> 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/glossary-and-faq.md).

# Glossary & FAQ

## Glossary

| **Term**                  | **Definition**                                                                                                         |
| ------------------------- | ---------------------------------------------------------------------------------------------------------------------- |
| **tRWA Token**            | A tokenized share of a real-world asset portfolio, ERC-4626-compliant, and issued when you deposit into a Sova vault.  |
| **Vault**                 | A smart contract that accepts deposits, issues tRWA tokens, and tracks strategy performance via NAV.                   |
| **NAV (Net Asset Value)** | The value of all assets held in a vault, used to determine the redeemable value of your tRWA tokens.                   |
| **Yield Curator**         | A licensed asset manager responsible for executing the strategy, managing capital, and reporting performance.          |
| **Reporter**              | A smart contract that posts NAV and valuation updates on-chain for each strategy.                                      |
| **Hook**                  | A compliance mechanism that checks wallet behavior or eligibility before allowing deposits, withdrawals, or transfers. |
| **Conduit**               | A smart contract that securely handles all fund transfers into and out of the protocol.                                |
| **Escrow**                | A contract that temporarily holds assets during gated deposit or withdrawal processes.                                 |
| **GatedMint**             | A two-phase deposit system that requires explicit approval from a manager before capital is fully accepted.            |

***

## Frequently Asked Questions (FAQ)

### Is Sova custodial?

**No.** Sova is non-custodial on-chain - you always retain ownership of your tRWA tokens. Fiat custody and fund deployment are handled by 3rd party managers who may custody your assets, depending on the strategy. Always review provided documentation per strategy.

### How do I earn yield?

Your yield **accrues automatically** as the underlying strategy performs. The NAV of your tRWA token increases over time - there's no need to manually claim rewards.

### When can I withdraw my funds?

**RWA strategies** have defined lock-up and redemption schedules - some allow redemptions weekly; others may require 15–30 days. **DeFi vaults** typically offer **instant or near-instant withdrawals** depending on the underlying protocol. You'll see the specific terms when selecting a vault.

### Do I need to complete KYC?

**It depends on the vault type.** RWA strategies require KYC for all users before deposits can be accepted, ensuring compliance with global AML standards. **DeFi vaults are permissionless** - simply connect your wallet and start earning.

### Can I use my tRWA token in DeFi?

**Yes** - most tRWA tokens are ERC-4626 compliant. However, some may be gated or non-transferable depending on compliance hooks. Integration depends on the specific vault.

### What is the minimum deposit?

Minimums vary by vault type and strategy. **RWA vaults** typically start at **$1,000 USDC** or equivalent in BTC, while **DeFi vaults** may have lower or no minimums depending on the underlying protocol.

### Will there be a token?

TBD


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