> ## Documentation Index > Fetch the complete documentation index at: https://docs.arco.financial/llms.txt > Use this file to discover all available pages before exploring further. # Terms and Risks Mainnet product guide draft · English v1.0 · 7 October 2026 [Docs Home](/index) ARCO vault products connect assets and strategies to product-specific token, pricing, deposit and redemption flows. This page is a draft of the terms for mainnet products, covering user rights, participation, transfers and redemptions, and the responsibilities of each party. Contracting parties and jurisdictions, eligible users and regions, rights and custody structures, and redemption, fee and loss conditions are defined in product-specific term sheets and terms of use. Statements about custody, guarantees or authorizations are based on the relevant party's original documents and supporting evidence. The common explanations in this guide are read alongside each product's confirmed terms. The actual ARCO contracting entities, product-specific original documents and custody evidence require product-specific confirmation and supporting links. [Onboarding and Due Diligence](/resources/onboarding-and-due-diligence) sets out institutional review scope, material status and the KYB and contracting process. ## ProductToken and User Rights GIWA ProductToken records product-specific onchain holding quantities and transfers. A vault receives payment assets and issues ProductToken, or burns tokens on redemption and proceeds with payout processing. The rights represented by holding ProductToken depend on the product's contractual structure. Product documents specify the party against which holders have claims, the allocation of returns and losses, and the relationship between the authoritative record and GIWA balances. Where an externally issued product is used, the documents explain whether holders directly hold external tokens or fund interests, or participate in performance and repayment through a separate product contract. The relationship between ProductToken quantities and contractual rights is defined for each product. Where an externally issued product is used, the relationship to the records of the external token or underlying product is also specified. Token quantities and names alone should not be interpreted as conferring direct ownership of assets. Both technically possible transfers and the conditions for transferring contractual rights must be considered. In requested redemptions, the burn and actual payout may occur at different times. Product terms must cover the user's claim while awaiting payment after a burn, request records and the criteria for completed payout. ## Product Rights and Regulatory Scope | Product family | Matters to specify in the product contract | | - | - | | [ArcoUSD](/products/arcousd) | Exchange of supported assets on a 1:1 basis, reserves and the party against which holders have claims, fees, withdrawals and price deviation conditions | | [Savings](/products/savings) | Performance, losses and costs for sarcoUSD or asset-specific product tokens, allocations, redemption assets and rights | | [Funds](/products/funds) | arcoUSD burns and reserve settlement, rights attached to the product received, external issuance, management and custody structures, and claims for incomplete purchases | Funds are structured around RWAs that fit the applicable regulatory frameworks and business scope of the relevant issuers and distributors, including those in the United States, Singapore and Hong Kong. An external party's license applies to that party, jurisdiction and business activity. ARCO's role and user participation conditions are specified separately in the product contract. ArcoUSD's 1:1 basis is a redemption policy under normal exchange conditions. Reserve composition and the scope of legal guarantees, custody and claims are explained through their respective contractual terms. Holding ordinary arcoUSD and participating in yield through Savings have distinct rights and fee conditions. ## Issuance Distribution Management and Custody Partners confirm the parties responsible for applicable activities, including vault operations, asset or strategy management, custody and settlement, and liquidity provision. Where an externally issued product is connected, issuance and distribution roles are included. Even where one party performs several roles, each activity and responsibility is distinguished. | Role | Responsibilities to define for the product | | - | - | | ARCO | Vault, app and API operations, permissions, price publication, request processing, records and user support | | Asset or strategy manager | Fund allocation and recovery, strategy execution, valuation materials, and reporting of performance, losses and withdrawal constraints | | Custody and settlement provider | Title, holdings, movements and segregation of applicable assets, and reconciliation, payout and return procedures | | Liquidity or app partner | Agreed liquidity provision, or user interfaces, access policies and support scope | | External issuer or distributor | Where an externally issued product is used, issuance rights, authoritative records, repayment obligations, onboarding and the scope of the connection | Each party's rights and obligations depend on the scope of the product contract. For products connected to external partners, issuance, distribution, management and custody roles are established from official materials and contracts. A cooperation announcement or product introduction alone does not establish that a particular party is an issuer, custodian or guarantor. The product's fund flow covers user deposits, allocation to assets or strategies, recovery, settlement and payout. The scope of administrator fund movements, asset title, custody, segregation and return responsibilities is linked to applicable contracts and account or wallet records. The scope of transactions users sign from their own wallets is also