Why On-Chain

Note Systems makes note terms and settlement rules inspectable on chain. This changes how obligations are funded and executed; it does not remove market, issuer or software risk.

Two Sides of One Note

COUPON supplies USDG notional and receives conditional coupons. SHIELD escrows Stock Tokens and funds the coupon liability and notional fee. The two sides exchange assets according to the recorded series terms, rather than relying on a future discretionary payment by a note counterparty.

Inspectable Assets and Terms

The core reads token balances, feed prices and calendar rules through contract interfaces. Participants can inspect the strike, barrier, autocall level and fee rates on each series. See What Note Systems Is.

Why Fully Collateralised

fact Matched obligations are backed by escrowed USDG, Stock Tokens and SHIELD prefund. The note core has no price-triggered liquidation engine. This reduces reliance on additional funding during a live series, but ties up capital and does not eliminate token-transfer failures or contract defects. See Escrow Invariant.

Why Observations Only at Official Closes

The calendar and oracle define the effective close and qualifying price window. Intermediate observations control coupons and autocall; the final observation controls the maturity barrier test. Disruptions can delay or change resolution through the documented governance fallback. See Oracle and MarketCalendar.

Why a Token Engine with Real Cash Flows

Collected protocol fees can fund Treasury allocations and NOTE purchases under the router’s configuration. NOTE and sNOTE holders still face market, reserve, liquidity and governance risks. Fee collection does not establish a future reward rate. See NOTE and Risk Overview.

No Revenue Forecast

Future deposits, coupon payments and autocall timing are unknown. Read Fees for verified charging rules and labelled arithmetic, not projected income.