paid**
* **What type of exposure users want**
Users bullish on APYX appreciation may prefer xAPYX.
Users seeking predictable digital credit cash flow may prefer yAPYX.
## Transferability
yAPYX is designed to be transferable across DeFi.
Apyx plans to integrate yAPYX across:
* Lending markets
* Collateral venues
* Pendle
* Additional DeFi applications
This allows users to maintain productive staking positions while still participating across the broader DeFi ecosystem.
## Cooldown Period
yAPYX includes a 7-day cooldown.
Users entering the vault commit to a one-week unbonding period when exiting in exchange for access to protocol revenue sharing.
## Governance Rights
Staking into yAPYX does not reduce governance participation. yAPYX holders maintain voting power based on the amount of APYX staked in the vault. The decision between xAPYX and yAPYX is about yield preference, not governance rights.
## Protocol Revenue & Staker Alignment
At launch, more than 50% of total APYX supply is intentionally non-staking by design.
This includes:
* Foundation allocations
* Undistributed future airdrops
* Growth reserves
These allocations do not participate in staking rewards.
As a result, the portion of protocol revenue allocated to stakers is shared among a smaller active staking base, increasing the effective share earned by participating stakers.
## Summary
yAPYX is the dividend-bearing staking vault for APYX holders.
Stake APYX, receive yAPYX, and earn protocol revenue distributed in apxUSD.
For users who want dividend-backed dollar-denominated cash flow backed by the growth of onchain digital credit yield, yAPYX is designed to be the natural staking choice.
# Apyx & DAT Risks
The risks associated with Apyx and Digital Asset Treasuries (DATs), as well as common misconceptions related to DATs.
Apyx is designed to deliver yield sourced from dividend-bearing preferred equity issued by Digital Asset Treasuries (DATs). apxUSD is not a fiat-backed stablecoin. apyUSD yield is not guaranteed. Neither token is risk-free.
This section outlines the principal risks associated with:
* apxUSD
* apyUSD
* Offchain collateral custody
* Digital Asset Treasuries (DATs)
* Smart contracts and DeFi infrastructure
### I. Structural Design Risk
#### No Fixed 1-1 Peg
apxUSD is **not designed as a strict 1-1 peg instrument**. The protocol explicitly avoids fixed-peg representations. apxUSD may trade modestly above or below a one-dollar reference value.
This design:
* Reduces levered looping
* Encourages organic, long-term participation
* Slows reflexive TVL expansion
* Allows liquidity buffers to scale responsibly
However, users must accept modest price variability.
### II. Collateral & Market Risk
apxUSD is backed primarily by perpetual, dividend-bearing DAT preferred equity, along with cash and short-term treasuries. These are public securities. They are not insured deposits.
#### Preferred Equity Market Risk
Preferred shares:
* Trade in public markets
* Can deviate from par value
* Depend on issuer dividend policy
* Are subject to liquidity conditions
Dividend-adjustment mechanisms are economic tools, not legal guarantees. In stressed markets, preferred prices may decline.
#### Credit & Counterparty Risk
The value of apxUSD depends on the creditworthiness of DAT issuers. If a DAT:
* Experiences financial distress
* Defaults on obligations
* Enters restructuring or bankruptcy
The market value of its preferred shares may decline significantly, potentially to zero. Preferred equity ranks below debt in the capital structure. In insolvency scenarios, recovery may be limited or nonexistent.
#### Dividend & Yield Risk
apyUSD yield depends entirely on dividends from DAT preferred shares. Dividends may be:
* Reduced
* Suspended
* Delayed
* Modified
If dividends decline, apyUSD yield declines. Yield is variable and set monthly.
#### Liquidity Risk
DAT preferred shares are generally less liquid than U.S. Treasuries. During stress:
* Bid-ask spreads may widen
* Execution costs may increase
* Collateral liquidation may impact price
The protocol maintains a cash and treasury buffer to mitigate this risk, but liquidity constraints cannot be eliminated.
### III. Peg Stability & Hedging Limitations
Apyx seeks to reduce volatility relative to underlying preferreds. Target volatility is approximately 2% standard deviation. Risk management tools include:
* Cash/treasury buffer
* Protocol-Owned Liquidity
* Variable monthly payout adjustments
* Diversification across issuers
* Optional high-gamma derivative hedging
As described in our hedging framework Hedging Overview, we may deploy put options on:
* DAT equities
* Underlying crypto assets
However:
* Hedging costs capital
* Timing may be imperfect
* Hedges do not eliminate issuer default risk
* Correlations may increase in systemic stress
Hedging reduces certain volatility risks; it does not eliminate structural credit risk.
### IV. Offchain Custody Risk
Most collateral is acquired offchain and held with third-party custodians.
Risks include:
* Custodian insolvency
* Operational failure
* Fraud or misconduct
* Settlement delays
* Regulatory intervention
* Security breaches
Collateral may become inaccessible or unrecoverable in certain scenarios. Monthly PCAOB-level attestations improve transparency but do not eliminate custodial risk.
### V. Redemption & Timing Risk
apyUSD redemptions follow an asynchronous model:
* \~20-day cooldown
* One pending request per user
* Cooldown resets if modified
* No yield during cooldown
Users bear timing and market risk during the unlock period.
### VI. Smart Contract & Technical Risk
The protocol relies on smart contracts and DeFi integrations. Risks include:
* Smart contract bugs or vulnerabilities
* Governance misconfiguration
* Oracle failure
* Integration errors
* Cross-chain bridge exploits
* Third-party DeFi protocol risk
Audits, testing, and monitoring reduce but do not eliminate technical risk.
### VII. Cross-Chain & Third-Party Platform Risk
apxUSD may be deployed across multiple blockchain networks and integrated into third-party applications. Risks include:
* Bridge exploits or failures
* Loss of funds in cross-chain transfers
* Interaction with malicious smart contracts
* Integration by unauthorized third-party platforms
The Issuer does not control third-party integrations and disclaims responsibility for losses arising from their use.
### VIII. Regulatory & Legal Risk
Digital asset regulation is evolving rapidly. Changes may impact:
* Stablecoin classification
* Securities law interpretation
* Custody requirements
* Geographic availability
* Tax treatment
* Enforcement exposure
Regulatory changes may restrict access, reduce liquidity, or impair operations.
### IX. Tax Risk
Minting, redeeming, transferring, or accruing yield may trigger taxable events for users. Tax treatment:
* Varies by jurisdiction
* May depend on distribution mechanics
* May create liabilities at unexpected times
Users are responsible for understanding and complying with applicable tax laws. The platform does not provide tax advice.
### X. DAT Risks: Facts vs. Fiction
Because apxUSD collateral contains DAT preferred equity, understanding DAT risk is essential. Much of the public narrative surrounding DATs is incorrect. Below we separate real risks from misconceptions, based on our internal credit evaluation framework.
#### The Real Risks
**1. Bankruptcy Risk**
In a worst-case scenario, a DAT could go bankrupt and its preferred equity could become impaired or worthless. Preferred equity sits:
* Below debt
* Above common stock
In liquidation, debt holders are paid first. A DAT could face distress if:
* Crypto prices decline severely and remain depressed for years
* Fixed obligations exceed available liquidity
* Capital markets access closes
* Management misallocates capital
We evaluate asset coverage, debt maturity profiles, and dividend sustainability to assess this risk.
**2. Crypto Sales & mNAV Death Spiral Risk**
The DAT model is built on accumulation. Selling crypto can:
* Reduce asset coverage
* Compress mNAV
* Increase perceived credit risk
* Trigger reflexive confidence collapse
This scenario requires multiple simultaneous failures, including market collapse and capital markets closure. While possible, it is not mechanically triggered by price declines alone. We monitor management discipline and capital structure to avoid exposure to vulnerable structures.
#### Common Misconceptions
**Myth: There’s a fixed liquidation price.**\
Most DAT debt is unsecured. Unsecured creditors cannot force liquidation solely due to crypto price declines. Liquidation occurs upon payment default, not volatility.
**Myth: DATs are equivalent to margin accounts.**\
DATs are public companies with disclosed capital structures and defined debt hierarchies. They are not levered offshore lenders with short-term liabilities.
**Myth: Activists will force liquidation.**\
Many DATs are founder-controlled, and shareholders often favor accumulation. Forced liquidation may destroy value rather than unlock it.
#### How Apyx Evaluates DAT Credit Risk
We evaluate each preferred instrument based on:
* Asset coverage
* Interest and dividend coverage
* Debt structure and covenant terms
* Acceleration clauses
* Capital allocation discipline
* Transparency and communication
* Preferred market liquidity
* Historical drawdown behavior
We avoid exposure to structures with price-triggered liquidation mechanics.
### XI. Correlation & Systemic Risk
DAT preferreds may correlate with:
* Crypto markets
* Equity markets
* Liquidity cycles
* Capital market sentiment
In systemic stress, correlations may increase unexpectedly. Diversification reduces concentration risk but does not eliminate systemic exposure.
### XII. Growth & TVL Risk
The protocol targets sustainable growth. However:
* Rapid TVL growth may outpace buffer expansion
* Yield compression may occur
* Competitive products may emerge
* Market perception may shift
We explicitly avoid hypergrowth at the expense of stability.
### Summary
Apyx is designed to:
* Deliver yield sourced from public dividend-paying instruments
* Maintain overcollateralization
* Reduce volatility relative to underlying preferreds
* Employ layered risk management tools
However:
* It is not a fixed-peg stablecoin
* Yield is not guaranteed
* Bankruptcy risk exists
* Death spiral risk exists
* Market volatility can occur
* Regulatory changes may affect operations
Our philosophy is simple: We do not pretend these risks do not exist. We study them. We price them. We manage them.
Participation in Apyx should be based on a clear understanding of the credit, market, operational, and regulatory risks involved.
# Capitalization Framework
Apyx publishes two distinct metrics on the transparency dashboard that govern every interaction with the protocol.
#### Redemption Value
The price at which all redemption occurs, with a small spread for liquidity and slippage. Redemption Value tracks the underlying basket of preferred shares and cash, dampened by the cash portion of the reserve. It applies identically across calm and stressed conditions, and to all participants.
New apxUSD issuance is always priced at $1, providing a consistent anchor for secondary markets.
#### Total Collateral Value
The full value of the reserve, including the overcollateralization buffer.
The gap between Redemption Value and Total Collateral Value is the buffer, visible to everyone at all times.
#### How apxUSD Trades
In practice, apxUSD trades between Redemption Value and Total Collateral Value:
* Redemption Value acts as a hard floor where arbitrageurs step in.
* The overcollateralized reserve supports pricing above it.
#### Role of the Overcollateralization Buffer
The overcollateralization buffer is not consumed during routine redemptions. It serves two purposes:
1. **Risk reduction without sacrificing yield.** The buffer is allocated to preferred equity, with the yield it generates flowing to the rest of the portfolio. As the buffer grows, the remainder of the collateral can shift toward cash while maintaining the same yield output—reducing volatility without compromising returns to apyUSD holders.
2. **Final backstop.** In a catastrophic scenario—a devastating hack, wind-down, or any event ending the protocol's future viability—Total Collateral Value becomes the redemption value, and the entire reserve, buffer included, is distributed pro-rata to remaining holders.
Governance token holders may also vote to deploy a portion of the overcollateralization buffer in intermediate-risk scenarios to support Redemption Value.
#### RFQ Redemption
In addition to the protocol's primary-market redemption pathway, Apyx offers a Request for Quote (RFQ) redemption system. Users may submit redemption requests through a structured RFQ process, allowing approved counterparties to provide competitive execution against the underlying reserve.
# Example Collateral Allocation
The collateral backing apxUSD will be dynamically allocated across preferred shares issued by various Digital Asset Treasuries (DATs), with any allocation changes reflected in real-time on the transparency dashboard. Additionally, the backing will contain cash and short term treasuries as a liquidity buffer. The table below provides an illustrative example of a portfolio allocation:
# STRC
Strategy Inc Variable Rate Series A Perpetual Stretch Preferred Stock
Stretch (STRC) is Strategy’s perpetual preferred stock, currently paying an 11.25% annual dividend that is distributed monthly in cash. STRC’s dividend rate is adjusted each month to encourage trading near its $100 par value and to reduce price volatility.\
{% embed url="" %}
### General Terms
* **Issuer:** Strategy, Inc.
* **Ticker:** STRC (Listed on the Nasdaq Global Select Market)
* **Stated Amount:** $100.00 per share (dividends accrue on the stated amount)
* **Liquidation Preference:** Initially $100.00 per share, subject to adjustment (and will not be adjusted below $100)
### Dividend Structure
* **Payment Frequency:** Monthly in cash, when, as and if declared by the Board
* **Rate Floor / Reduction Limits:** Strategy may adjust the monthly dividend rate, but it is not permitted to reduce the rate below the applicable one-month term SOFR level, and reductions are subject to a cap based on 25 bps plus a SOFR-based component
* **Dividend History:**
Strategy management’s current intention, subject to change in its sole discretion, is to evaluate STRC using the five-day VWAP for the five trading days prior to the last trading day of the month and to recommend the following actions to the Board:
### Redemption & Repurchase Rights
* **Optional Redemption (Issuer Right):** The issuer may redeem shares at a cash price of $101.00 per share (or higher), plus accumulated unpaid dividends. Partial redemptions must be in a minimum aggregate stated amount of $250 million. The issuer cannot redeem shares during the first three months after issuance unless the arithmetic average of the closing prices over 20 consecutive trading days exceeds $100 per share.
* **Clean-Up Redemption:** If less than 25% of the total issued shares remain outstanding, the issuer may redeem all remaining shares at the liquidation preference (as of the business day before notice) plus accumulated and unpaid dividends, not a fixed $100. The liquidation preference may adjust based on recent sale prices or averages but will not fall below $100.
