Legal Terms

The wrapper legal terms define the separate instrument, holder rights, wrap and unwrap rules, transfer restrictions, notices, and risk boundaries.

Terms that must be explicit

  • Who may wrap and hold wrapper shares.
  • How wrap and unwrap instructions are submitted and completed.
  • How settlement affects unwrap value per share.
  • How transfer restrictions, pauses, and incidents are handled.
  • How corrections, notices, and dispute pathways are published.
  • That the wrapper instrument does not provide direct cash redemption.

Risk boundaries

  • Base-asset eligibility and dependency risk.
  • Wrapper contract and operational control risk.
  • Settlement timing risk and pending-unsettled exposure.
  • Transfer restriction, pause, and incident response risk.
  • Legal-term amendment and notice risk.