8. The Role of an Underwriter
Traditional financial instruments often rely on an underwriter to assume risk or ensure regulatory compliance during issuance.
RAVA's yield swaps operate differently.
RAVA executes private, cash-settled yield swaps directly with RWA holders.
Each contract is a bilateral derivative rather than a security.
Since no ownership or fractional interest in the underlying asset is transferred, there is no need for a securities underwriter.
An underwriter would only be required if:
- The yield rights were fractionalized and offered publicly as securities.
- rFund tokens were sold as investment contracts to non-accredited investors.
- RAVA acted as an issuer rather than a swap counterparty.
RAVA's structure avoids those conditions.
It functions as a counterparty and market operator, not a distributor of securities.
All yield swaps remain commercial contracts, and all rFund tokens are cash-settled derivatives referencing a broad yield index.
This ensures compliance with derivatives regulations while avoiding the requirements associated with securities issuance.
RAVA does not issue securities, it markets performance.