Skip to main content

Security and Trust Model

Receipt Integrity​

The FpUSD system maintains strict integrity through smart contract enforcement:

Minting Controls:
  • Only Funding contract can mint FpUSD tokens
  • Minting restricted to verified USD stablecoin deposits
  • 1:1 economic backing guaranteed by smart contract logic
Burning Controls:
  • Funding contract burns during refunds
  • Distribution contract burns during Bond Token claims
  • No arbitrary burning or manipulation possible
Transfer Restrictions:
  • FpUSD tokens are non‑transferable between users
  • Primary distributions are limited to KYC‑verified participants for regulatory compliance; see Compliance Model and Onboarding & Participation
  • Ensures receipts represent actual investment participation

Proportionality Guarantees​

Mathematical guarantees ensure fair distribution:

  • Conservation Law: Total FpUSD supply exactly matches total USD stablecoin deposits
  • Proportional Distribution: Each investor's share equals their FpUSD percentage
  • No Dilution: Late investors cannot dilute early participants
  • Exact Accounting: No rounding errors or precision loss in calculations

The receipt-based distribution system enables Bondi to support large-scale funding rounds. For information on funding success and failure scenarios, see the Issuance (Primary Market) section.