> For the complete documentation index, see [llms.txt](https://cicada-finance.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://cicada-finance.gitbook.io/docs/assets/rtbtc/faq-rtbtc-and-wrtbtc.md). # FAQ (rtBTC & wrtBTC) ### 1) What is rtBTC? rtBTC is a BTCB-linked asset issued by CICADA Finance. It represents a tokenised unit of participation in an underlying BTCB-denominated asset framework and is designed to provide users with onchain exposure to BTCB, the Binance-Peg BTC asset on BNB Smart Chain. Unlike stable-value assets that target a fixed US dollar NAV, rtBTC is designed to follow the value of BTCB. As a result, the reference value of rtBTC may fluctuate with the market price of BTCB and broader Bitcoin market conditions. ### 2) What supports the value of rtBTC? rtBTC is designed to derive its value from BTCB-linked underlying asset exposure. Its value support framework may include BTCB-denominated asset backing, protocol-level risk management, custody and settlement arrangements, pricing mechanisms, and an orderly redemption process. The value of rtBTC is not designed to remain fixed at US$1.00. Instead, rtBTC should be understood as a BTCB-linked asset whose value may rise or fall with BTCB. CICADA Finance does not guarantee principal protection, BTCB peg stability, fixed returns, continuous liquidity, or any specific investment outcome. ### 3) Why should I buy rtBTC instead of simply holding BTC or BTCB? rtBTC is not designed to replace BTC or BTCB for users who only want simple spot exposure. If a user’s sole objective is to hold Bitcoin passively, directly holding BTC or BTCB may be a simpler option. The purpose of rtBTC is different. **rtBTC is designed for users who want BTCB-linked exposure while also participating in CICADA Finance’s BTC-denominated quantitative strategy framework.** In other words, rtBTC aims to provide exposure to BTCB price movement, while seeking to generate additional BTC-denominated returns under ordinary market conditions. This means rtBTC is not only about tracking the BTC market price. It is designed to combine: * BTCB-linked market exposure; * a risk-managed quantitative strategy framework; * potential BTC-denominated yield, with a target APY of approximately 6.2% under ordinary market conditions; * standardized subscription, redemption, settlement, and onchain product infrastructure; * potential DeFi composability through rtBTC and wrtBTC. For example, a user holding BTCB directly will generally hold the same amount of BTCB unless they trade or use it elsewhere. A user holding rtBTC, by contrast, may gain BTCB-linked exposure while also participating in a strategy designed to increase the amount of BTC-linked exposure over time, subject to strategy performance and product rules. However, rtBTC also introduces additional risks compared with simply holding BTC or BTCB. These may include strategy risk, smart contract risk, custody and operational risk, redemption and settlement risk, liquidity risk, pricing risk, and product-specific risks. Therefore, rtBTC may be more suitable for users who want BTC-linked exposure with an additional BTC-denominated yield strategy. It may not be suitable for users who prefer the simplicity, direct ownership, and immediate liquidity of holding BTC or BTCB directly. CICADA Finance does not guarantee principal protection, fixed returns, BTCB peg stability, continuous liquidity, or any specific investment outcome. ### 4) How is rtBTC different from rtUSQ? rtUSQ is designed as a QuantFi yield-bearing asset with a US dollar-denominated reference framework and NAV targeted at US$1.00, subject to product rules and market conditions. rtBTC, by contrast, is designed to follow BTCB. Its value is linked to BTCB rather than a fixed US dollar NAV. Therefore, users holding rtBTC are exposed to BTCB price movement and broader Bitcoin market volatility. In simple terms: * rtUSQ is a US dollar-denominated QuantFi yield-bearing asset. * rtBTC is a BTCB-linked asset. * rtUSQ is designed around a US$1.00 reference value. * rtBTC is designed around BTCB-linked value. ### 5) What is wrtBTC? wrtBTC is the wrapped version of rtBTC. It is designed to provide a non-rebasing, DeFi-compatible representation of rtBTC. When users wrap rtBTC into wrtBTC, they deposit rtBTC into the wrapper contract and receive wrtBTC shares in return. These wrtBTC shares represent a proportional claim on the rtBTC held by the wrapper. wrtBTC does not represent a separate underlying asset pool. It is a wrapper around rtBTC. ### 6) What is the difference between rtBTC and