1. Purpose
This Methodology Statement explains how Assetiko calculates and presents the reference value of ADEF, the Assetiko Defense Tracker.
It describes the reference framework, scaling ratio, pricing hierarchy, supported quote unit, calculation approach, publication timing, and treatment of market data interruptions.
This document should be read together with the ADEF Product Terms, Assetiko Index Trackers Product Terms, Assetiko Index Trackers Risk Disclosure, and any ADEF-specific notices published by Assetiko.
2. Product Overview
Token: ADEF
Display Name: Assetiko Defense Tracker
Product Category: Assetiko Index Tracker
Reference Category: US-listed aerospace and defense equity methodology
Primary Quote Unit: USDV
Prime Supported Pair: ADEF / USDV
Network: XRP Ledger, unless Assetiko states otherwise
Distribution Treatment: Price-return reference unless separately changed
ADEF is designed to provide tokenized reference exposure to US-listed aerospace and defense equities through Assetiko's on-chain tracker framework.
ADEF is not an ETF, not a mutual fund, not an index fund, not a share in any company, and not direct ownership of any underlying security.
3. Methodology Objective
The objective of the ADEF methodology is to calculate a clear reference value for ADEF based on an S&P Aerospace & Defense Select Industry Reference Level, adjusted by a fixed scaling ratio selected by Assetiko.
The methodology is designed to make the tracker easier to display, quote, and trade on-chain while preserving the percentage movement relationship between ADEF and the selected reference methodology.
4. Reference Methodology
ADEF references the S&P Aerospace & Defense Select Industry reference methodology or equivalent reference framework selected by Assetiko.
The reference methodology is intended to reflect US-listed aerospace and defense equity performance through a price-return reference unless Assetiko separately publishes a different treatment.
For product documentation, the reference may be described as:
S&P Aerospace & Defense Select Industry Reference Methodology
Assetiko may update the reference source, naming convention, data provider, or methodology description where necessary for legal, operational, data, or product administration reasons.
5. Reference Value Formula
Unless Assetiko publishes a different formula in an ADEF-specific notice, the ADEF reference value is calculated as:
ADEF Reference Price = S&P Aerospace & Defense Select Industry Reference Level / Scaling Ratio
The initial scaling ratio is:
Scaling Ratio = 1,000
Therefore:
ADEF Reference Price = S&P Aerospace & Defense Select Industry Reference Level / 1,000
Example:
If the applicable reference index level is:
4,987.65
Then:
ADEF Reference Price = 44,625.7 / 1,000
ADEF Reference Price = 44.6257 USDV
For display purposes, Assetiko may round this value, for example:
4.99 USDV
The scaling ratio changes the unit price display only. It does not change the percentage exposure objective of the tracker.
6. Primary Quote Unit
ADEF is primarily quoted in USDV.
USDV refers to Valtorum USD, with public information available through Valtorum sources, including valtorum.com.
Assetiko may show ADEF values in other units for convenience, but unless expressly stated otherwise, the supported product quote unit for ADEF is USDV.
7. Prime Supported Pair
The prime supported on-chain pair for ADEF is:
ADEF / USDV
Assetiko may use the ADEF / USDV pair for product display, liquidity references, charting, market information, and primary pricing presentation.
Other pairs may exist on-chain, but they are not part of the primary ADEF methodology unless Assetiko expressly identifies them as supported in formal ADEF documentation.
8. Official Reference Value
The Official Reference Value is the ADEF value calculated under this methodology using the selected reference index level, scaling ratio, and approved pricing source hierarchy.
The Official Reference Value may be updated according to Assetiko's publication schedule, data availability, market hours, and operational requirements.
The Official Reference Value is a reference calculation. It is not a guarantee of execution price, liquidity, redemption, or trading availability.
9. Indicative Market Value
Assetiko may also display an Indicative Market Value.
Indicative values may be based on delayed data, intraday estimates, public data, licensed data, third-party data, proxy calculations, or other sources Assetiko considers appropriate.
Indicative values are provided for informational display only. They may differ from the Official Reference Value and from the actual on-chain market price.
Where shown, Assetiko may label such values as:
- Indicative
- Estimated
- Delayed
- Display-only
- Market-derived
10. On-Chain Market Price
The On-Chain Market Price is the actual price at which ADEF trades on-chain.
The on-chain price may be affected by liquidity, order book depth, AMM depth, spreads, slippage, market activity, user demand, and other trading conditions.
The on-chain market price may differ from the Official Reference Value and from any Indicative Market Value.
11. Pricing Source Hierarchy
Assetiko may use a pricing source hierarchy for ADEF.
