AQ CAPITAL

Token Architecture — Technical Specification

ERC-3643 tokenised fund infrastructure: smart contracts, identity, NAV oracles, mint/redeem flows, multi-chain deployment, and security model.

March 2026 v1.0 CONFIDENTIAL
Contents
01

Token Standard — ERC-3643 (T-REX Protocol)


What is ERC-3643?

ERC-3643, also known as the T-REX (Token for Regulated EXchanges) Protocol, is a permissioned ERC-20 token standard with a built-in identity layer. It extends the standard ERC-20 interface to enforce transfer restrictions at the protocol level — every token transfer is validated against an on-chain compliance module before execution.

The standard was developed by Tokeny Solutions and became the first security token standard to receive ISO recognition. It is formally referenced in the ISO/TR 23455:2024 framework for blockchain-based securities.

Why ERC-3643 over alternatives?

Standard Comparison

Standard Permissioned On-Chain ID DeFi Compatible Multi-Chain Institutional Adoption
ERC-20 No No Yes Yes Low
ERC-1400 Yes No Limited Limited Medium
ERC-3643 Yes Yes (ONCHAINID) Yes Yes High (BlackRock, Securitize)
ERC-3525 No No Yes Limited Low

Key Components

Core
Token Contract
ERC-20 compliant token with transfer() and transferFrom() hooks that check the compliance module before every transfer executes.
Identity
Identity Registry
Maps wallet addresses to on-chain identity contracts (ONCHAINID). Stores verification status and links to claim attestations.
Compliance
Compliance Module
Modular rule engine evaluated on every transfer. Enforces jurisdiction restrictions, investor caps, lock-up periods, and accreditation checks.
Trust
Claim Topics Registry
Defines what claims (KYC, accreditation, jurisdiction) are required for a wallet to hold or transfer tokens.
02

Smart Contract Architecture


Each AQ segregated portfolio deploys its own token contract with shared identity infrastructure. The contract hierarchy below represents a complete deployment for a single fund token (e.g. AQ-YIELD).

Core Token Layer

Token (ERC-3643)
Per segregated portfolio. The investor-facing ERC-20 token with built-in compliance hooks.
Key Functions
transfer(), mint(), burn(), pause(), setCompliance(), setIdentityRegistry()
Admin Roles
Owner TransferAgent
Upgrade
UUPS proxy — 48h timelock, 3-of-5 multi-sig

Identity Layer

IdentityRegistry
Maps wallet addresses to verified ONCHAINID identity contracts. Queried on every token transfer to validate sender/receiver.
Key Functions
registerIdentity(), removeIdentity(), updateIdentity(), isVerified(), identity()
Admin Roles
ComplianceAgent TransferAgent
Upgrade
UUPS proxy — shared across all fund tokens
IdentityRegistryStorage
Persistent storage for identity attestations. Separates storage from logic to enable registry upgrades without data migration.
Key Functions
addIdentityToStorage(), modifyStoredIdentity(), removeIdentityFromStorage()
Admin Roles
Owner
Upgrade
Non-upgradeable (pure storage)
TrustedIssuersRegistry
Maintains the list of approved claim issuers (KYC providers like Sumsub/Jumio). Only claims from trusted issuers are accepted.
Key Functions
addTrustedIssuer(), removeTrustedIssuer(), isTrustedIssuer(), getTrustedIssuers()
Admin Roles
Owner
Upgrade
UUPS proxy — 48h timelock
ClaimTopicsRegistry
Defines which claim topics (KYC, accredited investor, jurisdiction) are required for token holders.
Key Functions
addClaimTopic(), removeClaimTopic(), getClaimTopics()
Admin Roles
Owner
Upgrade
UUPS proxy

Compliance Layer

ComplianceModule
Modular compliance engine attached to the token contract. Evaluates transfer rules: country restrictions, investor limits, lock-up periods.
Key Functions
canTransfer(), transferred(), addModule(), removeModule(), callModuleFunction()
Admin Roles
ComplianceAgent Owner
Upgrade
Modular — individual modules can be swapped without touching the token contract

Oracle & Controller Layer

NAVOracle
Receives daily NAV per token from fund admin. Published via Chainlink Custom Feed or Pyth Network push oracle.
Key Functions
publishNAV(), getLatestNAV(), getTimestamp(), isStale(), verifySignature()
Admin Roles
NAVUpdater (2-of-3 multi-sig: fund admin, AQ ops, trustee)
Upgrade
UUPS proxy — 48h timelock
MintRedeemController
Handles subscription (mint) and redemption (burn) at NAV. Enforces gate provisions, minimum amounts, and staleness checks.
Key Functions
subscribe(), requestRedemption(), processRedemption(), setGateLimit(), pause()
Admin Roles
TransferAgent Owner
Upgrade
UUPS proxy — 48h timelock
YieldDistributor
Optional USDC drip for retail-oriented tokens. Distributes yield pro-rata to token holders on a configurable schedule.
Key Functions
distributeYield(), claimYield(), setSchedule(), getUnclaimedYield()
Admin Roles
Owner
Upgrade
UUPS proxy
03

Identity & Compliance Layer


ONCHAINID Standard

ONCHAINID is the on-chain identity standard used by ERC-3643. Each investor deploys a lightweight identity proxy contract (ERC-735/ERC-734) that stores cryptographic attestations (claims) about their identity. Claims are signed by trusted issuers — the investor never reveals raw PII on-chain, only cryptographic proofs that they passed verification.

