Derivatives and Debentures

!Review Required

Status: Needs Review Version: 0.1.0 Last Updated: 2026-05-16 Owner: Axodus DeFi

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Purpose

Derivatives and debentures are high-sensitivity financial concepts. They may be part of long-term DeFi, Treasury, or DaaS strategy discussions, but they must not be documented as active products unless legally, technically, operationally, and governance validated.

Definitions

Derivatives are instruments whose value depends on an underlying asset, index, rate, event, or condition.

Debentures are debt-like instruments or obligations that may represent borrowing or fixed claims subject to legal and financial review.

Structured products combine assets, strategies, or contractual rules to create specific exposure or cashflow.

Possible Contexts

Possible contexts include treasury risk management, DaaS product design, ETF DaaS basket design, client or DAO service requests, and Academy education.

Required Reviews

Productization requires governance review, treasury review, risk review, legal or compliance review, smart contract security review if on-chain, accounting review if obligations exist, user disclosure review, and BBA claim review.

Prohibited Claims

Do not claim fixed returns unless legally and contractually defined, guaranteed income, risk-free debt, regulated product status without legal basis, principal protection without legal and contractual basis, ETF or security status without basis, or public sale without review.

Risk Considerations

Risks include legal risk, leverage risk, counterparty risk, liquidity risk, valuation risk, smart contract risk, and user misunderstanding.

Financing Boundary

A financing concept must identify issuer, eligible project, instrument terms, funding asset, loss allocation, repayment source, conversion rule, jurisdiction, authority, custody, and disclosure duties. Business may describe a project need but cannot issue or promise repayment. Convertible or non-convertible models remain future financial designs pending formal, legal, technical, and financial authorization.