The hierarchy may include:
1. Official or authorized reference index data 2. Licensed market-data provider 3. Recognized institutional data vendor 4. Approved secondary data provider 5. Public data source for indicative use 6. Proxy calculation where appropriate 7. Last available approved value 8. Assetiko administrator determination where required
Assetiko may change the pricing source hierarchy where a source becomes unavailable, delayed, unreliable, restricted, uneconomic, or unsuitable for product administration.
12. Data Validation
Before publishing or using a value, Assetiko may apply data validation checks.
These may include:
- Source verification
- Timestamp verification
- Market status check
- Outlier detection
- Cross-source comparison
- Data delay review
- Previous close comparison
- Currency or unit verification
- Manual review where appropriate
If data appears incomplete, delayed, inconsistent, or unreliable, Assetiko may delay publication, use a fallback source, show an indicative label, or use the latest available approved value.
13. Publication Timing
ADEF values may be published or updated according to Assetiko's operating schedule and data availability.
Updates may occur:
- During market hours
- After market close
- At scheduled intervals
- When updated reference data becomes available
- When Assetiko determines an update is appropriate
Assetiko does not guarantee continuous real-time publication.
14. Market Hours
ADEF may trade on-chain outside the normal hours of the relevant reference market or data source.
During such periods:
- The Official Reference Value may not update
- Indicative values may be delayed or estimated
- On-chain prices may move independently
- Spreads or premiums may widen
- Liquidity may vary
Users should understand that blockchain trading can occur continuously, while reference market data may not.
15. Price-Return Treatment
ADEF is designed with a price-return reference treatment unless Assetiko publishes a different ADEF-specific notice.
This means that dividend effects or similar distribution-related components reflected by the reference methodology may be incorporated into the reference calculation rather than paid separately.
Holding ADEF does not entitle the holder to separate dividends, distributions, interest, coupons, shareholder payments, or pass-through income unless expressly stated in formal ADEF terms.
16. Rounding and Decimal Display
Assetiko may round ADEF values for display purposes.
A precise calculated value may be shown with fewer decimal places on the website, charts, token pages, wallet metadata, or other interfaces.
For example:
12.3545 USDV
may be displayed as:
4.99 USDV
Rounding is for interface readability and does not create a guaranteed execution price.
17. Fallback Procedures
If a reference source, data source, or calculation input is unavailable, delayed, or unreliable, Assetiko may apply a fallback procedure.
Fallback procedures may include:
- Using a backup data source
- Using a delayed approved source
- Using the latest available approved value
- Using an approved proxy calculation
- Temporarily labeling values as indicative
- Temporarily pausing reference value publication
- Publishing a methodology notice if needed
Assetiko may determine the appropriate fallback procedure based on the circumstances.
18. Corrections and Restatements
Assetiko may correct, restate, revise, or replace an ADEF value, chart, display, or methodology output if it determines that an error, omission, delayed feed, vendor issue, technical issue, or calculation inconsistency has occurred.
Corrections may be published through the ADEF page, a methodology notice, or another Assetiko communication channel.
19. Methodology Changes
Assetiko may amend this Methodology Statement from time to time.
Methodology changes may include updates to:
- Reference source
- Data provider
- Scaling ratio
- Pricing source hierarchy
- Publication schedule
- Rounding rules
- Fallback procedures
- Display conventions
- Quote unit
- Methodology descriptions
Where Assetiko considers a change material, it may publish a notice or update the ADEF documentation.
20. Product Administrator
Assetiko acts as the product administrator for ADEF unless it appoints another administrator.
The product administrator may:
- Interpret this methodology
- Select data sources
- Apply fallback procedures
- Validate data
- Publish values
- Correct displays
- Update methodology wording
- Maintain ADEF product documentation
Administrator determinations are made for product administration purposes and are subject to applicable ADEF Product Terms.
21. No Redemption Methodology
This Methodology Statement describes how ADEF reference values are calculated and displayed.
It does not create any redemption right.
Unless expressly stated in ADEF Product Terms or another formal ADEF document, ADEF is not redeemable for USDV, XRP, cash, securities, index components, or any other asset.
A reference value is not a redemption value.
22. No Investment Advice
This Methodology Statement is not investment advice, financial advice, legal advice, tax advice, or a recommendation.
No formula, chart, reference value, methodology description, or displayed value should be interpreted as a recommendation to buy, sell, hold, transfer, trade, or provide liquidity for ADEF.
23. Final Statement
The ADEF methodology is designed to provide a structured reference framework for the Assetiko Defense Tracker.
The methodology defines how ADEF values are calculated and displayed, but it does not guarantee tracking accuracy, liquidity, redemption, price stability, market support, or execution at any displayed value.