* **Tax Event Redemption:** If a tax event occurs (e.g., changes in tax law affecting deductibility or treatment of dividends), the issuer may redeem all shares at the liquidation preference plus accumulated dividends.
* **Fundamental Change Put (Holder Right):** In the event of a fundamental change (e.g., specific mergers, acquisitions, or changes in control), holders have the right to require the issuer to repurchase shares at the $100.00 stated amount plus accumulated dividends.
### Ranking and Priority
In the event of a liquidation or winding up of Strategy Inc., STRC ranks as follows:
* **Senior to:** Common Stock (Class A and Class B) and junior preferred stocks (e.g., STRK, STRD).
* **On parity with:** Dividend parity stock and liquidation parity stock (e.g., any future issuances of equally ranked preferred stock, such as STRE).
* **Junior to:** Existing and future indebtedness, specific senior preferred stocks (e.g., STRF, the 10.00% Series A Perpetual Strife Preferred Stock), and structurally junior to all existing and future indebtedness and other liabilities (including trade payables) of subsidiaries.
### Use of Proceeds
Capital raised by Strategy Inc. through STRC issuances is utilized for general corporate purposes, specifically including the acquisition of bitcoin, aligning the underlying value accrual with digital asset treasury strategies.
Additional uses may include working capital, payment of dividends on senior preferred stock, other capital expenditures, repurchases of shares of the company's Class A common stock, repayment of debt, or funding acquisitions of businesses, assets, or technologies that complement its current business.
# SATA
Strive Inc Variable Rate Series A Perpetual Preferred Stock
SATA is Strive's perpetual preferred stock, currently paying an 12.25% annual dividend that is distributed monthly in cash. SATA’s dividend rate is adjusted each month to encourage trading near its $100 par value and to reduce price volatility.\
{% embed url="" %}
### General Terms
* **Issuer:** Strive, Inc.
* **Ticker:** SATA (Listed on the Nasdaq Global Select Market)
* **Stated Amount:** $100.00 per share (dividends accrue on the stated amount)
* **Liquidation Preference:** Initially $100.00 per share, subject to adjustment as described in this prospectus supplement, but will not be adjusted below $100.00 or above $110.00 per share
### Dividend Structure
* **Payment Frequency:** Monthly in cash, when, as and if declared by the Board
* **Rate Floor / Reduction Limits:** Strive may adjust the monthly dividend rate, but it is not permitted to reduce the rate below the applicable one-month term SOFR level, and reductions are subject to a cap based on 25 bps plus a SOFR-based component.
* **Dividend History:**
Strive, Inc. has the exclusive right to adjust the regular dividend rate per annum applicable to any subsequent regular dividend period. If no adjustment is made or noticed properly, the rate from the prior period automatically carries forward. The initial regular dividend rate is set at 12.00% per annum, commencing from the original issue date.
Strive's stated intention is to adjust the monthly regular dividend rate per annum in a manner believed to maintain the SATA Stock's trading price within a long-term range of $95 to $105 per share.
For example, the rate may be increased if the trading price falls below $95 (to attract buyers and support the price) or decreased if it exceeds $105 (to encourage selling and moderate the price).
However, this intention is entirely subjective, based on the issuer's assessment of prevailing market and capital conditions, and can be altered at any time without notice or justification. It does not constitute a contractual obligation or enforceable commitment.
### Redemption & Repurchase Rights
* **Optional Redemption (Issuer Right):** The issuer may redeem shares at a cash price of $110.00 per share (or higher), plus accumulated unpaid dividends. However, the issuer may not redeem less than all of the outstanding SATA Stock unless at least $50.0 million aggregate stated amount of SATA Stock is outstanding and not called for redemption as of the time the issuer provides the related redemption notice.
* **Clean-Up Redemption:** If less than 25% of the total issued shares remain outstanding, the issuer may redeem all remaining shares. The redemption price is the liquidation preference (as of the business day before notice) plus accumulated and unpaid dividends, not a fixed $100.
* **Tax Event Redemption:** If a tax event occurs (e.g., changes in tax law affecting deductibility or treatment), the issuer may redeem all shares at the liquidation preference plus accumulated dividends.
* **Fundamental Change Put (Holder Right):** In the event of a fundamental change (e.g., specific mergers or changes in control), holders have the right to require the issuer to repurchase shares at the $100.00 stated amount plus accumulated dividends.
### Ranking and Priority
In the event of a liquidation or winding up of Strive Inc., SATA ranks as follows:
* **Senior to:** Common Stock (Class A and Class B) and liquidation junior stock.
* **On parity with:** Dividend parity stock and liquidation parity stock (e.g., any future issuances of equally ranked preferred stock).
* **Junior to:** Existing and future indebtedness, and structurally junior to all existing and future indebtedness and other liabilities (including trade payables) of subsidiaries.
### Use of Proceeds
Capital raised by Strive Inc. through SATA issuances is utilized for general corporate purposes, specifically including the acquisition of bitcoin, aligning the underlying value accrual with digital asset treasury strategies.
Additional uses may include working capital, purchase of income-generating assets, other capital expenditures, repurchases of shares of the company's Class A common stock, repayment of debt, or funding acquisitions of businesses, assets, or technologies that complement its current business.
# Peg Stability Model
How apxUSD maintains its peg through collateral design, over-collateralization, and cross-market arbitrage
Apyx maintains apxUSD’s peg stability through a combination of (1) the price stabilization characteristics of the preferreds as collateral, (2) an overcollateralized issuance framework for apxUSD itself, (3) cash & treasuries buffer within the capital basket (4) cross-market arbitrage incentives in secondary markets.
### Price Stabilization Mechanism of STRC as Collateral
At the current stage, apxUSD primarily uses STRC as its core collateral asset. STRC is Strategy’s variable rate, non-convertible perpetual preferred equity, structured around a $100 stated amount per share, with dividends determined and paid on a monthly basis.
Importantly, STRC is not a legally fixed peg instrument. Instead, it is designed with an embedded economic mechanism intended to encourage trading near its reference value. Strategy retains discretion to review and adjust the dividend rate each month with the stated objective of keeping STRC trading around its $100 par or stated value and reducing price volatility.
The intuition behind this mechanism is straightforward:
* When STRC trades at a discount to its reference value, an upward adjustment to the dividend rate can raise yield relative to price, supporting demand and improving price recovery.
* When STRC trades at a premium, a downward adjustment can reduce excess yield incentives and help moderate price deviations.
Rather than enforcing a hard peg, STRC relies on dividend policy as a market-based lever to guide trading behavior toward a reference price range. apxUSD is designed on top of this collateral profile and explicitly accounts for STRC’s stabilization characteristics.
### Overcollateralized Issuance Framework of apxUSD
While STRC provides a degree of inherent price stabilization, apyx adds an explicit overcollateralization layer. The total apxUSD minted is constrained by the market value of the collateral, ensuring collateral value exceeds outstanding liabilities by a defined margin.
Importantly, the overcollateralization buffer is **not** consumed during routine redemptions. All mint and redeem activity occurs at **Redemption Value**, which tracks the underlying basket of preferred shares and cash. The buffer—the gap between Redemption Value and **Total Collateral Value**—is preserved through stress events and grows over time via yield spreads and collateral appreciation.
### Cash & Treasuries Buffer
Potentially the strongest volatility hedge is the cash and treasuries buffer. With the preferreds generating strong yield, a portion of the collateral can be held in treasuries to reduce volatility, without meaningfully reducing the overall yield of the collateral base.
### Cross-Market Arbitrage
While the overcollateralization framework governs the soundness of apxUSD issuance and redemption, deviations from the one-dollar reference price in secondary markets are addressed through arbitrage incentives executed by eligible whitelist participants.
* **When apxUSD Trades Above $1.00 (Premium):**\
Eligible participants may use the protocol’s minting pathway to mint apxUSD under predefined terms and sell it into external markets where apxUSD is trading at a premium. This increases circulating supply and applies downward pressure on the market price, encouraging convergence toward the reference level.
* **When apxUSD Trades Below $1.00 (Discount):**
Eligible participants may acquire apxUSD at a discount in secondary markets and redeem it through the protocol for dollar-equivalent value. This reduces circulating supply while increasing buy-side demand, supporting price recovery toward the reference level.
These arbitrage dynamics align trading incentives with peg stability, helping apxUSD trade near its reference value across a range of venues.
# Yield Distribution
How apyUSD receives rewards
### Protocol Revenue Explanation
apyUSD yield is sourced from semi-stable preferred shares held offchain in custody. For example, STRC pays dividends at an annualized rate of 11% and SATA at an initial rate of 12.5%, with dividends paid monthly in cash. These proceeds are converted into apxUSD and credited to the apyUSD vault via the `YieldDistributor`.
{% hint style="info" %}
The protocol does not rehypothecate, lend, or otherwise utilize deposited apxUSD for any purpose.
{% endhint %}
### Distribution Mechanism
Yield credited to the apyUSD vault utilizes a linear vesting mechanism implemented by the `LinearVestV0` contract. Instead of a single lump-sum distribution, yield is streamed continuously over a configurable period (e.g., 20 days).
Each month, the yield rate is set for the following month, based on the yield generated by the collateral base the prior month. The yield rate is set in dollar terms, e.g. $1M of yield will be paid this month. That yield is paid across all apyUSD not currently undergoing cooldown, meaning new apyUSD that is locked instantly begins receiving yield, reducing the overall % yield for everyone else. On the flip side, any apyUSD that enters the cooldown phase is removed from the pool set to receive yield, meaning the remaining apyUSD receive a higher % yield.
This structure supports protocol stability (potentially at the expense of growth), by creating a slower expansion and contraction curve.
# How to Buy apxUSD
General users can acquire apxUSD on the secondary market
Using the Apyx Swap tab, general users can acquire apxUSD by swapping USDC through the Curve apxUSD/USDC pool:
1. Users initiate an apxUSD purchase in the dApp interface by selecting USDC as the input asset.
2. The transaction is executed with MEV protection and routed via Li.Fi.
3. This flow allows users to swap USDC without interacting directly with the protocol’s minting or collateral mechanics. Small imbalances may emerge in the onchain AMM pool over time, creating incentives for whitelisted participants to rebalance the market through the mint and redemption workflows described below.
Additionally, over time, users will be able to acquire apxUSD across a wide range of DeFi, CeFi, and TradFi venues.
Minting apxUSD involves sending approved assets, like USDC, to the Apyx protocol in exchange for newly issued apxUSD. Redeeming apxUSD involves burning apxUSD to receive USDC. Redemption does not entitle the holder to the underlying preferred shares; the protocol liquidates collateral positions as needed to fund USDC redemption settlement.
# How to Lock apxUSD
Users who lock apxUSD can receive rewards generated by the protocol
{% hint style="info" %}
The information in the video below and on this page is not intended for any person in a sanctioned jurisdiction or any person who resides in, or has its registered office in, the United States, the European Union, or the European Economic Area.
{% endhint %}
Using the Apyx Earn tab, users can lock apxUSD to receive apyUSD vault shares and earn protocol-generated rewards:
1. Users lock or unlock by clicking “Lock” or “Unlock,” which prompts their wallet to sign the transaction.
2. Once confirmed, the position transitions atomically in a single transaction and users receive apyUSD (when locking) or apxUSD (when unlocking).
### Key Information
* Rewards accrue to the apyUSD vault and are distributed linearly, causing the value of apyUSD to increase over time. As a result, users do not need to claim rewards separately; simply holding apyUSD is sufficient.
* When users initiate an unlock, the amount of apxUSD received reflects the originally locked principal plus the accrued increase in apyUSD value from the time of locking up to the unlock request.
* Unlocking follows a 20-day cooldown. After the cooldown period, apxUSD becomes available to withdraw.
# How to Commit Position for Points
Using the Apyx Rewards tab, users can commit apxUSD and Curve LP tokens to earn higher multipliers:
1. Users click “Commit apxUSD,” “Commit USDC/apxUSD LP Token,” or “Commit apxUSD/apyUSD LP Token,” and a commit window opens.
2. Users enter the position amount in the window and click “Commit,” which prompts their wallet to sign the transaction.
3. Once confirmed, the position is committed and the multiplier is applied.
**Unable to committ in app?** \
Make sure your adblocker isn't blocking the Apyx RPC (rpc.walletconnect.org) by whitelisting app.apyx.fi.
*Note: Committing apxUSD current earns committers a 196x points multiplier.*
# Custody Overview
Custody refers to where the protocol’s backing collateral assets are held.
The collateral backing Apyx is primarily comprised of TradFi assets, e.g. preferred equity and treasuries. This requires Apyx to access liquidity on a TradFi venue like Nasdaq in order to purchase the underlying preferred shares or treasuries. Once acquired, these assets are held in custody under third-party prime brokerage accounts.
### Transparency and Verifiability
Because the protocol’s core collateral exists offchain, Apyx is committed to ensuring users can independently verify the collateral. To support this, Apyx will obtain third-party accounting attestations from a PCAOB-registered audit firm, which is the same class of firm permitted to audit U.S. public companies. These attestations will be published on a monthly basis.
Importantly, these reports are not lightweight confirmations such as agreed-upon procedures (AUP) engagements, custodian “confirmation emails,” or exchange and onchain dashboard screenshots. Apyx intends to publish examination-level, assertion-based attestations designed to provide materially stronger assurance on the stated backing position.
Apyx actively explores and adopts verification tooling that enables users to apply a “don’t trust, verify” standard to the offchain components of the protocol.
