> ## Documentation Index
> Fetch the complete documentation index at: https://docs-staging.centuari.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Custody Integration

> How Centuari integrates with RWA token custodians

## Overview

RWA tokens represent claims on real-world assets held by custodians. Understanding the custody chain is essential for assessing the security of RWA collateral.

## Custody Architecture

```
┌─────────────────────────────────────────────────────────┐
│                    User Wallet                          │
│              (holds RWA tokens)                         │
└─────────────────────────────────────────────────────────┘
                          │
                          ▼
┌─────────────────────────────────────────────────────────┐
│              Centuari Collateral Manager                │
│        (smart contract holds tokens during loan)        │
└─────────────────────────────────────────────────────────┘
                          │
                          ▼
┌─────────────────────────────────────────────────────────┐
│                  RWA Token Contract                     │
│         (e.g., AAPL.t from Backed)                     │
└─────────────────────────────────────────────────────────┘
                          │
                          ▼
┌─────────────────────────────────────────────────────────┐
│                    Token Issuer                         │
│         (Backed, Ondo, Paxos, etc.)                    │
└─────────────────────────────────────────────────────────┘
                          │
                          ▼
┌─────────────────────────────────────────────────────────┐
│                 Qualified Custodian                     │
│     (Interactive Brokers, Bank of New York, etc.)      │
└─────────────────────────────────────────────────────────┘
                          │
                          ▼
┌─────────────────────────────────────────────────────────┐
│                  Underlying Asset                       │
│        (Apple stock, gold bars, T-bills)               │
└─────────────────────────────────────────────────────────┘
```

## Approved Custodians

### Backed Assets

| Component         | Provider            | Details                      |
| ----------------- | ------------------- | ---------------------------- |
| Primary Custodian | Interactive Brokers | SEC-registered broker-dealer |
| Administrator     | Backed Assets GmbH  | Swiss regulated              |
| Audit             | Grant Thornton      | Monthly attestations         |

**Security Features**:

* Segregated client accounts
* SIPC insurance (up to \$500k per account)
* Regular third-party audits

### Ondo Finance

| Component          | Provider       | Details               |
| ------------------ | -------------- | --------------------- |
| Primary Custodian  | Clear Street   | Prime brokerage       |
| Fund Administrator | NAV Consulting | Daily NAV calculation |
| Audit              | Big 4 firm     | Quarterly audits      |

**Security Features**:

* Bankruptcy-remote structure
* US Treasury direct holdings
* Institutional-grade custody

### Paxos

| Component         | Provider          | Details                     |
| ----------------- | ----------------- | --------------------------- |
| Primary Custodian | Brink's           | London Good Delivery vaults |
| Administrator     | Paxos Trust       | NYDFS regulated             |
| Audit             | WithumSmith+Brown | Monthly attestations        |

**Security Features**:

* Physical gold bars (numbered, serialized)
* Multiple vault locations
* Full insurance coverage

## Due Diligence Process

Before approving an RWA token, Centuari verifies:

<Steps>
  <Step title="Legal Review">
    * Corporate structure
    * Regulatory licenses
    * Terms of service
    * Redemption rights
  </Step>

  <Step title="Custody Verification">
    * Custodian identity and regulation
    * Segregation of assets
    * Insurance coverage
    * Bankruptcy remoteness
  </Step>

  <Step title="Operational Review">
    * Minting/redemption process
    * Price feed sources
    * Incident history
    * Disaster recovery
  </Step>

  <Step title="Technical Audit">
    * Smart contract security
    * Admin key management
    * Upgrade mechanisms
    * Oracle integration
  </Step>
</Steps>

## Redemption Flow

If needed, RWA tokens can be redeemed for underlying assets:

<Tabs>
  <Tab title="Backed (Stocks)">
    <Steps>
      <Step title="Initiate Redemption">
        User requests redemption through Backed portal
      </Step>

      <Step title="Issuer KYC">
        Must pass Backed's KYC requirements (this is the issuer's process, not Centuari's)
      </Step>

      <Step title="Token Burn">
        Tokens burned on-chain
      </Step>

      <Step title="Stock Transfer">
        Underlying shares transferred to user's brokerage
      </Step>

      <Step title="Settlement">
        T+2 settlement for US equities
      </Step>
    </Steps>

