> For the complete documentation index, see [llms.txt](https://sovavault.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://sovavault.gitbook.io/docs/sova-for-users/flow-of-funds/onchain-deposit-flow.md).

# Onchain Deposit Flow

**1. Deposit to Strategy Contract**

You begin by sending BTC or USDC directly into a Sova strategy vault via your wallet.

* All assets are held in a secure smart contract
* Your deposit position is tracked on-chain and safeguarded through Sova's custody infrastructure

**2. tRWA Token Issuance**

In return, you receive **tRWA tokens**, which represent your proportional share of the fund’s Net Asset Value (NAV).

* These tokens accrue value as the underlying off-chain strategy generates yield
* The number of tokens remains constant; the redeemable value increases over time

**3. Issuer Withdrawal**

Once your deposit is confirmed, the strategy contract allows the licensed issuer to withdraw the funds into their on-chain wallet.

* This step is logged and permissioned
* Assets are prepared for conversion and offboarding

**4. Off-Ramping to TradFi**

The issuer off-ramps the funds via OTC desks or centralized exchanges (CEX), converting them into fiat.

* Fiat is then deployed into traditional financial strategies (e.g. treasuries, private credit)
* These investments are managed by an institutional Yield Curator

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