# Transparency
### [Accountable Dashboard](https://accountable.apyx.fi/)
The Accountable dashboard provides independent, near real-time visibility into the assets backing apxUSD, including supply, reserves, and collateral coverage. Built with third-party verification, it allows anyone to audit the system at any time, not just trust it. For users, that means greater confidence, clearer risk visibility, and a new standard of transparency as digital credit continues to scale. The dashboard publishes two distinct metrics:
* **Redemption Value** — the price at which all minting and redemption occurs.
* **Total Collateral Value** — the full value of the reserve, including the overcollateralization buffer.
### [Dune Dashboard](https://dune.com/apyx_fi)
The Dune dashboard aims to provide a more complete view into the Apyx ecosystem, including trading volumes, liquidity, and price based on on-chain data.
### Custodian Attestations
Each month, we work with custodians to obtain attestations that validate that the backing assets exist, remain under custody control, and are valued appropriately.
**Wolf & Company**
{% file src="/files/pEyjGe0aOkdBDcQwQ3QB" %}
{% file src="/files/qbLmeTbarNfunx4RA5Tw" %}
{% file src="/files/TwEKRgLw28PVIDvetRKc" %}
{% file src="/files/LZ6VMZCnW5xyZoGpJR89" %}
# Accountable Dashboard
This page explains the Apyx Accountable dashboard, why its Proof-of-Reserves can be trusted, what Apyx can and cannot influence, and how each category of reserve assets is defined.
### What Is The Apyx Accountable Dashboard?
The [Apyx Accountable dashboard](https://accountable.apyx.fi/) is a live, public view of the assets that back the Apyx protocol. It is powered by [Accountable](https://docs.accountable.capital/), a Proof-of-Reserves provider that connects directly to the accounts and wallets where the Apyx protocol holds assets and continuously verifies their balances.
The dashboard groups the protocol's reserves into the following categories:
* STRC
* SATA
* Cash & Equivalents
* Other
The dashboard also provides a breakdown of the total supply of apxUSD. Each category is defined in detail below.
### Why Apyx Trusts Accountable
Accountable provides an end-to-end verifiable Proof-of-Reserves. Rather than relying on a self-reported balance sheet or a point-in-time snapshot, Accountable verifies the underlying account balances directly and continuously.
Accountable provides official connectors to brokerage accounts, exchange accounts, and blockchain wallets to read balances from the source. Figures displayed on the dashboard reflect assets that have been retrieved through Accountable’s official connectors.
The Accountable application runs in an [AWS Nitro Enclave](https://aws.amazon.com/ec2/nitro/nitro-enclaves/). This is what makes the proof trustworthy even though the Apyx Foundation operates the infrastructure. The enclave is an isolated, hardened compute environment that publishes cryptographic measurements of the binary that is running.
Anyone can compare the published measurements against the expected values for Accountable's official binary to confirm that Apyx is running unmodified Accountable software and has not altered it. The signing key can also be verified to be part of AWS's official Nitro Enclave PKI structure to verify that the response hasn't been modified, and the measurements and signature were produced by the AWS Nitro Enclave.
For a deeper explanation of the enclave architecture and attestation, see the [Accountable documentation](https://docs.accountable.capital/).
### What Can Apyx Control?
Accountable's design intentionally limits what Apyx can influence, and the boundaries are worth stating plainly:
* **Apyx deploys the infrastructure that Accountable runs on.** The Apyx Foundation operates the host environment, but the PCR attestations described above proves the Accountable software running on it is unmodified.
* **Apyx requests changes and updates to the dashboard,** such as display and presentation changes. Apyx could directly modify the UI being displayed, but cannot modify the data being returned or the Accountable binary and connectors without it being cryptographically obvious.
What Apyx cannot do is alter the verified balances or fake the proof of reserves: the enclave and its attestation make this cryptographically obvious.
### Reserve Asset Categorization
This section describes how assets shown in the *Reserves Breakdown* are categorized.
#### STRC
STRC held in the Foundation brokerage account(s) or onchain in STRCx. STRC held at the brokerage are also attested in our [monthly attestations by Wolf & Co.](https://docs.apyx.fi/collateral-and-custody/third-party-attestation)
#### SATA
SATA held in the Foundation brokerage account(s). SATA held at the brokerage are also attested in our [monthly attestations by Wolf & Co.](https://docs.apyx.fi/collateral-and-custody/third-party-attestation)
#### Cash & Equivalents
Cash & Equivalents includes stablecoins, USD, or treasury bills held in the Foundation brokerage account(s), exchange account(s), and wallet(s). It also includes stablecoins deployed in liquidity positions, open orders, or to lending platforms.
When a user sells apxUSD into cash liquidity provided by the Apyx protocol, *Cash & Equivalents* is reduced and *Inventory* is increased. For example, if a user sells 1 apxUSD for 1 USDC then *Inventory* increases by 1 apxUSD (taking 1 apxUSD out of circulation) and *Cash & Equivalents* decreases by 1 USDC.
#### Other
Other covers positions that do not fall into *STRC*, *SATA*, or *Cash & Equivalent.* Examples include ETH held for paying gas fees, PENDLE tokens earned from seeding Pendle markets, or other positions. It is not the intent of the protocol to hold positions in *Other*.
### Non-Reserves Assets
This section describes how assets shown in the *apxUSD Supply* are categorized.
#### Circulating Supply
The total supply of apxUSD as reported by the `totalSupply()` function on the apxUSD contract deploy to Ethereum mainnet at [`0x98A878b1Cd98131B271883B390f68D2c90674665`](https://etherscan.io/token/0x98A878b1Cd98131B271883B390f68D2c90674665), less *Inventory* and *Protocol Owned Liquidity* (POL).
#### Inventory
Inventory is apxUSD, apyUSD, or assets that are redeemable for apxUSD/apyUSD that are held by the Apyx Foundation. Inventory is not part of the C*irculating Supply* and is not eligible for redemption.
Inventory enters circulation when a counterparty acquires it. For example, in an OTC deal, where a KYC'd counterparty transfers stablecoins or USD to the Foundation in exchange for apxUSD. When the counterparty transfers stablecoins or USD and receives apxUSD the reserves *Cash & Equivalents* increases, *Inventory* decreases, and *Circulating Supply increases.* The apxUSD is now backed and part of the circulating supply.
#### Protocol Owned Liquidity (POL)
Protocol Owned Liquidity is *Inventory* that is held in markets to provide liquidity. It is the same kind of asset as *Inventory*, but actively deployed into limit orders or liquidity positions. On the dashboard, *POL* and *Inventory* are reported as separate line items to provide more visibility into how the protocol manages *Inventory*.
\
\
# Third Party Attestation
### [Wolf & Company](https://www.wolfandco.com/)
#### June 2026
{% file src="/files/pEyjGe0aOkdBDcQwQ3QB" %}
#### May 2026
{% file src="/files/qbLmeTbarNfunx4RA5Tw" %}
#### April 2026
{% file src="/files/TwEKRgLw28PVIDvetRKc" %}
#### March 2026
{% file src="/files/LZ6VMZCnW5xyZoGpJR89" %}
# Overview
## Contract Addresses
| Contract | Address |
| ------------------------ | ------------------------------------------------------------------------------------------------------------------------- |
| apxUSD | [`0x98A878b1Cd98131B271883B390f68D2c90674665`](https://etherscan.io/address/0x98A878b1Cd98131B271883B390f68D2c90674665) |
| apyUSD | [`0x38EEb52F0771140d10c4E9A9a72349A329Fe8a6A`](https://etherscan.io/address/0x38EEb52F0771140d10c4E9A9a72349A329Fe8a6A)\` |
| UnlockToken | [`0x93775E2dFa4e716c361A1f53F212c7AE031BF4e6`](https://etherscan.io/address/0x93775E2dFa4e716c361A1f53F212c7AE031BF4e6)\` |
| ApyUSDRateView | [`0xCABa36EDE2C08e16F3602e8688a8bE94c1B4e484`](https://etherscan.io/address/0xCABa36EDE2C08e16F3602e8688a8bE94c1B4e484)\` |
| CommitToken: apxUSD | [`0x17122d869d981d184118B301313BCD157c79871e`](https://etherscan.io/address/0x17122d869d981d184118B301313BCD157c79871e)\` |
| Curve: apxUSD-USDC | [`0xE1B96555BbecA40E583BbB41a11C68Ca4706A414`](https://etherscan.io/address/0xE1B96555BbecA40E583BbB41a11C68Ca4706A414)\` |
| CommitToken: apxUSD-USDC | [`0xdfC3cF7E540628a52862907DC1AB935Cd5859375`](https://etherscan.io/address/0xdfC3cF7E540628a52862907DC1AB935Cd5859375)\` |
# Locking apxUSD for apyUSD
apxUSD holders can lock their tokens to receive apyUSD tokens, which accrue yield from the preferred share dividend payments distributed to the apyUSD vault. Locking is synchronous and immediate, providing instant access to yield.
apyUSD is an ERC-4626 compliant tokenized vault with synchronous deposits. Withdrawals are handled synchronously but return apxUSD\_unlock, which is non-transferrable and can be redeemed for apxUSD after a cooldown period. This makes unlocking effectively asynchronous.
### Understanding Lock Methods
The vault provides standard ERC-4626 methods for locking, offering flexibility in how users specify amounts:
**For Locking (Deposits - Synchronous):**
* **`deposit(assets, receiver)`**: Specify exact apxUSD amount to deposit, receive calculated apyUSD shares immediately
* Use when: You know exactly how much apxUSD you want to lock
* Example: "I want to lock 1000 apxUSD"
* **`mint(shares, receiver)`**: Specify exact apyUSD shares to receive, deposit calculated apxUSD amount immediately
* Use when: You know exactly how many apyUSD shares you want
* Example: "I want to mint 950 apyUSD shares"
{% hint style="info" %}
Prefer to use the `depositForMinShares` and `mintForMaxAssets` methods to limit price risk when locking apxUSD.
{% endhint %}
### Price Controls on Locking
The apyUSD also exposes deposit and mint methods with price controls to limit price risk between submitting a transaction and the transaction being included in a block:
* **`depositForMinShares(uint256 assets, uint256 minShares, address receiver)`**: Deposits exact assets for shares or reverts if less than min shares will be minted
* **`mintForMaxAssets(uint256 shares, uint256 maxAssets, address receiver)`**: Mint exact shares for assets or reverts if more than max assets will be deposited
### Total Assets and Vested Yield
The apyUSD vault's `totalAssets()` function includes both:
* The vault's apxUSD balance (assets held directly in the vault)
* The `vestedAmount()` available in the LinearVestV0 contract
This means that the exchange rate calculation for deposits accounts for vested yield that hasn't yet been transferred to the vault. Yield from minting operations is deposited into the YieldDistributor and then into the LinearVestV0 contract, where it vests linearly over a time. The apyUSD vault considers this vested yield as part of its total assets, ensuring that users receive shares that reflect the full value of the vault, including yield that is vesting.
When a withdrawal is requested, the vault automatically pulls all vested yield from the LinearVestV0 contract before processing the withdrawal, ensuring it has sufficient assets to fund the withdrawal.
#### Deposit Examples
1. Alice calls `apyUSD.deposit(1000e18, alice)`
2. apyUSD calculates shares based on `totalAssets()` which includes vested yield
3. apyUSD determine the exchange rate between assets and shares
4. apxUSD is transferred from Alice to apyUSD vault
5. apyUSD shares are minted to Alice immediately (no cooldown)
### Protections & Controls
The following controls protect the locking system:
#### Pause Controls:
* **Global Pause**: The apyUSD vault can be paused, preventing all token transfers including deposits and mints
* **Purpose**: Emergency stop mechanism to halt all vault operations in case of security issues or critical bugs
#### Deny List Controls:
* **Address Blocking**: AddressList contract checks addresses at execution time
* **Blocks**: Deposits and mints
* **No Cancellation**: Denylisted addresses are rejected immediately (revert), not cancelled after the fact
Protections are implemented in the apyUSD vault contract and the AddressList deny list contract:
Methods have been omitted for brevity, but apxUSD will implement the full [ERC-20](https://ethereum.org/developers/docs/standards/tokens/erc-20/) interface. The apyUSD contract will be upgradeable using the UUPS pattern, allowing for future improvements while maintaining security through AccessManager-based governance.
### Success & Failure Flows
#### Deposit Success
Users specify the exact amount of apxUSD to deposit and receive calculated apyUSD shares immediately.
```mermaid
sequenceDiagram
actor alice as Alice
participant offchain as Off Chain
box On-chain
participant vault as apyUSD Vault
participant apxUSD
end
alice ->> vault: deposit(1000 apxUSD, alice)
activate vault
vault ->> vault: previewDeposit(1000 apxUSD) -> 970 apyUSD
vault ->> apxUSD: transferFrom(alice, vault, 1000)
vault ->> vault: mint 970 apyUSD to alice
vault -->> offchain: emits Deposit(alice, alice, alice, 1000, 970)
vault -->> alice: returns 970 apyUSD received
deactivate vault
note right of alice: Deposit complete immediately. No delay for locking.
```
#### Mint Success
Users specify the exact amount of apyUSD shares to receive and deposit the calculated apxUSD amount immediately.
```mermaid
sequenceDiagram
actor alice as Alice
participant vault as apyUSD Vault
participant apxUSD
participant offchain as Off Chain
box On-chain
participant vault
participant apxUSD
end
alice ->> vault: mint(970 apyUSD, alice)
activate vault
vault ->> vault: previewMint(970 apyUSD) = 1000 apxUSD
vault ->> apxUSD: transferFrom(alice, vault, 1000)
vault ->> vault: mint 970 apyUSD to alice
vault -->> offchain: emits Deposit(alice, alice, alice, 1000, 970)
vault -->> alice: returns 1000 apxUSD spent
deactivate vault
note right of alice: Mint complete immediately. No delay for locking.