    **Timeline**: 3-5 business days
    **Minimum**: \$10,000 equivalent
    **Fees**: \~0.5% redemption fee
  </Tab>

  <Tab title="Ondo (Treasuries)">
    <Steps>
      <Step title="Redemption Request">
        Submit through Ondo portal
      </Step>

      <Step title="Verification">
        Accredited investor status confirmed
      </Step>

      <Step title="Token Burn">
        USDY/OUSG tokens burned
      </Step>

      <Step title="Wire Transfer">
        USD wired to user's bank account
      </Step>
    </Steps>

    **Timeline**: 1-2 business days
    **Minimum**: \$5,000
    **Fees**: None for standard redemptions
  </Tab>

  <Tab title="Paxos (Gold)">
    <Steps>
      <Step title="Choose Redemption Type">
        USD or physical gold
      </Step>

      <Step title="Initiate Request">
        Through Paxos portal
      </Step>

      <Step title="Token Burn">
        PAXG tokens burned
      </Step>

      <Step title="Settlement">
        USD wire or gold delivery arranged
      </Step>
    </Steps>

    **Timeline**: 1-3 business days (USD), weeks (physical)
    **Minimum**: \$1,000 (USD), 1 oz (physical)
    **Fees**: Variable based on method
  </Tab>
</Tabs>

## Centuari's Role

Centuari does **not** custody underlying assets. Our role:

| We Do                         | We Don't                          |
| ----------------------------- | --------------------------------- |
| Hold RWA tokens as collateral | Hold underlying stocks/bonds/gold |
| Verify custodian quality      | Provide custody services          |
| Monitor issuer health         | Guarantee issuer solvency         |
| Enable liquidation of tokens  | Redeem underlying directly        |

## Risk Mitigation

### Issuer Failure

If an RWA token issuer becomes insolvent:

1. **Bankruptcy-Remote Structure**: Most issuers use SPVs that protect assets
2. **Priority Claims**: Token holders have priority claim on underlying
3. **Protocol Response**: Asset immediately removed from collateral list
4. **Insurance**: Protocol insurance fund covers shortfall

### Custody Failure

If a custodian fails:

1. **Segregated Accounts**: User assets not commingled with custodian assets
2. **Insurance Coverage**: SIPC (securities), Lloyd's (gold)
3. **Recovery Process**: Coordinated through issuer

### Oracle Manipulation

Price feed attacks are mitigated by:

1. **Multiple Sources**: Chainlink aggregates multiple data providers
2. **Deviation Limits**: Large single-block moves rejected
3. **TWAP Fallback**: Time-weighted average resists manipulation
4. **Circuit Breakers**: Trading halted on extreme moves

## Monitoring & Alerts

Centuari continuously monitors custody health:

| Metric                  | Frequency | Alert Threshold |
| ----------------------- | --------- | --------------- |
| Attestation Publication | Daily     | >7 days late    |
| Reserve Ratio           | Real-time | \<100%          |
| Redemption Delays       | Daily     | >2x normal      |
| Custodian Credit Rating | Monthly   | Downgrade       |

### Recent Incidents

<Info>
  Transparency: We report any custody-related incidents affecting supported assets.
</Info>

| Date | Asset | Incident | Impact | Resolution |
| ---- | ----- | -------- | ------ | ---------- |
| None | -     | -        | -      | -          |

*No incidents to report for currently supported assets.*

## Integration Requirements

For new RWA token issuers seeking integration:

### Technical Requirements

* [ ] ERC-20 compliant token contract
* [ ] Audited by reputable firm
* [ ] Chainlink price feed or equivalent
* [ ] On-chain liquidity > \$1M
* [ ] Bridge to Arbitrum (or native deployment)

### Legal Requirements

* [ ] Regulated entity or clear legal wrapper
* [ ] Qualified custodian for underlying
* [ ] Regular third-party attestations
* [ ] Clear redemption terms
* [ ] Insurance coverage documentation

### Operational Requirements

* [ ] 6+ months operating history
* [ ] No material incidents
* [ ] Responsive team for integration
* [ ] Public documentation

<Card title="Partner With Us" icon="handshake" href="mailto:partnerships@centuari.io">
  RWA token issuers interested in integration can contact our partnerships team
</Card>