The following describes the complete path of value from charter revenue to investor wallet, as implemented in the live Tulip deployment.
| Step | Actor / System | Action |
|---|---|---|
| 1 | Charterer | Pays monthly time charter hire to the SPV operating bank account at $15,675/day × days in month. |
| 2 | Technical manager (Kaptanoglu) | Submits monthly operating expense invoice. One ship company pays crew wages, maintenance, insurance, management fees from operating account. |
| 3 | SPV / Onramp partner | Net operating income (revenue minus expenses) is converted from fiat USD to USDC via a regulated onramp partner. |
| 4 | SPV | USDC is transferred to the Tulip distribution smart contract address on Base. |
| 5 | Distribution contract | Contract takes a snapshot of all wTOKEN holder addresses and balances. Calculates per-token USDC distribution amount. |
| 6 | Distribution contract | Batched USDC transfer: USDC is sent directly to each verified wTOKEN holder wallet address. |
| 7 | Base blockchain | Distribution event emitted onchain. Block, total distributed, per-token rate, and all recipient addresses permanently recorded. |
The following describes the possible states of a Fractalized asset token and the conditions under which state transitions occur.
| State: Unminted | Token does not exist. No holder. Transitions to Unwrapped on primary issuance when investor completes KYC and purchases. |
|---|---|
| State: Unwrapped (base token) | Token exists as a standard ERC-20. Can be transferred freely. Does not earn yield distributions. Holder is not required to be KYC-verified. Transitions to Wrapped when holder initiates wrap via the router and is on the KYC allowlist. Transitions to Unminted (burned) if sold back to the liquidity pool as part of a Sell transaction. |
| State: Wrapped (wTOKEN) | Token is held by a KYC-verified address. Earns yield distributions at each distribution event. Can only be transferred to another address on the KYC allowlist. Transitions to Unwrapped when holder initiates Sell via the router (unwrap + pool sale in single atomic transaction). Transitions to Unwrapped if the holder's address is removed from the KYC allowlist (e.g., AML alert), pending remediation. |
| Allowlist Management | The KYC allowlist is maintained by Fractalized's compliance function. Addresses are added upon successful KYC/AML completion. Addresses may be suspended pending investigation of AML alerts. The allowlist is stored onchain in the wrapper contract. Even if Fractalized's offchain systems were unavailable, the onchain allowlist would continue to enforce compliance correctly. |
| Distribution Snapshot | At the designated distribution block, the distribution contract records all addresses with wTOKEN balances > 0 and their respective balances. Distribution is proportional to balance. Addresses added to the allowlist after the snapshot block do not receive the current distribution but will receive subsequent distributions. |
The following checklist summarises the due diligence questions applied to every asset considered for admission to the Fractalized platform. It is provided to demonstrate the rigour of the admission process and to give distribution partners and institutional investors a framework for their own evaluation.