```
#### Deposit Failure - Slippage Exceeded
When the slippage is exceeded on deposit or mint.
```mermaid
sequenceDiagram
actor alice as Alice
box On-chain
participant vault as apyUSD Vault
end
alice ->> vault: depositForMinShares(1000 apxUSD, alice, minSharesOut: 980 apyUSD)
activate vault
vault ->> vault: previewDeposit(1000 apxUSD) = 970 apyUSD
vault ->> vault: check slippage: 970 < 980 apyUSD
vault ->> alice: revert SlippageExceeded(980, 970)
deactivate vault
note right of alice: Transaction fails. Alice can adjust slippage and retry
```
#### Deposit Failure - Deny Listed
When the caller or receiver is on the deny list, the deposit operation reverts immediately.
```mermaid
sequenceDiagram
actor alice as Alice
box On-chain
participant vault as apyUSD Vault
participant denylist as AddressList (Deny List)
end
alice ->> vault: deposit(1000 apxUSD, bob)
activate vault
vault ->> denylist: contains(alice) → false
vault ->> denylist: contains(bob) → true
vault ->> alice: revert Denied(bob)
deactivate vault
note right of alice: Transaction fails. Alice is on the deny list.
```
# Unlocking apyUSD for apxUSD
apyUSD holders can unlock their tokens to receive apxUSD assets. apyUSD is a synchronous ERC-4626 vault — withdrawals and redeems execute immediately and return **apxUSD\_unlock** tokens. apxUSD\_unlock is redeemable 1:1 for apxUSD after a 20 day cooldown period but does not earn yield and is non-transferrable.
### Flexible Unlocks
apyUSD unlocks support a more flexible redemption mechanism designed to improve liquidity and user optionality. When initiating a new unlock, users receive an onchain Unlock Receipt NFT representing their pending claim. Unlocks become claimable after 3 days, with an early unlock fee that declines linearly over time from 3.5% down to just 0.1%.
This mechanism allows users to:
* Exit faster when liquidity is needed
* Queue multiple unlock requests simultaneously
* Reduce fees by waiting longer before claiming
Looking ahead, unlock windows are expected to compress further as underlying digital credit instruments transition toward more frequent distributions.
{% hint style="warning" %}
You cannot cancel unlocking once it has been initiated and will only be able to convert apxUSD\_unlock to apxUSD after the cooldown period.
{% endhint %}
### Understanding Unlock Methods
The vault provides standard ERC-4626 methods for unlocking, offering flexibility in how users specify amounts:
**For Unlocking (Synchronous — returns apxUSD\_unlock):**
* **`withdraw(assets, receiver, owner)`**: Specify the exact apxUSD amount to receive after cooldown; burn calculated apyUSD shares immediately
* Use when: You know exactly how much apxUSD you want to unlock
* Example: "I want to unlock 1000 apxUSD"
* **`redeem(shares, receiver, owner)`**: Specify the exact apyUSD shares to burn; receive calculated apxUSD\_unlock immediately
* Use when: You know exactly how many apyUSD shares you want to exit
* Example: "I want to redeem all 950 of my apyUSD shares"
After receiving apxUSD\_unlock tokens, call `UnlockToken.redeem()` once the cooldown period has elapsed to receive apxUSD.
{% hint style="info" %}
Prefer to use the `withdrawForMaxShares` and `redeemForMinAssets` methods to limit price risk when unlocking apyUSD.
{% endhint %}
{% hint style="warning" %}
Multiple unlocks reset the cooldown period. For example, if you unlock 100 apxUSD you will receive apxUSD\_unlock that is convertable to apxUSD after the cooldown period. If you later unlock another 50 apxUSD the cooldown period will reset and you will have to wait the full period to completely unlock the 150 apxUSD.
{% endhint %}
### Price Controls on Unlocking
The apyUSD vault exposes withdraw and redeem methods with price controls to limit price risk between submitting a transaction and the transaction being included in a block:
* **`withdrawForMaxShares(uint256 assets, uint256 maxShares, address receiver)`**: Withdraws exact assets or reverts if more than max shares will be burned
* **`redeemForMinAssets(uint256 shares, uint256 minAssets, address receiver)`**: Redeems exact shares or reverts if less than min assets will be received
### Total Assets and Vested Yield
The apyUSD vault's `totalAssets()` function includes both:
* The vault's apxUSD balance (assets held directly in the vault)
* The `vestedAmount()` available in the LinearVestV0 contract
When a withdrawal is requested, the vault automatically pulls all vested yield from the vesting contract before processing the withdrawal, ensuring the exchange rate reflects the full accrued value and the vault has sufficient assets to fund the withdrawal.
#### Unlock Examples
1. Bob calls `apyUSD.withdraw(1000e18, bob, bob)`
2. apyUSD calculates shares based on `totalAssets()` which includes vested yield
3. apyUSD determines the exchange rate between assets and shares
4. Bob's apyUSD shares are burned immediately
5. 1000 apxUSD is deposited into the UnlockToken contract; Bob receives 1000 apxUSD\_unlock
6. After the cooldown period, Bob calls `UnlockToken.redeem(1000e18, bob, bob)` to receive 1000 apxUSD
### The UnlockToken: Tokenized Escrow During Cooldown
During the cooldown period, unlocked apxUSD assets are held in the **UnlockToken** contract.
**How it works:**
* User calls `apyUSD.withdraw()` or `apyUSD.redeem()` — apyUSD shares are burned synchronously
* The apxUSD assets are deposited into the UnlockToken contract by the vault
* The user immediately receives apxUSD\_unlock tokens (UnlockToken shares), redeemable 1:1 for apxUSD after the cooldown period
* The apyUSD vault is configured as the operator for UnlockToken, allowing it to initiate the redeem request on behalf of the user immediately
* After the cooldown period, the user calls `UnlockToken.redeem()` to receive their apxUSD
{% hint style="info" %}
There is only one instance of UnlockToken and it is used exclusively by the apyUSD vault.
{% endhint %}
### Success & Failure Flows
#### Withdraw Success
Users specify the exact amount of apxUSD to receive after the cooldown period. apyUSD shares are burned immediately and apxUSD\_unlock tokens are returned.
```mermaid
sequenceDiagram
actor bob as Bob
participant vault as apyUSD Vault
participant unlockToken as UnlockToken
participant apxUSD
bob ->> vault: withdraw(1000 apxUSD, bob, bob)
activate vault
vault ->> vault: previewWithdraw(1000 apxUSD) → 970 apyUSD shares
vault ->> vault: pull vested yield from LinearVestV0
vault ->> vault: burn 970 apyUSD from bob
vault ->> unlockToken: deposit(1000 apxUSD, bob)
activate unlockToken
unlockToken -->> bob: mint 1000 apxUSD_unlock
deactivate unlockToken
vault ->> unlockToken: requestRedeem(1000, bob, bob)
vault -->> bob: returns 970 apyUSD burned
deactivate vault
note right of bob: Cooldown period begins
bob ->> unlockToken: redeem(1000 apxUSD_unlock, bob, bob)
activate unlockToken
unlockToken ->> apxUSD: transfer(bob, 1000)
unlockToken -->> bob: 1000 apxUSD received
deactivate unlockToken
```
#### Redeem Success
Users specify the exact amount of apyUSD shares to burn. The calculated apxUSD amount is deposited into UnlockToken and redeemable after the cooldown period.
```mermaid
sequenceDiagram
actor bob as Bob
participant vault as apyUSD Vault
participant unlockToken as UnlockToken
participant apxUSD
bob ->> vault: redeem(970 apyUSD, bob, bob)
activate vault
vault ->> vault: previewRedeem(970 apyUSD) → 1000 apxUSD
vault ->> vault: pull vested yield from LinearVestV0
vault ->> vault: burn 970 apyUSD from bob
vault ->> unlockToken: deposit(1000 apxUSD, bob)
activate unlockToken
unlockToken -->> bob: mint 1000 apxUSD_unlock
deactivate unlockToken
vault ->> unlockToken: requestRedeem(1000, bob, bob)
vault -->> bob: returns 1000 apxUSD queued
deactivate vault
note right of bob: Cooldown period begins
bob ->> unlockToken: redeem(1000 apxUSD_unlock, bob, bob)
activate unlockToken
unlockToken ->> apxUSD: transfer(bob, 1000)
unlockToken -->> bob: 1000 apxUSD received
deactivate unlockToken
```
#### Withdrawal Failure — Slippage Exceeded
When the slippage is exceeded on withdraw or redeem.
```mermaid
sequenceDiagram
actor bob as Bob
box On-chain
participant vault as apyUSD Vault
end
bob ->> vault: withdrawForMaxShares(1000 apxUSD, bob, maxSharesIn: 950 apyUSD)
activate vault
vault ->> vault: previewWithdraw(1000 apxUSD) = 970 apyUSD shares
vault ->> vault: check slippage: 970 > 950 apyUSD
vault ->> bob: revert SlippageExceeded(950, 970)
deactivate vault
note right of bob: Transaction fails. Bob can adjust slippage and retry
```
# Glossary
Find the definition below
{% hint style="info" %}
This glossary may be updated and expanded on an ongoing basis.
{% endhint %}
#### Assets
**apxUSD**
A semi-stable token backed by a basket of dividend yielding preferred shares and US treasury bonds held offchain and other stablecoins held onchain.
**apyUSD**
An ERC-4626 compliant tokenized vault that locks apxUSD and earns yield on the underlying assets.
**APYX**
A future governance token that will be used to vote on parameters on the Apyx Protocol.
**Redemption Value**
The price at which all minting and redemption of apxUSD occurs, with a small spread for liquidity. Tracks the underlying basket of preferred shares and cash, dampened by the cash portion of the reserve.
**Total Collateral Value**
The full value of the reserve backing apxUSD, including the overcollateralization buffer. Replaces "NAV" on the transparency dashboard.
**Overcollateralization Buffer**
The gap between Total Collateral Value and Redemption Value. Held in preferred equity, not consumed during routine redemptions, and distributed pro-rata to holders in catastrophic wind-down scenarios.
**RFQ Redemption**
A Request for Quote redemption system that connects redemption requests with approved counterparties for competitive execution against the reserve, supplementing the automated primary-market redemption at Redemption Value.
#### Contracts & Components
**CommitToken**
An asynchronous tokenized vault used for locking tokens in exchange for points. The CommitToken extends ERC-4626 with ERC-7540 inspired asynchronous redemption functionality, enforcing a delayed unlocking period.
For example, users could deposit apxUSD into an apxUSD/USDC Curve pool, then deposit their Curve pool LP token into a CommitToken contract to lock their LP position and increase their points yield.
Commit tokens are always redeemable 1-1 for their underlying asset after the commit period.
**UnlockToken**
A special instance of the CommitToken contract that allows the apyUSD vault to initiate redemption requests on behalf of users. It acts as an operator for any user, enabling it to initiate redemption requests automatically when a user unlocks their apyUSD. The apyUSD contract uses the UnlockToken to enforce an unlocking delay by depositing the users apxUSD into the UnlockToken contract when the user redeems apyUSD for apxUSD. The user receives apxUSD\_unlock that is redeemable 1-1 for apxUSD after the unlocking period.
There is only one instance of an UnlockToken and it is used by the apyUSD contract.
**LinearVestV0**
A contract that receives yield deposits and vests them linearly over a configurable period. Only the vault contract can transfer (pull) vested yield. The apyUSD vault pulls yield on withdrawal.
**YieldDistributor**
A contract that receives yield from MinterV0 minting operations and deposits it to the Vesting contract. Acts as an intermediary between MinterV0 and LinearVestV0 to decouple minting and vesting, and allows for an operator role to trigger yield to be deposited into the LinearVestV0 contract.
**MinterV0**
V0 of the minting contract used to enforce minting controls, like max mint size, max mint per period, etc.
#### Standards
* **ERC-7540:** Ethereum standard for asynchronous tokenized vaults, extending ERC-4626 with request/claim flows for operations requiring delays or offchain processing.
# Audits
# Terms of Service
These Terms of Use (the “Terms”) govern your use of the website located at (the “Site”). The Site facilitates access to and interaction with a decentralized financial protocol known as the APYX Protocol (the “Protocol”), further described at (the “Documentation”), as made available by Preference Capital (BVI) Ltd. and its affiliates (collectively, the “Company”, “we”, “our” and “us”). To the extent that the Documentation conflicts with these Terms, these Terms shall supersede and govern your use of the Site and Protocol.
NOTICE ON PROHIBITED USE – RESTRICTED PERSONS: THE SITE AND ANY RELATED SERVICES ARE NOT OFFERED TO AND MAY NOT BE USED BY:
PERSONS OR ENTITIES WHO RESIDE IN, ARE CITIZENS OF, ARE LOCATED IN, ARE INCORPORATED IN, OR HAVE A REGISTERED OFFICE IN ANY RESTRICTED TERRITORY, AS DEFINED BELOW (EACH SUCH PERSON OR ENTITY FROM A RESTRICTED TERRITORY, A “RESTRICTED PERSON”).
WE DO NOT MAKE EXCEPTIONS. THEREFORE, IF YOU ARE A RESTRICTED PERSON, THEN DO NOT ATTEMPT TO USE THE SITE OR ANY RELATED SERVICES. USE OF A VIRTUAL PRIVATE NETWORK (“VPN”) OR ANY OTHER SIMILAR MEANS INTENDED TO CIRCUMVENT THE RESTRICTIONS SET FORTH HEREIN IS PROHIBITED.