KYC Verification Flow

Investor Onboarding — KYC to Wallet Whitelist
1Investor Signup
AQ Portal registration form
2Sumsub / Jumio
ID verification, liveness, document check
3Off-Chain Verification
AML/sanctions screening, accreditation
4Claim Issuance
Trusted issuer signs on-chain claim
5Identity Registry
Wallet mapped to ONCHAINID contract
6Wallet Whitelisted
Can hold/transfer AQ tokens

Compliance Rules — Enforced on Every Transfer

The ComplianceModule evaluates every transfer() and transferFrom() call. If any rule fails, the transaction reverts.

Rule Description Enforcement
KYC Verification Both sender and receiver must have valid KYC claims in the Identity Registry On-chain — IdentityRegistry.isVerified()
Jurisdiction Whitelist Transfers blocked to/from wallets linked to OFAC-sanctioned or restricted jurisdictions On-chain — CountryModule
Accreditation Check US investors must hold accredited investor claim (Reg D 506(c)). Non-US investors exempt under Reg S. On-chain — ClaimTopics verification
Max Holder Count Configurable limit on total unique holders per token (e.g. 99 for Reg D, 2000 for Reg A+) On-chain — MaxHolderModule
Lock-Up Period Tokens cannot be transferred within the lock-up window post-mint (e.g. 12 months for Reg D) On-chain — TimeLockModule
AML Monitoring Ongoing transaction monitoring with Chainalysis/Elliptic. Suspicious wallets can be frozen by ComplianceAgent. Hybrid — off-chain monitoring, on-chain freeze
Claim Expiry: KYC claims have a configurable expiry (typically 12 months). Expired claims must be renewed before the wallet can transact. The compliance module checks claim validity timestamps on every transfer.
05

Mint / Redeem Flow


Subscription (Mint)

Subscription Flow — Investor to Token
1KYC Complete
Investor verified on AQ Portal
2Identity Attested
ONCHAINID claim issued to wallet
3Deposit Sent
BTC / USDC / USD to deposit address
4Receipt Confirmed
Fund admin confirms, calculates NAV
5Tokens Minted
AQ tokens at NAV rate
6Wallet Credited
Tokens appear in investor wallet
Post-Subscription: Underlying BTC is posted as collateral on Deribit/AAVE, USDC is borrowed against it, and USD proceeds are deployed into the fund's yield strategies (covered calls, basis trades, DeFi lending).

Redemption (Burn)

Redemption Flow — Token to Investor
1Request Redemption
Investor calls requestRedemption()
2Queue Entry
T+1 to T+3 settlement window
3NAV Calculated
Fund admin determines redemption NAV
4Position Unwinding
Trading engine frees liquidity
5Tokens Burned
Smart contract burns token supply
6USDC Released
Funds sent to investor wallet
Gate Provision: Redemptions exceeding 5% of total fund AUM per quarter may be subject to a gate mechanism — maximum 25% of outstanding redemption requests processed per quarter. This protects remaining investors from forced liquidation in stressed market conditions.
06

Multi-Chain Deployment


Ethereum Mainnet
PRIMARY
Gas Cost~$10–$50 / tx
DeFi DepthDeepest
CredibilityHighest
Primary deployment for institutional credibility. Deepest DeFi composability (Aave, Compound, Curve). Highest gas costs — suitable for large-value transactions.
AQ-YIELD AQ-TBASIS AQ-STABLE
Base (Coinbase L2)
L2
Gas Cost~$0.01 / tx
DistributionCoinbase Native
USDCNative Circle USDC
Ultra-low gas, native Coinbase distribution channel, USDC-native ecosystem. Fastest path to CeFi exchange integration and retail accessibility.
AQ-YIELD AQ-TBASIS AQ-STABLE AQ-BTC
Avalanche C-Chain
RWA ECOSYSTEM
Gas Cost~$0.02 / tx
RWA PartnersSecuritize, Ondo
IncentivesAVAX Foundation RWA
Established RWA ecosystem with Securitize and Ondo deployments. Avalanche Foundation provides RWA-specific incentive programs. Low cost, fast finality.
AQ-YIELD AQ-STABLE
Polygon PoS
BROAD REACH
Gas Cost~$0.005 / tx
Exchange IntegrationsBroadest
User BaseLarge
Broad exchange integration, ultra-low cost, largest user base. Ideal for maximum accessibility and secondary market liquidity.
AQ-YIELD AQ-TBASIS AQ-STABLE AQ-BTC

