Frequently Asked Questions

Common questions about RAVA settlement values, overnight repo markets, and protocol integration.

General Questions

What is RAVA?

RAVA is the settlement layer for tokenized assets without continuous market pricing. It transforms NAV into settlement values using transparent models that protocols can trust and verify.

Why do tokenized assets need a settlement layer?

Traditional lenders use private internal models to determine what value they would actually recover if a borrower defaults. These models are hidden. RAVA makes this settlement logic public, enabling composable credit markets for tokenized assets.

Is RAVA a lending protocol?

No. RAVA is valuation infrastructure. Lending protocols integrate RAVA settlement values the same way they integrate price oracles for liquid assets.

Is RAVA live?

RAVA is currently in development. Launch timeline will be announced as the protocol completes development and security reviews.

Settlement Value Questions

What is a settlement value?

Settlement value is what a lender would actually recover if a borrower defaults. It is always more conservative than NAV because it reflects real liquidation dynamics, not accounting marks.

How is settlement value calculated?

V_settlement(t) = NAV(t) × (1 − A(t))

Where A(t) is the adjustment factor based on market conditions, appraisal lags, illiquidity, and verified risk data.

How often do settlement values update?

Continuously. As credit spreads, interest rates, or other market signals change, adjustment factors update and settlement values respond in real time.

Why not just use NAV?

NAV is an accounting concept designed for quarterly reporting. It is smoothed, lagged, and not designed for credit decisions. Settlement values reflect what positions would actually recover under stress.

Can settlement values be manipulated?

Settlement values use multiple public market sources with outlier detection. Private data uses encrypted attestations that can be verified but not faked. No single party can manipulate settlement values.

Overnight Repo Questions

What are overnight repo markets?

Overnight repo markets adjust lending terms daily based on current settlement values and market conditions. Repo rates, haircuts, and margin requirements reprice every day.

Why daily instead of monthly or quarterly?

Continuous repricing eliminates dangerous lags. If market conditions deteriorate, lenders adjust terms immediately instead of waiting weeks or months. This prevents hidden leverage buildup.

How do repo rates get set?

Repo_Rate(t) = Risk_Free_Rate(t) + Credit_Spread(t) + Funding_Spread(t)

All three components are observable. No hidden pricing or discretionary markups.

What happens if I cannot meet a margin call?

If settlement value drops and you cannot add collateral or repay debt, the protocol liquidates your position at the current settlement value minus a liquidation penalty.

Can I lock in longer term rates?

Future versions may offer term repo with fixed rates for 30, 60, or 90 days. Initial version focuses on overnight markets.

Protocol Integration Questions

Which protocols can integrate RAVA?

Any lending protocol, asset manager, or treasury system. RAVA provides standard oracle interfaces compatible with leading protocols.

How does integration work?

Protocols call RAVA oracle with an asset identifier and receive the current settlement value. They use this value for collateral valuation, margin calls, and liquidations.

Do protocols need custom code for each asset class?

No. RAVA provides standardized settlement values for all tokenized assets. Protocols integrate once and gain access to private credit, real estate, infrastructure, and other asset classes through the same interface.

Can protocols set their own risk parameters?

Yes. RAVA provides settlement values. Protocols set their own LTV limits, liquidation thresholds, and other parameters based on their risk appetite.

What if a protocol disagrees with RAVA settlement values?

Protocols are free to use their own valuation models. But most will prefer a shared, transparent standard to fragmented custom approaches.

Privacy and Data Questions

How does RAVA verify private data without exposing it?

RAVA uses encrypted attestations. Fund managers prove facts about their portfolios (e.g., concentration limits, leverage ratios) without revealing the actual holdings. Protocols can verify the proofs cryptographically.

Who can see settlement values?

Everyone. Settlement values are published on chain and fully transparent. This is the entire point: making private settlement models public.

What NAV data does RAVA use?

RAVA consumes NAV reports from fund administrators. These are the same quarterly or monthly reports that funds already publish to investors.

Can fund managers game their NAV reports?

No more than they already can. RAVA does not increase NAV manipulation risk. It applies additional conservative adjustments on top of reported NAV to protect lenders.

Risk Questions

What are the main risks?

Oracle risk: If market data feeds fail or are manipulated, settlement values could be incorrect.

Model risk: Adjustment factors might not capture all risk dimensions perfectly.

Smart contract risk: Bugs in oracle contracts could cause incorrect values to be published.

Governance risk: Future parameter changes could be made poorly.

How does RAVA mitigate these risks?

Multiple oracle sources with outlier detection Conservative adjustments that err on the side of caution Extensive audits and formal verification where possible Gradual decentralization of governance Circuit breakers and pause mechanisms

What happens if RAVA settlement values are too conservative?

Borrowers get less leverage than they might from a more aggressive model. This is by design. Settlement values prioritize lender safety.

What happens if settlement values are too aggressive?

Lenders take more risk than intended. Liquidations might not recover full value. This is the more dangerous failure mode, which is why RAVA errs conservative.

Could RAVA cause a liquidation cascade?

Continuous repricing and transparent settlement values reduce cascade risk compared to monthly repricing with hidden models. Lenders adjust positions gradually as conditions change, not all at once during quarterly resets.

Regulatory Questions

Is RAVA regulated?

RAVA operates in a developing regulatory environment. The protocol implements geographic restrictions and compliance procedures where required by law.

Can I use RAVA from anywhere?

Access may be restricted in certain jurisdictions including the United States (pending regulatory clarity), sanctioned countries, and regions with securities restrictions. Check local laws.

Are settlement values considered securities?

RAVA publishes data, not securities. Protocols and users decide how to use that data. Regulatory classification depends on specific use cases and jurisdictions.

Technical Questions

What chains does RAVA support?

RAVA will launch on major networks with plans to expand as demand grows.

How frequently do settlement values update?

Settlement values update continuously as market conditions change, ensuring real time pricing for credit decisions.

What happens if the oracle goes offline?

Protocols using RAVA values should implement staleness checks and fallback mechanisms. RAVA targets 99.9%+ uptime with redundant infrastructure.

Economics Questions

How does RAVA make money?

RAVA charges oracle usage fees to protocols that integrate settlement values. Fee structure designed to be sustainable without rent seeking.

Is there a RAVA token?

Not yet announced. Possible future governance token, but not required for protocol operation.

Who funds RAVA development?

Initial development funded by grants and strategic investors. Long term sustainability through protocol fees.

Comparison Questions

How does RAVA compare to MakerDAO RWA vaults?

MakerDAO: Lending protocol that accepts some RWAs using manual or simple valuation methods.

RAVA: Settlement infrastructure that any protocol (including MakerDAO) could integrate for more sophisticated RWA valuation.

How does RAVA compare to Centrifuge or Goldfinch?

Centrifuge/Goldfinch: Platforms for bringing specific RWAs on chain and creating lending pools.

RAVA: Settlement layer that could value Centrifuge or Goldfinch assets, enabling them to be used as collateral across many protocols.

How does RAVA compare to NAV oracle providers?

Most NAV oracles just republish quarterly NAV reports. RAVA transforms NAV into settlement values that adjust continuously based on market conditions. Much more suitable for lending and liquidations.

Future Development Questions

What comes after settlement values?

Settlement values enable many applications: Overnight repo markets (in development) RWA derivatives and swaps Cross protocol leverage Automated treasury management Real time risk analytics

Will RAVA support prediction markets or synthetic assets?

Potentially. Settlement values provide the pricing foundation for many financial products.

How will governance work?

Progressive decentralization. Initially multisig control with time delays. Gradually transition to token based governance for parameter updates and feature additions.