You may use the Site and Protocol only if you are at least 18 years of age (or such other minimum age at which you can provide consent to data processing under the laws of your territory), and not otherwise barred from using the Site or Protocol under applicable law. In order to protect the integrity of the Site or Protocol, we reserve the right, at any time, in our sole discretion, to block access to the Site from certain IP addresses and unique device identifiers. For the purposes of these Terms, “Restricted Territory” means the United States, countries in the European Union, United Kingdom, Canada, Cuba, Iran, North Korea, Syria, and the Crimea, Donetsk People’s Republic and Luhansk People’s Republic regions of Ukraine or any other country to which the United States embargoes goods or imposes similar sanctions.
**WHEN YOU AGREE TO THESE TERMS, YOU ARE AGREEING (WITH LIMITED EXCEPTION) TO RESOLVE ANY DISPUTE BETWEEN YOU AND THE COMPANY THROUGH BINDING, INDIVIDUAL ARBITRATION RATHER THAN IN COURT. PLEASE REVIEW CAREFULLY SECTION 12 “DISPUTE RESOLUTION” BELOW FOR DETAILS REGARDING ARBITRATION. HOWEVER, IF YOU ARE A RESIDENT OF A JURISDICTION WHERE APPLICABLE LAW PROHIBITS ARBITRATION OF DISPUTES, THE AGREEMENT TO ARBITRATE IN SECTION 12 WILL NOT APPLY TO YOU BUT THE PROVISIONS OF SECTION 11 “GOVERNING LAW AND FORUM CHOICE” WILL APPLY INSTEAD.**
1. **Interaction with the Site and Protocol.**
1. Certain aspects of the Site facilitate interaction with the Protocol to help enable secure communication and interoperability between different decentralized blockchain networks and protocols which may be supported by the Site. YOUR USE OF THE SITE AND PROTOCOL ARE ENTIRELY AT YOUR OWN RISK.
2. You may engage with the Site by linking your supported digital wallet(s) via the functionality of the Site. Before engaging in any transactions, we may ask you to use a supported electronic wallet extension and connect and unlock your digital wallets with that extension. Once you submit a message to engage in a transaction, your message is passed on to the applicable extension, which completes the transaction on your behalf.
3. THE SITE IS ONLY AN INTERFACE WITH THE PROTOCOL, BLOCKCHAIN AND SMART CONTRACTS. WE ARE NOT A MARKETPLACE FACILITATOR, BROKER, FINANCIAL INSTITUTION OR CREDITOR. You acknowledge and agree that the Site is an online interface provider. We do not buy or sell on behalf of any user of the Site. We will have no liability to you or to any third party for any claims or damages that may arise as a result of any transactions that you engage in via the Site or Protocol.
4. The Protocol allows users to purchase and redeem digital tokens generated by the Protocol such as apxUSD or apyUSD (each, a “Protocol-Generated Asset”) with certain accepted digital assets such as USDC, USDT and apxUSD. Protocol-Generated Assets represent programmatic claims against the respective Protocol modules holding certain assets (such assets, “Protocol Assets”), and does not represent a claim against any particular entity or person.
5. THE SITE AND THE PROTOCOL ARE PROVIDED "AS IS", AT YOUR OWN RISK, AND WITHOUT WARRANTIES OF ANY KIND. WITHOUT LIMITING THE FOREGOING, WE EXPLICITLY DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, QUIET ENJOYMENT AND NON-INFRINGEMENT, AND ANY WARRANTIES ARISING OUT OF COURSE OF DEALING OR USAGE OF TRADE. WE MAKE NO WARRANTY THAT THE SITE OR PROTOCOL WILL MEET YOUR REQUIREMENTS OR BE AVAILABLE ON AN UNINTERRUPTED, SECURE, OR ERROR-FREE BASIS. WE MAKE NO WARRANTY REGARDING THE QUALITY, ACCURACY, TIMELINESS, TRUTHFULNESS, COMPLETENESS OR RELIABILITY OF ANY INFORMATION OR CONTENT ON THE SITE.
6. By using or accessing this Site or the Protocol and related smart contracts, you understand and expressly agree to these Terms, and you agree that no developer or entity, including but not limited to the Company, its affiliates, agents and service providers (the “Company Parties”) involved in creating, deploying or maintaining this Site or the Protocol will be liable for any claims or damages whatsoever associated with your use, inability to use, or your interaction with other users of, this Site or the Protocol, including any direct, indirect, incidental, special, exemplary, punitive or consequential damages, or loss of profits, digital assets, tokens, or anything else of value, including but not limited to the Protocol-Generated Assets and the Protocol Assets.
7. THE COMPANY PARTIES WILL NOT BE RESPONSIBLE OR LIABLE TO YOU FOR ANY LOSS AND TAKES NO RESPONSIBILITY FOR, AND WILL NOT BE LIABLE TO YOU FOR, ANY USE OF THE SITE OR PROTOCOL, INCLUDING BUT NOT LIMITED TO ANY LOSSES, DAMAGES OR CLAIMS ARISING FROM: (I) USER ERROR SUCH AS FORGOTTEN PASSWORDS, INCORRECTLY CONSTRUCTED TRANSACTIONS, OR MISTYPED WALLET ADDRESSES; (II) SERVER FAILURE OR DATA LOSS; (III) CRYPTOCURRENCY WALLETS OR CORRUPT FILES; (IV) UNAUTHORIZED ACCESS TO THE SITE; OR (V) ANY THIRD PARTY ACTIVITIES, INCLUDING WITHOUT LIMITATION THE USE OF VIRUSES, PHISHING, BRUTEFORCING OR OTHER MEANS OF ATTACK AGAINST ANY BLOCKCHAIN NETWORK UNDERLYING THE SITE OR PROTOCOL.
2. Changes to these Terms or the Site. We may update the Terms from time to time in our sole discretion. If we do, we’ll let you know by posting the updated Terms on the Site and/or may also send other communications. It’s important that you review the Terms whenever we update them or you use the Site. If you continue to use the Site after we have posted updated Terms, it means that you accept and agree to the changes. If you don’t agree to be bound by the changes, you may not use the Site anymore. Because our Site is evolving over time we may change or discontinue all or any part of the Site, at any time and without notice, at our sole discretion.
3. Regulatory and Compliance Suspensions or Terminations. We may suspend or terminate your access to the Site at any time in connection with any transaction, or refuse to execute purchase or redemption orders, as required by applicable law or any governmental authority, or if we in our sole and reasonable discretion determine you are violating these Terms or the terms of any third-party service provider. Such suspension or termination shall not be constituted a breach of these Terms by the Company. In accordance with anti-money laundering, anti-terrorism, anti-fraud, and other compliance policies and practices, we may impose reasonable limitations and controls on the ability of you or any beneficiary to utilize the Site. You are solely responsible for any losses resulting from such suspensions, terminations or limitations. For the avoidance of doubt, we do not have and will not exercise discretion over digital assets held in your wallet and do not undertake to review the accuracy or feasibility of any transactions.
4. General Prohibitions and the Company’s Enforcement Rights. You agree not to do any of the following:
1. Use, display, mirror or frame the Site or any individual element within the Site, the Company’s name, any Company trademark, logo or other proprietary information, or the layout and design of any page or form contained on a page, without the Company’s express written consent;
2. Access, tamper with, or use non-public areas of the Site, the Company’s computer systems, or the technical delivery systems of the Company’s providers;
3. Attempt to probe, scan or test the vulnerability of any Company system or network or breach any security or authentication measures;
4. Avoid, bypass, remove, deactivate, impair, descramble or otherwise circumvent any technological measure implemented by the Company or any of the Company’s providers or any other third party (including another user) to protect the Site;
5. Send any unsolicited or unauthorized advertising, promotional materials, email, junk mail, spam, chain letters or other form of solicitation;
6. Use any meta tags or other hidden text or metadata utilizing the Company’s trademark, logo URL or product name without the Company’s express written consent;
7. Use the Site, or any portion thereof, for any commercial purpose or for the benefit of any third party or in any manner not permitted by these Terms;
8. Forge any TCP/IP packet header or any part of the header information in any email or newsgroup posting, or in any way use the Site to send altered, deceptive or false source-identifying information;
9. Attempt to decipher, decompile, disassemble or reverse engineer any of the software used to provide the Site;
10. Interfere with, or attempt to interfere with, the access of any user, host or network, including, without limitation, sending a virus, overloading, flooding, spamming, or mail-bombing the Site;
11. Collect or store any personally identifiable information from the Site from other Users of the Site without their express permission;
12. Impersonate or misrepresent your affiliation with any person or entity;
13. Violate any applicable law, rule, or regulation concerning the integrity of trading markets, including (but not limited to) the manipulative tactics commonly known as spoofing and wash trading;
14. Violate any applicable law or regulation; or
15. Encourage or enable any other individual to do any of the foregoing.
5. No Fiduciary Duties. The Site and Protocol are not intended to, and do not, create or impose any fiduciary duties on the Company Parties. To the fullest extent permitted by law, any user of the Site or Protocol acknowledges and agrees that the Company Parties owe no fiduciary duties to it or any other party, and that to the extent any such duties or liabilities may exist at law or in equity, those duties and liabilities are hereby irrevocably disclaimed, waived, and eliminated. Any user of the Site or Protocol further agrees that the only duties and obligations that the Company or Company Parties, as applicable, may owe are those set out expressly herein.
6. Links to Third Party Websites or Resources. The Site may allow you to access third-party websites or other resources. We provide access only as a convenience and are not responsible for the content, products or services on or available from those resources or links displayed on such websites. You acknowledge sole responsibility for and assume all risk arising from, your use of any third-party resources.
7. Points.
1. General. In connection with your historic or current use of the Protocol or the Site, we may provide you certain points for completing certain activities, such as completing certain transactions
2. No Monetary Value. In your use of the Site, you may accumulate “Points”. Points are virtual items with no monetary value, and do not constitute any currency or property of any type and are not redeemable, refundable, or eligible for any fiat or virtual currency or anything else of monetary value, under any circumstances. Points are not transferable between users outside of the Site, and you may not attempt to sell, trade, or transfer any Points outside of the Site, or obtain any manner of credit using any Points. Any attempt to sell, trade, or transfer any Points outside of the Site will be null and void.
3. Modification. We may decide to modify, delete, remove, or wipe the Site, in our sole discretion, at any time without notice, including, without limitation, the modification of the presence, amounts, or any other conditions applicable to the Points, without any liability to you or other Site users. We do not guarantee that Points will continue to be offered for any particular length of time and you may not rely upon the continued availability of any Points. At the expiration of the Site, you acknowledge and agree that your access to and use of your Points may be removed, and all accrued Points may be deleted from the Site.
8. Termination. We may suspend or terminate your access to and use of the Site, at our sole discretion, at any time and without notice to you. Upon any termination, discontinuation or cancellation of the Site or your access to and use of the Site, the following Sections will survive: 1 and 4-13.
9. Indemnity. You will indemnify and hold the Company Parties harmless from and against any claims, disputes, demands, liabilities, damages, losses, and costs and expenses, including, without limitation, reasonable legal and accounting fees arising out of or in any way connected with (a) your access to or use of the Site or Protocol or (b) your violation of these Terms.
10. Limitation of Liability.
1. TO THE MAXIMUM EXTENT PERMITTED BY LAW, NONE OF THE COMPANY PARTIES INVOLVED IN CREATING, PRODUCING, OR DELIVERING THE SITE OR PROTOCOL WILL BE LIABLE FOR ANY INCIDENTAL, SPECIAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES, OR DAMAGES FOR LOST PROFITS, LOST REVENUES, LOST SAVINGS, LOST BUSINESS OPPORTUNITY, LOSS OF DATA OR GOODWILL, SERVICE INTERRUPTION, COMPUTER DAMAGE OR SYSTEM FAILURE OR THE COST OF SUBSTITUTE SERVICES OF ANY KIND ARISING OUT OF OR IN CONNECTION WITH THESE TERMS OR FROM THE USE OF OR INABILITY TO USE THE SITE OR PROTOCOL, WHETHER BASED ON WARRANTY, CONTRACT, TORT (INCLUDING NEGLIGENCE), PRODUCT LIABILITY OR ANY OTHER LEGAL THEORY, AND WHETHER OR NOT ANY COMPANY PARTY HAS BEEN INFORMED OF THE POSSIBILITY OF SUCH DAMAGE, EVEN IF A LIMITED REMEDY SET FORTH HEREIN IS FOUND TO HAVE FAILED OF ITS ESSENTIAL PURPOSE.
2. TO THE MAXIMUM EXTENT PERMITTED BY THE LAW OF THE APPLICABLE JURISDICTION, IN NO EVENT WILL ANY OF THE COMPANY PARTIES’ TOTAL LIABILITY ARISING OUT OF OR IN CONNECTION WITH THESE TERMS OR FROM THE USE OF OR INABILITY TO USE THE SERVICES EXCEED ONE HUNDRED DOLLARS ($100).
3. THE EXCLUSIONS AND LIMITATIONS OF DAMAGES SET FORTH ABOVE ARE FUNDAMENTAL ELEMENTS OF THE BASIS OF THE BARGAIN BETWEEN THE COMPAY AND YOU.
11. Governing Law and Forum Choice. These Terms and any action related thereto will be governed by the laws of the British Virgin Islands, without regard to its conflict of laws provisions. Except as otherwise expressly set forth in Section 12 “Dispute Resolution,” the exclusive jurisdiction for all Disputes (defined below) that you and the Company are not required to arbitrate will be the courts located in the British Virgin Islands, and you and the Company each waive any objection to jurisdiction and venue in such courts.