distinguished from the scope of assets managed by operating parties. ## Eligibility and Token Transfers Participation conditions include eligible users, permitted regions and onboarding procedures for each product. Product terms identify the parties responsible for required KYC, legal entity verification, sanctions checks, wallet registration, renewals and exception handling. Where an externally issued product is connected, the terms also define how its participation conditions and ARCO service access conditions apply together. A product's app listing or planned onboarding status is separate from a user's approval to participate. Deposits and redemptions follow confirmation of transaction availability and participation approval procedures. ProductToken address allowlisting and blocking are tools for applying these policies; they do not replace identity verification or legal eligibility assessment. Transfer conditions cover permitted recipients, recipient verification, address restrictions and procedures for transferring contractual rights. Product terms also address redemption and support procedures when wallets or addresses change, access is restricted or sanctions-related measures apply. ## Returns Redemptions and Fees Product returns and losses reflect the performance and costs of the connected assets or strategy. NAV and APY are explained with their calculation basis and observation period, and valuation measures for assets or strategies are distinguished from measures of vault deposits. Any guarantee of future returns, principal or payment is described only where it is expressly included in the product contract, with its scope and responsible party. Standard Redemption follows the product's asset recovery, settlement and price fixing conditions. Instant Redemption uses liquidity and execution conditions from the internal sleeve or OTC Network and applies a redemption fee. Token transfers in acquisition transactions are distinguished from redemptions involving burns, and user payouts from subsequent partner settlement. See [Vault Liquidity Architecture](/liquidity/architecture) for the detailed routes. Users should confirm the calculation basis, charging time and party bearing applicable deposit, redemption, management and other costs. Where an externally issued product is used, its fees and distribution policy, and how these apply to the ARCO product, are also specified in the term sheet. Partner allocations are defined in the relevant contract; product interfaces display the applicable conditions. ## Key Risks and Operating Conditions | Risk | Matters to address in the terms | | - | - | | Asset and management losses | Market, counterparty and strategy risks, declines in value and allocation of losses | | Liquidity and payout delays | Asset recovery constraints, pending payouts, processing restrictions and subsequent settlement | | Valuation and pricing | Valuation timing, data, error handling and price application | | Custody and settlement | Asset holdings, segregation and return, and treatment of provider disruption or financial distress | | Technology and administrative permissions | Contract, network, wallet and API failures, exercise of permissions and implementation changes | | Access and transfer restrictions | Participation policies, address restrictions and the effects of related measures on transactions and redemptions | Product-specific strategies add the risks particular to their assets. Operating conditions include incident notification, user support, and procedures and responsibilities for pending payouts, suspension and termination. Permission, settlement and change standards are linked in [Security and Operations](/security/operations). ## Product Documents and Order of Precedence Product documents apply according to the rights and service relationships they address. Each document identifies the product, contracting parties, version, effective date and original document link. | Document | Scope | Identifying information to link to the original | | - | - | - | | Executed product and partner contracts | Rights and obligations of the parties, individual agreements and document precedence | Actual contracting entities, product and jurisdiction, effective date, version and original URL | | ARCO product-specific term sheets and terms | ARCO product participation, rights, pricing, redemptions, fees and risks | Party against which holders have claims, rights and authoritative records, treatment of payouts pending after burns, incomplete purchases, insolvency and termination, and applicable originals | | ARCO general terms and privacy documents | Service use, account and data processing, and common operating conditions | Service-providing entity, applicable users, document version, effective date and original URL | | External issuance and underlying product originals | Issuance, management, participation and repayment conditions where an externally issued product is used | Issuer, manager and custody provider, exact product and class, and the contractual scope connecting them to ARCO rights and settlement | | Product Docs and app explanations | Summaries of these conditions and product flows | Relevant originals, status of materials and date of the explanatory update | Product Docs and app displays summarize formal contracts and product terms. Where information differs, the original contract applicable to the rights and service relationship takes precedence. The order between product-specific documents and general terms is stated in the contract's precedence clause. External product originals apply to that external product; the extent to which they connect to ARCO conditions is defined in individual contracts. ## Related Guides * [About ARCO Vaults](/about/arco-vaults) * [Security and Operations](/security/operations) * [NAV and Returns](/transparency/nav-and-returns) This documentation is built and hosted on [Mintlify](https://mintlify.com), a developer documentation platform.