> ## Documentation Index
> Fetch the complete documentation index at: https://docs.ix.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# How it works

> From a real compute asset to on-chain fractional ownership, revenue, and exit — the full lifecycle.

IX RWA connects three worlds: **real infrastructure** that produces revenue, an **on-chain ownership layer** that makes it fractional and transparent, and **investors and agents** who allocate capital to it. This page is the mental model that ties them together.

## At a glance

```mermaid theme={null}
flowchart LR
    A[Real compute asset] -->|onboarded as a cohort| B[On-chain registry + index weight]
    B -->|deposit stablecoin| C[Investor mints IX-CORE at NAV]
    C -->|compute is rented| D[Net revenue]
    D -->|accrues into NAV/share| C
    B -.->|verify| E[NAV and reserve coverage]
```

## The lifecycle

<Steps>
  <Step title="Onboarding — an asset becomes on-chain">
    A compute asset (say, a GPU cluster with a known value and operator) is registered with an on-chain identity and wrapped in a **cohort vault**. It enters the IX-CORE index by a published, rules-based weight.
  </Step>

  <Step title="Investment — capital in, shares out">
    An investor connects a wallet and deposits a stablecoin (USDC). The **IX-CORE vault** mints ERC-4626 shares at the current NAV-per-share — a slice of the whole index, not a single asset.
  </Step>

  <Step title="Operation — the asset earns">
    The underlying compute is rented to operators and end-users. That gross revenue, net of operator and protocol fees, is the yield the index produces.
  </Step>

  <Step title="Accrual — revenue reaches owners">
    The investor share of net revenue accrues into the vault, raising NAV-per-share for every holder at once — no claim step.
  </Step>

  <Step title="Transparency — verify at every step">
    Holdings, NAV, reserve coverage, and asset identity are all visible on-chain and surfaced in the app, so ownership and performance can be independently checked.
  </Step>
</Steps>

## Identity: your wallet is your account

There is **no signup, email, or password.** Connecting a wallet *is* your identity — public browsing is open to everyone, and connecting is only needed to invest or manage a position. The wallet layer is powered by [Privy](https://privy.io), pinned to Base Sepolia testnet.

<Note>
  Reads and writes are pinned to the protocol's active chain, so the app behaves correctly even if your wallet drifts to another network.
</Note>

## The invest flow, precisely

<Steps>
  <Step title="Approve">
    You approve the IX-CORE vault to spend your USDC.
  </Step>

  <Step title="Deposit">
    You call `deposit(amount)`. The vault takes your USDC and mints IX-CORE shares to you at the current NAV-per-share.
  </Step>

  <Step title="Confirm">
    The position is confirmed from the on-chain transaction — shares and value are read from the blockchain, not from the browser.
  </Step>
</Steps>

```mermaid theme={null}
sequenceDiagram
    actor U as Investor
    participant V as IX-CORE vault (ERC-4626)
    participant N as NAV Oracle
    U->>V: approve + deposit(amount)
    N->>V: NAV-per-share
    V->>U: mint IX-CORE shares at NAV
    V-->>U: emit Deposit(owner, assets, shares)
    Note over U,V: Position is recorded from the verified on-chain event
```

<Warning>
  **Design principle — the chain is the source of truth.** Ownership and value are derived from verified on-chain events, not from client-submitted figures. This is a hard requirement before any real value moves on mainnet.
</Warning>

## What's in the index

At launch, IX-CORE is \~100% the **compute sleeve** (shown as a live weight). The index is designed to admit more sectors over time, each entering by a rules-based weight:

| Sector                          | Examples                                              |
| ------------------------------- | ----------------------------------------------------- |
| **AI Infrastructure**\*(live)\* | GPU clusters, accelerator fleets, data-center compute |
| **Energy**\*(planned)\*         | Solar, wind, and battery storage that power compute   |
| **Real Estate**\*(planned)\*    | Data-center campuses and industrial facilities        |

## Exit

You exit by **redeeming IX-CORE at NAV** — the vault burns your shares and returns value, drained from the smoothing/redemption buffer. A secondary AMM market is deferred to pre-mainnet.

## Where to go next

<CardGroup cols={2}>
  <Card title="Architecture" icon="sitemap" href="/protocol/architecture">
    The contracts and how they fit together.
  </Card>

  <Card title="Ownership & IX-CORE" icon="coins" href="/protocol/ownership-and-ixd">
    What IX-CORE is, how it's priced, and what it entitles you to.
  </Card>
</CardGroup>