12. Dispute Resolution.
1. Mandatory Arbitration of Disputes. You and the Company each agree that any dispute, claim or controversy arising out of or relating to these Terms or the breach, termination, enforcement, interpretation or validity thereof or the use of the Site or Protocol (collectively, “Disputes”) will be resolved solely by binding, individual arbitration and not in a class, representative or consolidated action or proceeding. Such arbitration will be seated in the British Virgin Islands. You and the Company agree that you and the Company are each waiving the right to a trial by jury or to participate in a class action. This arbitration provision shall survive termination of these Terms.
2. Exceptions. As limited exceptions to Section 12(a) above, we each retain the right to seek injunctive or other equitable relief from a court to prevent (or enjoin) the infringement or misappropriation of our intellectual property rights or to protect our rights by injunction on an interim basis pending or during the arbitration and/or following an award but prior to payment.
3. Conducting Arbitration and Arbitration Rules. The arbitration will be conducted by JAMS under its JAMS Comprehensive Arbitration Rules and Procedures (the “JAMS Rules”) then in effect, except as modified by these Terms. The JAMS Rules are available at . A party who wishes to start arbitration must submit a written Demand for Arbitration to JAMS and give notice to the other party as specified in the JAMS Rules. JAMS provides a form Demand for Arbitration at .
1. Any arbitration hearings will take place in the county (or parish) where you live, unless we both agree to a different location, but will be conducted remotely to the extent permitted by the JAMS Rules. The parties agree that the arbitrator shall have exclusive authority to decide all issues relating to the interpretation, applicability, enforceability and scope of this arbitration agreement.
4. Arbitration Costs. Payment of all filing, administration and arbitrator fees will be governed by the JAMS Rules, and we won’t seek to recover the administration and arbitrator fees we are responsible for paying, unless the arbitrator finds your Dispute frivolous. If we prevail in arbitration we’ll pay all of our attorneys’ fees and costs and won’t seek to recover them from you. If you prevail in arbitration you will be entitled to an award of attorneys’ fees and expenses to the extent provided under applicable law.
5. Injunctive and Declaratory Relief. Except as provided in Section 12(b) above, the arbitrator shall determine all issues of liability on the merits of any claim asserted by either party and may award declaratory or injunctive relief only in favor of the individual party seeking relief and only to the extent necessary to provide relief warranted by that party’s individual claim. To the extent that you or we prevail on a claim and seek public injunctive relief (that is, injunctive relief that has the primary purpose and effect of prohibiting unlawful acts that threaten future injury to the public), the entitlement to and extent of such relief must be litigated in a civil court of competent jurisdiction and not in arbitration. The parties agree that litigation of any issues of public injunctive relief shall be stayed pending the outcome of the merits of any individual claims in arbitration.
6. Class Action Waiver. YOU AND THE COMPANY AGREE THAT EACH MAY BRING CLAIMS AGAINST THE OTHER ONLY IN YOUR OR ITS INDIVIDUAL CAPACITY, AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE PROCEEDING. Further, if the parties’ Dispute is resolved through arbitration, the arbitrator may not consolidate another person’s claims with your claims, and may not otherwise preside over any form of a representative or class proceeding. If this specific provision is found to be unenforceable, then the entirety of this Dispute Resolution section shall be null and void.
7. Severability. With the exception of any of the provisions in Section 12(f) of these Terms (“Class Action Waiver”), if an arbitrator or court of competent jurisdiction decides that any part of these Terms is invalid or unenforceable, the other parts of these Terms will still apply.
13. General Terms.
1. Reservation of Rights. The Company and its licensors exclusively own all right, title and interest in and to the Site, including all associated intellectual property rights. You acknowledge that the Site are protected by copyright, trademark, and other laws of the British Virgin Islands and other countries. You agree not to remove, alter or obscure any copyright, trademark, service mark or other proprietary rights notices incorporated in or accompanying the Site.
2. Entire Agreement. These Terms constitute the entire and exclusive understanding and agreement between the Company and you regarding the Site or Protocol, and these Terms supersede and replace all prior oral or written understandings or agreements between the Company and you regarding the Site or Protocol. If any provision of these Terms is held invalid or unenforceable by an arbitrator or a court of competent jurisdiction, that provision will be enforced to the maximum extent permissible and the other provisions of these Terms will remain in full force and effect. You may not assign or transfer these Terms, by operation of law or otherwise, without the Company’s prior written consent. Any attempt by you to assign or transfer these Terms, without such consent, will be null. The Company may freely assign or transfer these Terms without restriction. Subject to the foregoing, these Terms will bind and inure to the benefit of the parties, their successors and permitted assigns.
3. Notices. Any notices or other communications provided by the Company under these Terms will be given: (i) via email; or (ii) by posting to the Site. For notices made by email, the date of receipt will be deemed the date on which such notice is transmitted.
4. Waiver of Rights. The Company’s failure to enforce any right or provision of these Terms will not be considered a waiver of such right or provision. The waiver of any such right or provision will be effective only if in writing and signed by a duly authorized representative of the Company. Except as expressly set forth in these Terms, the exercise by either party of any of its remedies under these Terms will be without prejudice to its other remedies under these Terms or otherwise.
5. Contact Information. If you have any questions about these Terms or the Site, please contact us at .
14. Terminology.
1. When used within the Site or Documentation, the terms “deposit,” “withdraw,” “redeem,” “earn,” “swap,” “dividend,” “debt,” “lend,” “refinance, “collateral”, “credit,” “priority,” “reserves,” “leverage,” “bank,” “borrow,” “yield,” “invest” and/or other similar terms are not meant to be interpreted pursuant to the customary legal meaning of those terms or to those terms as defined in any body of commercial law. Rather, such terms are being used to draw rough analogies between the heavily automated and mostly deterministic operations of a decentralized smart contract system and the discretionary performance of traditional-finance transactions between individuals.
2. By accessing and using the Site or Protocol, you represent that you understand the inherent risks associated with using cryptographic and blockchain-based systems, and that you have a working knowledge of the usage and intricacies of digital assets such as bitcoin (BTC), ether (ETH), Solana (SOL) and other digital tokens such as those following the Ethereum Token Standard (ERC-20). You further understand that the markets for these digital assets are highly volatile due to factors including (but not limited to) adoption, speculation, technology, security, and regulation. You acknowledge that the cost and speed of transacting with cryptographic and blockchain-based systems are variable and may increase at any time. You further acknowledge the risk that your digital assets, including but not limited to the Protocol-Generated Assets, may lose some or all of their value. You further acknowledge that the Company Parties are not responsible for any of these variables or risks and cannot be held liable for any resulting losses that you experience while accessing Site or Protocol. Accordingly, you understand and agree to assume full responsibility for all of the risks of accessing and using and interacting with the Site or Protocol. Additional information is accessible via the Documentation.
# Referral Terms of Service
Last Updated: March 10, 2026
## 1. About
1.1 These APYX Referral Program Terms (the "Referral Terms") govern participation in the APYX referral program (the "Program") made available by Preference Capital (BVI) Ltd. (the "Company") via Company interfaces.
1.2 These Referral Terms are incorporated into, and form part of, the Company's Terms of Service at (the "ToS"). Capitalized terms not defined here have the meanings in the ToS.
1.3 If there is a conflict, these Referral Terms control only for Program mechanics, accrual, and payment.
1.4 Participation is optional. By generating, sharing, or using a referral link, or receiving Program value, a Participant (as defined below) agrees to these Referral Terms.
1.5 The Company may amend Program rules prospectively for future accrual periods, but may not retroactively cancel, reduce, or claw back already-earned amounts except for manifest calculation error, duplicate payment correction, fraud/material breach, or Applicable Law. Continued participation after an effective date constitutes acceptance of updated Referral Terms.
## 2. Definitions
2.0 Applicable Law: any legal, regulatory, sanctions, court-order, or governmental restriction that prohibits payment to a recipient.
2.1 Claimable Balance: Program amounts the Company has made available for a Participant to claim.
2.2 Claim Window: three (3) months from the date Claimable Balance reaches or exceeds the Minimum Claim Threshold, as further described in Section 8.
2.3 Commission Statement: any statement, report, dashboard entry, export, or other record the Company makes available showing accrued, claimable, claimed, paid, and/or expired Program amounts.
2.4 Eligible Balance: the portion of a Referee's balance commissionable under Program rules as determined by Company records.
2.5 L1/L2/L3: L1 is a direct Referrer of Referee; L2 is a Referrer of L1; L3 is a Referrer of L2.
2.6 Minimum Claim Threshold: USD $1,000 (apxUSD equivalent claimable value), unless updated prospectively under these Referral Terms.
2.7 Participant: a Referrer or Referee in the Program.
2.8 Pre-/Post-Threshold Portion: the balance portions treated under rates before/after Threshold Event.
2.9 Referee: the user attributed to a Referrer.
2.10 Referrer: the user eligible to receive Program commissions.
2.11 Threshold Event: the first occurrence when the total supply of apxUSD reaches or exceeds USD $100,000,000.
## 3. Eligibility and Enrollment
3.1 Participants must satisfy all ToS eligibility requirements, including jurisdictional restrictions and age or verification requirements. The Company reserves the right to require affirmative Program activation and acceptance of these Referral Terms prior to any reward accrual. This Program is void where prohibited by law. Participation in the Program does not create, and shall not be construed to create, any agency, employment, partnership, joint venture, or fiduciary relationship between the Participant and the Company.
3.2 The Company may conduct wallet/sanctions screening, transaction monitoring, risk scoring, and related compliance reviews, and may require KYC/KYB, source-of-funds/source-of-wealth, beneficial ownership, tax, or other compliance information as a condition to participation, claim release, or payment.
## 4. Referral Process
4.1 The Company generates unique referral links or identifiers for eligible Referrers through its designated service provider(s). Each Referrer may access and share their unique referral link via Company interfaces.
4.2 Attribution occurs when a prospective Referee connects their wallet to the Company via a valid referral link. Subject to the Company's anti-fraud and error-prevention controls, the first valid attribution for a Referee establishes the L1 relationship and is treated as immutable for that Referee.
4.3 The upline chain (L2 and L3) is determined at the time of initial attribution based on the L1 Referrer's own upline relationships. The maximum referral chain depth is three (3) levels (L1, L2, L3).
4.4 If an upline level (L2 or L3) does not exist for a given Referee at the time of attribution, no commission amount is allocated or accrued to that non-existent level. The Company does not redistribute unallocated amounts to other levels unless the Company expressly states otherwise in writing.
4.5 The Company may support manual attribution workflows in limited circumstances (e.g., to correct technical errors or address exceptional cases). Unless the Company expressly approves otherwise in writing, any manual attribution applies prospectively from the effective timestamp specified by the Company.
4.6 The Company's books, system records, and service provider data constitute the sole and official source of truth for all attribution, referral relationships, and commission calculations. Participants acknowledge and accept the Company's determination of all attribution matters, subject to the dispute resolution process in Section 12.
## 5. Commission Economics
5.1 The applicable annualized rates are as follows:
| Tier | Pre-Threshold | Post-Threshold |
| ---- | --------------- | -------------- |
| L1 | 1.00% (100 bps) | 0.25% (25 bps) |
| L2 | 0.04% (4 bps) | 0.04% (4 bps) |
| L3 | 0.01% (1 bp) | 0.01% (1 bp) |
5.2 All rates are annualized and accruals are prorated daily.
Accrued Amount = Eligible Balance × Applicable Annualized Rate × (Elapsed Time / Year)
## 6. Threshold Event; One-Way Ratchet
6.1 Upon occurrence of a Threshold Event, the Company shall record and preserve the state of all relevant metrics used to determine pre-threshold treatment.
6.2 Pre-Threshold portions shall continue to receive pre-threshold treatment in accordance with applicable Program terms.
6.3 Any deposits or balance portions that first qualify after a Threshold Event shall be classified as post-threshold.
6.4 The Threshold Event operates as a one-way ratchet: once triggered, post-threshold treatment shall apply to all post-threshold portions regardless of whether total supply of apxUSD subsequently falls below $100M.
## 7. Balance Tracking; Withdrawals; Ordering
7.1 Commissions accrue only on the current Eligible Balance. Withdrawals reduce the commissionable balance at the time the processing of such withdrawal is recorded. Where multiple rate portions exist, the Company applies Program ordering rules and may apply withdrawals first against higher-rate portions. Re-deposits are treated under the Program rules then in effect.
## 8. Claim Flow, Settlement, and Expiration
8.1 Program accruals are calculated off-chain and the Company may make amounts available as Claimable Balance, payable in apxUSD (unless the Company notifies otherwise) through a claim-based payout process (unless the Company expressly elects another method). To receive payment, a Participant must submit a valid claim through Company interfaces, satisfy applicable compliance checks, and have a Claimable Balance at or above the Minimum Claim Threshold.
8.2 Amounts below the Minimum Claim Threshold roll forward without time-based expiration; once the threshold is met or exceeded, the Claim Window begins (or restarts) for the then-current unclaimed balance. If eligible amounts are not validly claimed within the Claim Window, they expire and are permanently forfeited unless the Company elects otherwise in writing. The Company may prospectively update the Minimum Claim Threshold by notice via site posting, in-app notice, and/or updated Referral Terms before the effective date, and targets at least monthly settlement for valid claims (though more frequent settlements may occur).
8.3 Participants are responsible for providing correct wallet/payment details and fulfilling their own tax obligations.
## 9. Earned Amounts; Payment Obligation
9.1 Once Program amounts are earned under these Referral Terms and reflected in the Company's records, they are the Company's contractual payment obligations, subject to these Referral Terms, including claim, compliance, and expiration provisions.
