FAQ
Last updated
Last updated
There is a third-party custodian fee rate of 0.35% APY, with waived service fee and redemption fee. These applicable fees will be deducted automatically when interest is rebased daily.
Other applicable fees may vary depending on specific circumstances.
STBT enables daily interest distribution through rebase on Monday-Thursday and automatic rebase on Friday-Sunday. At the end of each day on Friday-Sunday (New York time), automatic daily rebase will be executed at a dynamic rate which considers both the preceding Thursday's rebase rate and the composition ratio of Reverse Repos and T-Bills.
The total supply of STBT will be adjusted to the Net Asset Value (NAV) of the underlying asset portfolio on each New York Banking Day. The NAV calculation uses Bloomberg's daily closing prices, which can be accessed via its historical prices (HP) function with reference to the Bloomberg Generic (BGN) price source on the Bloomberg Terminal. The corresponding interest will be rebased, excluding any negative interest days. Each STBT holding address will receive the rebased interest.
Due to the volatility of the T-bill market, which may be caused by various financial factors such as interest rate changes, the financial condition or credit rating of the U.S. government etc., it is possible that the fair market value (FMV) on a given day may trade lower than the FMV of the preceding day. This will result in negative interest being reflected. Matrixdock will not rebase negative interest due to restrictions within DeFi protocols and associated potential risks. Instead, Matrixdock will accumulate negative interest until it becomes positive due to increase in FMV and continue to rebase it.
When funds are deposited by accredited investors into a Matrixdock account, these funds are then invested by Matrixdock in underlying assets to mint STBT. These assets include T-bills with a maturity period of six months or less, as well as reverse repurchase agreements (reverse repo) that are fully collateralized by U.S. government-backed securities. The STBT issuance may take up to T+2 New York Banking Days based on the operational process.
When you submit a request to redeem your STBT, Matrixdock will credit the equivalent value of U.S. dollar-pegged digital assets (traded at 1:1 — so 1 STBT trades at a 1 US Dollar equivalent of stablecoin) to your account, minus any applicable fees. The STBT redemption, assuming no material adverse events, may take up to approx. T+2 New York Banking Days based on the operational process. A one-time redemption fee rate of 0.1% will be applied.
STBT offers a daily quota for T+1 (New York Banking day) quick mint and T+0 quick redemption. If the quota has been exhausted, remaining mint/redeem requests will usually be settled within T+2 days.
In the case of STBT redemption resulting in the sale of the underlying T-bill prior to maturity, the T-bill settlement price may be lower than the market price of the preceding day. For the purpose of illustration, suppose you minted 100,000 STBT, and after a period of six months, you are holding 102,500 STBT due to distributed interest. You want to redeem the total amount. We will assume the market price of the preceding day is $0.9970, the T-bill settlement price before the maturity date is $0.9965, and the fiat conversion rate is 0% to simplify the calculation.
Execution price = T-bill settlement price / the market price of the preceding day = 0.9965 / 0.997 = $0.9994985
Final amount after redemption = 102,500 * $0.9994985 = $102,448.60
For comparison, if the T-bill settlement price was $0.9980, the execution price would be 0.9980/0.997= $1.001003.