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FAQ

Is Vadium just an RWA lending market?​

No. Cash financing is one half of the design. Vadium also creates a market for borrowing actual RWA inventory against cash collateral.

Why would someone borrow an RWA?​

To hedge, take short exposure, arbitrage price differences, support market making or satisfy temporary delivery needs without permanently purchasing the asset.

Where does the cash come from?​

From stablecoin suppliers that fund the cash-financing vault.

Where does the RWA inventory come from?​

From RWA suppliers or separately financed inventory facilities. Borrower cash collateral is not assumed to create the inventory.

Can users always borrow 24/7?​

Not necessarily. The chain can remain live while new borrowing or collateral withdrawals are restricted when price or execution conditions are unreliable.

What happens if an RWA price falls sharply?​

A cash-financing position can become eligible for liquidation. The protocol sells collateral through approved execution routes to repay stablecoin debt.

What happens if a borrowed RWA rises sharply?​

An RWA-borrowing position can become unsafe. The protocol can use posted cash collateral to buy the RWA back and return it to the inventory vault.

Does Vadium create a stablecoin?​

No. The proposed MVP uses an existing stablecoin rather than issuing a protocol-native dollar.

Is the protocol live?​

No. The current documentation describes a proposed protocol and first-market design. Parameters and implementation choices remain subject to change.