9.2 Program suspension or termination does not extinguish the Company's obligation to pay previously earned and validly due amounts, subject to Section 10.
9.3 If payment timing is delayed by technical, operational, liquidity-management, or network constraints, the Company remains obligated to settle valid earned amounts when reasonably practicable, unless prohibited by Applicable Law.
## 10. Compliance and Payment Restrictions
10.1 The Company may withhold, condition, delay, suspend, or reject payment where required by law, sanctions regime, court order, competent authority instruction, or where the Company reasonably determines enhanced compliance review is appropriate (including AML/CFT, fraud, and market-abuse controls).
10.2 Failure to satisfy requested compliance requirements within Company-requested timelines may result in delay, suspension, rejection, hold, or forfeiture where permitted by law and these Referral Terms.
10.3 If an Applicable Law affects a Participant, the Company may hold amounts pending lawful resolution or apply other legally required treatment.
## 11. Program Changes; Suspension; Termination
11.1 The Company may update Program mechanics prospectively by posting updated Referral Terms with an effective date.
11.2 The Company will communicate Program changes at minimum via a dedicated Discord channel designated for Program updates. The Company may also communicate changes through site/in-app notices, updated Referral Terms pages, email, or other official channels.
11.3 The Company may suspend or terminate the Program for future accruals for legal, compliance, security, business, or technical reasons. The Company may also, in its sole discretion, immediately terminate or suspend any Participant's participation in the Program, without prior notice, if the Company suspects fraud, manipulation, abuse, or any other activity that the Company determines, in its reasonable judgment, to be inconsistent with the spirit or intent of the Program or these Referral Terms.
11.4 No change, suspension, or termination eliminates valid earned obligations accrued before effectiveness, subject to Section 10.
## 12. Disputes and Taxes
12.1 A Participant disputing a Commission Statement must notify the Company in writing within thirty (30) days of statement publication, providing reasonable detail regarding the basis for the dispute. If no dispute is submitted within that thirty (30) day period, the Commission Statement shall be deemed accepted, absent manifest error.
12.2 Participants are solely responsible for all tax determination, reporting, and filing obligations arising from Program participation and any payments received hereunder. The Company may provide records for the convenience of Participants but does not provide tax, legal, or financial advice.
## 13. Limitation; No Investment Advice
13.1 Program participation does not constitute investment, legal, or tax advice from the Company.
13.2 Except as expressly stated regarding validly earned amounts, the Company disclaims additional obligations.
## 14. General
14.1 Headings are for convenience only.
14.2 These Referral Terms and ToS form the complete agreement regarding Program participation.
# Privacy Policy
This Privacy Notice applies to the processing of personal information by Preference Capital (BVI) Ltd. (“Company,” “we,” “us,” or “our”) including on our website available at and our other online or offline offerings that link to, or are otherwise subject to, this Privacy Notice (collectively, the “Services”).
By using the Services, you agree to the collection, use and sharing of your personal information as described in this Privacy Notice. If you do not agree to this Privacy Notice, please do not use or access the Services. If you provide personal information on behalf of individuals, this will be relevant to those individuals. Please refer them to this Privacy Notice or otherwise advise them of its content.
1\. UPDATES TO THIS PRIVACY NOTICE
2\. PERSONAL INFORMATION WE COLLECT
3\. HOW WE USE PERSONAL INFORMATION
4\. HOW WE SHARE PERSONAL INFORMATION
5\. YOUR PRIVACY CHOICES AND RIGHTS
6\. INTERNATIONAL TRANSFERS OF PERSONAL INFORMATION
7\. RETENTION OF PERSONAL INFORMATION
8\. CHILDREN’S PERSONAL INFORMATION
9\. CONTACT US
1. UPDATES TO THIS PRIVACY NOTICE
We may update this Privacy Notice from time to time in our sole discretion. If we do, we’ll let you know by posting the updated Privacy Notice on our website, and we may also send other communications.
2. PERSONAL INFORMATION WE COLLECT\
We collect personal information that you provide to us, personal information we collect automatically when you use the Services, and personal information from third-party sources, as described below.
1. Personal Information You Provide to Us Directly\
We may collect personal information that you provide to us.
1. Account Information. We may collect personal information in connection with the creation or administration of your account. This personal information may include, but is not limited to, your email address and other information you store with your account.
2. Wallet Information. In order to use the Services, you will need to connect your digital wallet (a “Wallet”). We and our service providers may collect personal information and details associated with your transactions such as wallet addresses, asset types, and transaction history in connection with the Services. Note that your interactions with third-party wallet services are subject to each Wallet provider’s respective privacy policy, not this Privacy Notice.
3. Your Communications with Us. We, and our service providers, may collect any personal information you communicate to us, such as through email.
4. Surveys. We may contact you to participate in surveys. If you decide to participate, we may collect personal information from you in connection with the surveys.
5. Interactive Features. We and others who use our Services may collect personal information that you submit or make available through our interactive features (e.g., messaging features, commenting functionalities, forums, blogs, and social media pages). Any information you provide using the public sharing features of the Services will be considered “public.”
6. Sweepstakes or Contests. We may collect personal information you provide for any sweepstakes or contests that we offer. In some jurisdictions, we are required to publicly share information of sweepstakes and contest winners.
7. Conferences, Trade Shows, and Other Events. We may collect personal information from individuals when we attend or host conferences, trade shows, and other events.
8. Business Development and Strategic Partnerships. We may collect personal information from individuals and third parties to assess and pursue potential business opportunities.
9. Job Applications. If you apply for a job with us, we will collect any personal information you provide in connection with your application, such as your contact information and resume or CV.
2. Personal Information Collected Automatically\
We may collect personal information automatically when you use the Services.
1. Device Information. We may collect personal information about your device, such as your Internet protocol (IP) address, user settings, cookie identifiers, other unique identifiers, browser or device information, Internet service provider, and location information (including, as applicable, an approximate location derived from the IP address and precise geo-location information).
2. Usage Information. We may collect personal information about your use of the Services, such as the pages that you visit, items that you search for, the types of content you interact with, information about the links you click, the frequency and duration of your activities, and other information about how you use the Services.
3. Cookie Notice (and Other Technologies). We, as well as third parties, may use cookies, pixel tags, and other technologies (“Technologies”) to automatically collect personal information through your use of the Services.
1. Cookies. Cookies are small text files stored in device browsers.
2. Pixel Tags/Web Beacons. A pixel tag (also known as a web beacon) is a piece of code embedded in the Services that collects personal information about use of or engagement with the Services. The use of a pixel tag allows us to record, for example, that a user has visited a particular web page or clicked on a particular advertisement. We may also include web beacons in emails to understand whether messages have been opened, acted on, or forwarded.\
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See “[Your Privacy Choices and Rights](https://docs.google.com/document/d/1XcDY-tqGHifIQS2-MfpAPbTROT8fDyQM/edit#bookmark=id.wfwqtn8s2t4q)” below to understand your choices regarding these Technologies.
4. Personal Information Collected from Third Parties
5. We may collect personal information about you from third parties. For example, if you access the Services using a third-party website, application, service, products, or technology (each a “Third-Party Service”), we may collect personal information about you from that Third-Party Service that you have made available via your privacy settings.
3. HOW WE USE PERSONAL INFORMATION\
We use personal information for a variety of business purposes, including to provide the Services, for administrative purposes, and to provide you with marketing materials, as described below.
1. Provide the ServiceS\
We use personal information to provide the Services, such as:
1. Providing access to certain areas, functionalities, and features of the Services;
2. Communicating with you;
3. Answering requests;
4. Sharing personal information with third parties as needed to provide the Services; and
5. Processing your transaction information.
2. Improve the Services and Develop New Products and Services\
We use personal information to improve the Services and to develop new products and services, such as:
1. Improving, upgrading, or enhancing the Services.
3. Operate Our Business\
We use personal information to operate our business, such as:
1. Conducting direct marketing, research and development (including marketing research), network and information security, and fraud prevention;
2. Carrying out analytics;
3. Creating de-identified and/or aggregated information;
4. Processing applications if you apply for a job we post on our Services;
5. Allowing you to register for events;
6. Enforcing our agreements and policies; and
7. Carrying out activities that are required to comply with our legal obligations.
4. Marketing\
We may use personal information in connection with our marketing activities including to tailor and to provide you with marketing communications, promotions, and offers that may interest you.
5. With Your Consent or Direction\
We may use personal information: (i) for other purposes that are clearly disclosed to you at the time you provide the personal information, (ii) with your consent, or (iii) as otherwise directed by you.
4. HOW WE SHARE PERSONAL INFORMATION\
We share personal information with third parties for a variety of business purposes, including to provide the Services, to protect us or others, or in connection with a major business transaction such as a merger, sale, or asset transfer, as described below.
1. Disclosures to Provide the Services\
We may share any of the personal information we collect with the categories of third parties described below.
1. Disclosures to the Blockchain. Aspects of the Services may be hosted on or interact with the blockchain. Where you use aspects of the Services that are hosted on or interact with the blockchain, information about your interactions and/or transactions will be shared with the applicable blockchain network and may be accessible to third parties due to the nature of the blockchain protocol.
2. Service Providers. We may share personal information with service providers that assist us with the provision of the Services. This may include, but is not limited to, service providers that provide us with hosting services, customer service, AI or machine learning services, analytics, marketing services, IT support, and related services.
3. Other Users You Share or Interact With. The Services may allow users to share personal information or interact with other users of the Services.
4. Third-Party Services You Share or Interact With. The Services may link to or allow you to interface with, interact with, share information with, direct us to share information with, access, and/or use a Third-Party Service.\
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Any personal information shared with a Third-Party Service will be subject to the Third-Party Service’s privacy policy. We are not responsible for the processing of personal information by Third-Party Services.
5. Business Partners. We may share your personal information with business partners we work with to provide you with a product or service you have requested. We may also share your personal information with business partners with whom we jointly offer products or services.\
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Once your personal information is shared with our business partner, it will also be subject to our business partner’s privacy policy. We are not responsible for the processing of personal information by our business partners.
6. Affiliates. We may share your personal information with our corporate affiliates.
2. Disclosures to Protect Us or Others\
We may share your personal information and related information with external parties if we, in good faith, believe doing so is required or appropriate to comply with law enforcement requests, national security requests, or other government requests; comply with legal process, such as a court order or subpoena; protect your, our, or others’ rights, property, or safety; enforce our policies or contracts; collect amounts owed to us; or assist with an investigation or prosecution of suspected or actual unauthorized or illegal activity.
3. Disclosure in the Event of Merger, Sale, or Other Asset Transfers\
If we are involved in a merger, acquisition, financing, reorganization, bankruptcy, receivership, purchase or sale of assets, transition of service to another provider, or other similar corporate transaction, your personal information may be shared, sold, or transferred as part of such a transaction.
5. YOUR PRIVACY CHOICES AND RIGHTS\
Your Privacy Choices. The privacy choices you may have about your personal information are described below.
1. Email Communications. If you receive an unwanted email from us, you can use the unsubscribe functionality found at the bottom of the email to opt out of receiving future emails. Note that you will not be able to opt out of certain communications (e.g., communications regarding the Services or updates to this Privacy Notice).
2. “Do Not Track.” Do Not Track (“DNT”) is a privacy preference that users can set in certain web browsers. Please note that we do not respond to or honor DNT signals or similar mechanisms transmitted by web browsers.
3. Cookies. You may stop or restrict the placement of Technologies on your device or remove them by adjusting your preferences as your browser or device permits. However, if you adjust your preferences, the Services may not work properly.\
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Please note that cookie-based opt-outs are not effective on mobile applications. However, you may opt out of certain tracking on some mobile applications by following the instructions for [Android](https://support.google.com/googleplay/android-developer/answer/6048248?hl=en), [iOS](https://support.apple.com/en-us/HT202074), and [other mobile operating systems](https://www.networkadvertising.org/mobile-choice/).
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Your Privacy Rights. In accordance with applicable law, you may have the right to:
1. Request Access to or Portability of Your Personal Information;
2. Request Correction of Your Personal Information;
3. Request Deletion of Your Personal Information;
4. Request Restriction of or Object to Our Processing of Your Personal Information;
5. Request that Processing for the Purposes of Direct Marketing Cease or not Begin; and
6. Complain to Competent Authorities about Alleged Violations of Your Privacy Rights.\
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If you would like to exercise any of these rights, please contact us as set forth in “[Contact Us](https://docs.google.com/document/d/1XcDY-tqGHifIQS2-MfpAPbTROT8fDyQM/edit#bookmark=id.sq7xmc8ri0zz)” below.
We will process such requests in accordance with applicable laws.
6. INTERNATIONAL TRANSFERS OF PERSONAL INFORMATION\
All personal information processed by us may be transferred, processed, and stored anywhere in the world, which may have data protection laws that are different from the laws where you live.
7. RETENTION OF PERSONAL INFORMATION\
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We store the personal information we collect as described in this Privacy Notice for as long as you use the Services, or as long as necessary to fulfill the purpose(s) for which it was collected, or as long as necessary to pursue our business purposes.\
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To determine the appropriate retention period for personal information, we may consider applicable legal requirements; the amount, nature, and sensitivity of the personal information; certain risk factors; the purposes for which we process your personal information; and whether we can achieve those purposes through other means.
8. CHILDREN’S PERSONAL INFORMATION\
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The Services are not directed to children under 18, and we do not knowingly collect personal information from children.\
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If you are a parent or guardian and believe that your child has uploaded personal information to the Services in violation of applicable law, you may contact us as described in “[Contact Us](https://docs.google.com/document/d/1XcDY-tqGHifIQS2-MfpAPbTROT8fDyQM/edit#bookmark=id.sq7xmc8ri0zz)” below.