wrtBTC? rtBTC is the underlying BTCB-linked asset. wrtBTC is the wrapped version of rtBTC. The key difference is how value is reflected: * rtBTC directly represents participation in the BTCB-linked asset framework. * wrtBTC represents a share-based claim on rtBTC held inside the wrapper contract. * rtBTC may involve protocol-defined value adjustment, rebase, or distribution mechanisms, where applicable. * wrtBTC is designed as a non-rebasing token, with value reflected through the wrtBTC-to-rtBTC exchange rate. This makes wrtBTC more suitable for DeFi integrations, AMM pools, lending markets, collateral systems, vaults, and other protocols that prefer fixed-balance tokens. ### 7) Does wrtBTC rebase? No. wrtBTC is designed as a non-rebasing wrapped token. The user’s wrtBTC balance does not automatically increase or decrease due to rebase-style mechanisms. Instead, the value of wrtBTC is reflected through the exchange rate between wrtBTC and rtBTC. Conceptually: wrtBTC value = wrtBTC-to-rtBTC exchange rate × rtBTC BTCB-linked reference value Because rtBTC is BTCB-linked, wrtBTC is also indirectly exposed to BTCB-linked value. ### 8) How do I redeem rtBTC, and what do I receive? Users may submit redemption requests for rtBTC during the designated monthly redemption window. Redemptions are processed according to CICADA Finance’s product rules and may be settled in the corresponding underlying assets or settlement value, subject to the applicable redemption design, liquidity conditions, custody requirements, pricing rules, and settlement processing. A settlement period may apply after the redemption window closes. The underlying assets or settlement value may only become claimable after the settlement period has concluded. Redemptions are process-based under ordinary settlement conditions and are not unconditional guarantees. Settlement timelines may be extended due to custody, liquidity, market volatility, compliance, technical, or operational requirements. ### 9) Can I redeem wrtBTC directly into BTCB? wrtBTC is a wrapper around rtBTC. Users who hold wrtBTC generally need to unwrap wrtBTC into rtBTC first. After unwrapping, any further redemption from rtBTC into the applicable underlying asset or settlement value remains subject to rtBTC’s redemption rules, including redemption windows, settlement periods, liquidity conditions, and protocol-defined processes. wrtBTC does not provide an independent guarantee of instant redemption into BTCB or any other asset. ### 10) Can I trade rtBTC or wrtBTC on the secondary market at any time? An AMM liquidity pool may be available for rtBTC and/or wrtBTC on supported trading platforms, enabling users to buy or sell without waiting for scheduled redemption windows. However, secondary market trading is subject to market liquidity and execution risk. Due to limited onchain depth, material-sized trades may experience slippage, and market prices may deviate above or below the indicative BTCB-linked reference value. Users assume all risks when trading rtBTC or wrtBTC through AMMs or other secondary market venues. ### 11) Is the swap pool suitable for large-size transactions? At the initial stage of CICADA Finance, AMM liquidity pools are intended primarily for retail-sized liquidity. For large or institutional-sized transactions, users should carefully consider slippage, pool depth, execution price, and liquidity conditions. Where applicable, the official monthly redemption facility may provide a more orderly process for exiting positions, subject to redemption rules and settlement timelines. ### 12) Is rtBTC a stablecoin? No. rtBTC is not a stablecoin and does not target a fixed US dollar value. rtBTC is designed to follow BTCB-linked value. Since BTCB is linked to Bitcoin, rtBTC may fluctuate significantly with Bitcoin market movements, BTCB liquidity conditions, and broader crypto market volatility. wrtBTC is also not a stablecoin, because its value is ultimately derived from rtBTC. ### 13) What are the main risks of rtBTC and wrtBTC? Users should carefully consider the following risks before participating: * BTCB price volatility risk * BTCB peg and liquidity risk * Bitcoin market risk * smart contract risk * wrapper contract risk * oracle or pricing risk * AMM slippage and liquidity risk * redemption and settlement risk * custody and operational risk * regulatory and compliance risk * market dislocation risk CICADA Finance does not guarantee principal protection, fixed returns, continuous liquidity, instant redemption, BTCB peg stability, or any specific investment outcome.