Core strategy (lyEUR & lyUSD)

The core yield strategy follows a hybrid allocation model, designed to balance stability, liquidity, and return consistency.

1. SARR Investment Fund (Core)

The underlying assets are held inside a regulated investment fund domiciled in Luxembourg, focusing on Revenue-Based Financing. This approach targets short-dated, senior exposures backed by contractual recurring revenues.

Typical characteristics include:

• Short duration (often ≤ 12 months),

• Senior positioning across transactions,

• Underwriting based on recurring revenue quality (churn, concentration, cash-flow visibility),

• Progressive diversification across issuers and verticals.

2. Digital Market Infrastructure Allocation (Complementary)

A smaller portion of the portfolio may be allocated to high-quality overcollateralized lending markets (blue-chip venues) to support liquidity management and enhance capital efficiency, within predefined risk constraints.

3. Liquidity Buffer

A dedicated liquidity buffer may be maintained to support day-to-day redemption flows and operational settlement requirements.

4. Liquidity Buffer

Asset Allocation Model

Ledgity applies a diversified model combining regulated RWA with on-chain liquidity management:

• 80% - 90% — Off-chain regulated RWA

  • Short-term fixed income

  • Corporate and government debt

  • High-grade receivables

  • Instruments managed inside the Luxembourg fund

  • Full due diligence + monthly NAV valuation

• 5%-15% — On-chain integrations

  • Blue-chip DeFi money markets (e.g., Aave)

  • Capital-efficient liquidity optimizations

  • Always non-custodial

• 5% — Liquidity Buffer (instant withdrawals)

  • Immediate liquidity for user redemptions

  • Allocated automatiquement in AAVE pool

  • Fully visible on-chain

This model allows Ledgity to deliver a stable daily yield (~9% APY) with controlled risk and full transparency.

Allocation bands may evolve depending on market conditions, liquidity needs, and AUM growth.

5. Custody & Valuation

Custodian

The Luxembourg investment fund has its own regulated custodian responsible for:

• Safekeeping the assets

• Settlement of financial instruments

• Oversight of cash movements

Valuation Agent

The fund appoints an independent valuation entity responsible for:

• Monthly NAV calculation

• Pricing of assets

• Reporting to auditors and regulator

Auditors

Yes — the fund is audited annually by a certified external auditor.