9. CONTACT US\
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If you have any questions about our privacy practices or this Privacy Notice, or to exercise your rights as detailed in this Privacy Notice, please contact us at: .
# Brand Guidelines
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# FAQ
Frequently Asked Questions
General
**What is Apyx?**
APYX is a synthetic dollar protocol that transforms digital credit into programmable money. The protocol delivers double-digit yields by channeling dividend payments from underlying credit assets into onchain liquidity.
**What are the different assets in the ecosystem?**
The protocol uses four core assets:
* **apxUSD:** The ultimate programmable money solution reinvented by DAT collateral.
* **apyUSD:** The yield-bearing token received when you lock apxUSD. Yield is sourced from dividends paid by the DAT preferred shares backing apxUSD and incremented linearly to increase price of apyUSD.
* **Points:** Points are earned through qualifying actions such as holding, locking, committing assets, providing liquidity, or trading yield-based tokenized products.
* **APYX:** The future governance token.
**What is apxUSD?**
apxUSD is the protocol’s synthetic dollar. It is designed to function as a liquidity layer across DeFi while maintaining value. However, unlike USDT or USDC, it is not simply 1:1 backed by cash in a bank. It is backed by an overcollateralized surplus of high-quality, low-volatility assets like STRC, which serve as the protocol's reserve. This structure ensures a margin of safety even during market stress. Holders of apxUSD do not have a direct claim on preferred shares; the preferred shares serve as a reserve that supports the protocol's ability to redeem apxUSD for USDC.
**What is apyUSD?**
apyUSD is a yield-bearing token, minted when apxUSD is staked into the permissionless Apyx vault. As yield is generated from dividends from the preferred shares, the value of apyUSD grows linearly.
**How does apyUSD earn yield?**
Yield is generated from the dividend produced by the diverse portfolio of DAT preferred shares. This value is distributed to apyUSD holders through an increasing exchange rate.
**What is Apyx and how is it different from stablecoins?**
Apyx is a Dividend-Backed Dollar (DBD) protocol built to bridge the gap between traditional finance and DeFi. Unlike standard stablecoins backed by idle fiat cash, the Apyx synthetic dollar (apxUSD) is overcollateralized by dividend-bearing DAT preferred shares. This design allows Apyx to transform offchain dividend cash flows into programmable, onchain yield, offering users a unique way to access the productivity of real-world financial markets
**Can I lock and unlock my assets on Layer 2 networks?**
While apxUSD and apyUSD can be used across multiple Layer 2 networks for various DeFi activities, the primary Apyx Vault resides on the Ethereum Mainnet. If you want to lock or unlock your assets, you will need to bridge back to the Ethereum Mainnet to access the official Apyx Vault.
**How is Apyx different from other synthetic dollars?**
While traditional synthetic dollars rely on market-volatile derivatives, Apyx bridges regulated equity with onchain efficiency. This structure provides reliable yield from corporate dividends rather than funding rates and ensures safety by holding Nasdaq-listed preferred shares instead of managing complex hedges on CEXs. It also delivers predictable growth via a monthly vesting contract that streams yield every second, ensuring the value of apyUSD increases evenly.
apxUSD
**How can I get apxUSD?**
For the vast majority of users, acquiring apxUSD is seamless and does not require complex minting procedures.
* **For General Users:** You can buy apxUSD directly on the secondary market using the Apyx Swap tab in the dApp. This routes your transaction through liquidity pools (like Curve) to swap USDC for apxUSD.
* **For Permissioned Minting:** This is a permissioned process reserved for institutional partners; please contact the Apyx team for more information.
**Is apxUSD overcollateralized?**
Yes. The overcollateralization buffer is held above Redemption Value and is not consumed during routine redemptions. It grows over time via yield spreads and collateral appreciation, and is distributed pro-rata to holders in catastrophic wind-down scenarios.
**What can I do with apxUSD?**
apxUSD can serve multiple purposes within the DeFi ecosystem. Hold as store of value → Earn points (5x multiplier, time-weighted)
* Lock apxUSD → Receive apyUSD and earn yield (1x multiplier)
* Commit apxUSD → Earn 20x points multiplier
* Participate in whitelisted DeFi → Earn points with bonus multiplier and yield (Curve LP, Pendle, etc.)
**What is the apxUSD flywheel?**
When apxUSD trades at a premium relative to its backing, minters may mint additional apxUSD and purchase more preferred equity collateral. This expands the collateral base, deepens liquidity, and increases the dividend capacity that supports apyUSD.
**What does committing apxUSD do?**
Committing apxUSD means you earn a 20x points multiplier in exchange for agreeing to a 14-day cooldown period when uncommitting. While your apxUSD is committed, you cannot use it elsewhere until you uncommit it.
**How does apxUSD aim to maintain its peg?**
apxUSD is designed to trade between Redemption Value (a floor that tracks the underlying basket) and Total Collateral Value (the full reserve). Whitelisted arbitrageurs mint and redeem at Redemption Value; an RFQ system provides additional redemption flexibility during periods of stress.
**What happens if the value of the preferred shares fluctuates?**
Redemption Value moves with the basket, so apxUSD's redemption price reflects the current value of the underlying preferreds, dampened by the cash portion of the reserve. The overcollateralization buffer absorbs catastrophic events, not routine volatility.
Lock & Unlock
**What is locking and unlocking?**
Locking apxUSD into the Apyx vault will provide you with apyUSD. When you unlock your apyUSD, you will receive more apxUSD than you had previously locked due to the accrued yield. You do not accrue yield during the cooldown period.
**How long is the cooldown for unlocking?**
Unlocking is an asynchronous process that takes approximately 20 days.
**How do I unlock my apyUSD?**
To convert your yield-bearing apyUSD back into the synthetic dollar apxUSD, you must first unlock it. This process consists of three steps: submitting an Unlock Request, waiting for the mandatory cooldown period to end, and finally clicking Claim to receive your tokens.
**What happens if many users unlock at once?**
Even when a large number of users process unlocks, there will be no issues with unlocking apyUSD. The redemption will not exceed approximately 20 days.
**What happens if I add more to my unlock request?**
You can only have one pending unlock request at a time. Adding more apyUSD to an existing request will reset your 20-day cooldown back to the beginning.
Yield & Pips (Point Program)
**How do I start earning yield?**
You must lock your apxUSD into the Apyx vault to instantaneously receive the yield-bearing apyUSD. Note that first-time users must complete a two-step transaction: Approve apxUSD, then Confirm the Lock.
**What are Apyx Pips?**
Pips is the points program for Apyx. A Pip is equivalent to a point and represents your participation and engagement within the ecosystem.
**How can I calculate my potential earnings?**
Our APY Calculator on the Locking page allows you to input an amount of apxUSD and see a 1-year yield projection based on current rates.
**Do my apyUSD rewards rebase or auto-compound?**
Balances do not rebase. Instead, yield is directly accrued into the vault as apxUSD. As yield accrues to the vault, the exchange rate of apyUSD increases relative to apxUSD. When you redeem your tokens, you will receive more apxUSD than you initially deposited.
**Is there a minimum amount required to earn yield?**
There is no minimum to start earning yield with apyUSD. However, users may keep in mind the potential gas when locking.
**How do I earn points?**
Points are earned by holding or participating in the ecosystem:
* Holding apxUSD: 40x Pips Multiplier.
* Locking for apyUSD: 4x Pips Multiplier (but you also earn yield).
* Commit apxUSD (14-day opt-in): 196x Pips Multiplier on apxUSD (capped at $100M).
* Whitelisted DeFi: Bonus Pips multipliers (up to 128x) for positions like Curve LP or Pendle.
For more information, refer to the Apyx Rewards section.
**Are there extra points for referrals?**
Referrers earn an additional 5% of the points earned by referred users. Referral rewards are capped at 100% of the referrer’s own points, and no additional bonus is granted for using a referral link.
**When does Season 2 end?**
Season 2 ends on October 11, 2026. Additional details can be found [here](https://docs.apyx.fi/apyx-overview/apyx-pips-points-program/season-2).
**Do I earn more points for holding apyUSD?**
Actually, holding apxUSD (40x) earns more points than apyUSD (4x). You must choose: maximize points (hold apxUSD) or prioritize Yield (lock for apyUSD).
**Why have my rewards stopped updating?**
There are many possibilities as to why rewards have stopped updating:
* You exited all of your DeFi positions.
* Rewards dashboard is not showing updated values as it only updates once daily.
* You have requested to unlock your apyUSD. apyUSD that is in the process of unlocking do not earn rewards.
* From time to time, a UI bug may occur. In such cases, our team works to resolve it as quickly as possible, and rest assured, users will continue to earn rewards without interruption.
**Do I need to commit my Curve LP tokens to earn points?**
Yes, users must commit their LP tokens to earn points. If the LP tokens are not committed, users will not earn the points. Only the swap fees.
**Do Pendle PT positions earn points?**
No, part of Pendle's design is users sacrifice yield and rewards when entering a PT position, receiving a fixed yield in return.
Troubleshooting & Fees
**What do these error messages mean?**
* **CooldownNotComplete:** You are attempting to claim your apxUSD before the 14-day wait period is over.
* **Denied:** Please go to our Discord and ask for support regarding Denied errors. Screenshots and a detailed report will help in pinpointing the error.
**Are hardware wallets supported?**
Yes, Apyx supports hardware wallets.
**What should I do if I have a problem?**
We recommend reaching out to us in our official Discord with as much detail as possible(wallet address, tx IDs, screenshots, etc). We will never personally DM you or redirect you to another Discord.
**How long does it take to get a response after I report an issue?**
We work hard to reply as quickly as we can. In most cases, you’ll hear back from us within 1–3 days. However, more complex issues (especially those requiring bug fixes) may take a bit longer depending on our current workload and the time needed to properly resolve them.
**Are there any additional fees while using the product?**
The only fee is a minimal redemption fee when converting apyUSD to apxUSD to cover operation costs.
Security & Risks
#### i. Liquidity Risk
**What are the liquidity risks of apxUSD and apyUSD?**
* apxUSD Liquidity: Most users acquire apxUSD through DEX swaps. If DEX liquidity is low, users may experience high slippage when buying or selling large amounts.
* apyUSD Exit Delay: Unlocking apyUSD is an asynchronous process with a mandatory cooldown period (\~20 days). This means you cannot instantly access the underlying apxUSD in the event of high market volatility.
**What happens if I add to my unlock request during the cooldown?**
Adding more apyUSD to an existing pending unlock will reset the entire cooldown period for the total amount.
**Who assumes the cost of slippage?**
Users assume the cost of slippage for all DEX-based entries and exits. The Apyx Swap tab is routes transactions efficiently to help minimize slippage.
#### ii. Collateral Risk
**What happens if the value of the preferred shares fluctuates?**
The Apyx protocol is explicitly engineered to absorb these fluctuations through a mandatory overcollateralization buffer designed to act as a margin of safety against market stress. Furthermore, the preferred shares themselves feature an embedded economic mechanism that increases dividend yields during price dips, creating arbitrage opportunities that incentivize the market to restore the asset's value
**How does the protocol manage yield distribution risks?**
Yield is deposited into a vesting contract and distributed linearly over \~28 days. This smooths out yield and prevents sudden APY spikes, but it also means yield is not realized instantly.
**What are the variables of apyUSD value growth?**
apyUSD value grows through an exchange rate mechanism. If the dividends do not generate sufficient yield, the exchange rate may stagnate. Users can view the performance metrics directly on the app.
**What specific assets act as collateral?**
apxUSD is backed by a diverse portfolio of DAT preferred shares. An example allocation can be viewed in the docs under “Example allocation”.
**Is the collateral susceptible to Bitcoin or market price crashes?**
While preferred shares are more senior than common stock, they are still equities. A significant downturn in the crypto industry could affect the dividend-paying ability of the underlying companies, impacting the protocol's yield source. However, several incentive measures are used to provide stability.
#### iii. Custody Risk
**How is apxUSD secured and verified?**
Because apxUSD is backed by offchain assets, Apyx implements a "don't trust, verify" standard. The protocol provides the following transparency measures:
* **Third-Party Attestations:** Apyx obtains monthly accounting attestations from a PCAOB-registered audit firm.
* **Assertion-Based Reporting:** These are examination-level reports, providing stronger assurance than standard "confirmation emails" or simple screenshots.
* **Real-Time Dashboard:** Users can monitor capital deployment and current reserve positions directly through the dApp dashboard.
**How is the collateral custodied?**
The custody is managed by multiple parties and MPC keys are managed by both Apyx and partners, no singular entity has the ability to mismanage the funds.
**Is it possible for the team to spontaneously remove collateral?**
As the custody of the collateral is managed by multiple parties, and the MPC keys are managed by both Apyx and the custody solution partners, no singular entity has the ability to mismanage the funds.
**Where can I see the protocol's backing?**
The Apyx dashboard provides a view into capital deployment and the current reserve position.
**Is the protocol audited?**
Yes. Apyx prioritizes security through comprehensive, chronological audits performed by leading industry experts(such as Zellic and Certora). This page can be accessed under Technical Overview in the Docs.
**How is the price of apyUSD calculated?**
The redemption value is calculated based on the exchange rate at the moment you submit your request to unstake. You receive your principal plus the value increase accrued up to that specific moment. This locks in your rate before the cooldown begins, ensuring fairness
**What backs the apxUSD 1:1 peg?**
Stability is supported by an overcollaterized reserve of DAT preferred shares. You can view the Reserves Page in the app to see the current Total Reserves, Reserve Ratio, and a breakdown of the asset types backing the protocol.