Cross-Chain Mechanics

07

Technology Stack


Component Technology Role
Smart Contracts Solidity 0.8.x, ERC-3643 Token issuance, compliance enforcement, NAV-based mint/redeem
Security Audit Trail of Bits + Consensys Diligence Dual audit — manual review (ToB) + automated + manual (Consensys)
Frontend React / Next.js, wagmi, RainbowKit AQ Portal — investor dashboard, KYC flow, subscription/redemption UI
Backend Python (FastAPI) + Node.js Subscription management, reporting, NAV ingestion, webhook handlers
KYC / AML Sumsub Identity verification, document checks, liveness detection, ongoing monitoring
On-Chain Identity ONCHAINID (ERC-735 / ERC-734) Wallet-level identity attestations, claim storage, trusted issuer verification
NAV Oracle Chainlink Custom Feed On-chain NAV publication, staleness protection, anomaly detection
Custody Fireblocks / BitGo Institutional-grade asset custody, MPC wallet infrastructure, policy engine
Transfer Agent Securitize Record keeping, ATS (Alternative Trading System) for secondary market, cap table
Fund Admin Citco / NAV Consulting Daily NAV calculation, investor record keeping, regulatory reporting
Monitoring OpenZeppelin Defender Contract monitoring, automated incident response, admin action proposals
Deployment Hardhat + Safe (multi-sig) Deterministic deployment, upgrade proposals, multi-sig admin operations
08

Security Model


Upgrade & Access Control

Upgrades
UUPS Proxy + 48h Timelock
All upgradeable contracts use the UUPS (Universal Upgradeable Proxy Standard) pattern. Upgrade proposals require a 48-hour timelock, giving stakeholders time to review and veto. Timelock is enforced by a TimelockController contract with 3-of-5 multi-sig proposer.
Admin
3-of-5 Multi-Sig
Critical operations (pause all contracts, upgrade logic, override NAV) require 3 of 5 signers via Safe multi-sig. Signers: AQ CEO, AQ CTO, legal counsel, fund administrator, independent director.

Role-Based Access Control

Role Permissions Holder
Owner Upgrade contracts, grant/revoke roles, pause system, update registries 3-of-5 Safe multi-sig
ComplianceAgent Freeze wallets, update compliance modules, manage country lists, force transfers (recovery) AQ Compliance Officer + Legal
NAVUpdater Publish NAV updates (requires 2-of-3 multi-sig within the role) Fund Admin + AQ Ops + Trustee
TransferAgent Mint/burn tokens, process subscriptions/redemptions, manage investor records Securitize platform + AQ Ops

Audit & Bug Bounty

Primary Audit
Trail of Bits
Manual security review by one of the industry's top-tier audit firms. Focus on logic bugs, access control, upgrade safety, and cross-contract interaction risks.
Secondary Audit
Consensys Diligence
Automated analysis (Mythril, Slither) plus manual review. Coverage of ERC-3643-specific compliance logic, identity registry edge cases, and oracle manipulation vectors.
Bug Bounty
$100K–$500K via Immunefi
Tiered bounty program on Immunefi. Critical vulnerabilities (fund loss, unauthorized mint) eligible for up to $500K. Medium/low severity on a sliding scale.

Protective Mechanisms

Mechanism Trigger Action
NAV Circuit Breaker NAV change exceeds ±5% from previous publication Auto-pause mints/redeems. Require 3-of-5 override to resume.
Oracle Staleness Latest NAV publication older than 48 hours Auto-pause mints/redeems until fresh NAV published.
Rate Limiting Single address exceeds mint/redeem threshold per period Queue excess requests. ComplianceAgent manually reviews.
Emergency Pause Any 1-of-5 multi-sig signer triggers emergency pause All token transfers, mints, and redeems halted immediately.
Wallet Freeze AML alert or sanctions match on a specific wallet ComplianceAgent freezes wallet. Frozen tokens cannot be transferred.
09

Integration Points


DeFi Lending
AQ tokens listed as collateral on Aave v3 and Compound v3. Requires governance proposal on each protocol. Collateral factor determined by liquidity depth and NAV oracle reliability. Permissioned pool option for institutional-only lending.
Aave v3 / Compound v3 — Governance Proposal
DEX Liquidity
AQ-STABLE paired with USDC in Curve stable pools and Uniswap v3 concentrated liquidity. LP positions restricted to KYC'd addresses via compliance module. Yield from LP fees accrues to the fund.
Curve / Uniswap v3 — Permissioned LP
Cross-Chain Bridging
LayerZero OFT or Chainlink CCIP for canonical token bridging between Ethereum, Base, Avalanche, and Polygon. Lock-and-mint architecture preserves total supply invariant across chains.
LayerZero / Chainlink CCIP
CeFi Distribution
Coinbase listing requires Base deployment plus BD/ATS (Broker-Dealer / Alternative Trading System) registration via Securitize. Target: Coinbase Institutional and retail platform access.
Coinbase + Securitize ATS
Fund Platforms
Calastone DLT integration for tokenised fund share settlement with traditional fund platforms. Enables discovery by wealth managers and IFAs using existing fund distribution rails.
Calastone DLT
Data Feeds
Chainlink price feed for AQ token NAV. Enables downstream integrations — portfolio trackers (Zapper, DeBank), aggregators, and automated yield strategies that reference AQ token pricing.
Chainlink Price Feed