> ## 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| B[On-chain registry and IXD pool]
    B -->|invest stablecoin| C[Investor holds IXD]
    C -->|compute is rented| D[Net revenue]
    D -->|"60 / 40 split, Merkle claim"| 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 market value and operator) is registered in the protocol. Its value, sector, type, and the investor/protocol ownership split are recorded, and an on-chain ownership pool is created for it.
  </Step>

  <Step title="Investment — capital in, ownership out">
    An investor connects a wallet, chooses an asset and an amount, and pays in a stablecoin (USDT or USDC). The protocol's investment contract takes the payment and transfers **IXD** ownership tokens to the investor, sized to their stake.
  </Step>

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

  <Step title="Distribution — revenue reaches owners">
    Net revenue is split between investors and the protocol and distributed on-chain to token holders, pro-rata to ownership.
  </Step>

  <Step title="Transparency — verify at every step">
    Holdings, NAV, reserve coverage, and distributions 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 BNB Smart Chain 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 investment contract to spend your chosen stablecoin.
  </Step>

  <Step title="Invest">
    You call `invest(amount, paymentToken)`. The contract transfers your stablecoin to the asset treasury and sends you IXD from the asset's ownership pool.
  </Step>

  <Step title="Confirm">
    The investment is confirmed from the on-chain transaction — the amount and ownership recorded are read from the blockchain, not from the browser.
  </Step>
</Steps>

```mermaid theme={null}
sequenceDiagram
    actor U as Investor
    participant IM as InvestmentManager
    participant T as Treasury
    participant Pool as IXD ownership pool
    U->>IM: approve + invest(amount, paymentToken)
    IM->>T: transfer stablecoin
    Pool->>U: transfer IXD (sized to stake)
    IM-->>U: emit InvestmentMade(investor, amount, tokens)
    Note over U,IM: Ownership is recorded from the verified on-chain event
```

<Warning>
  **Design principle — the chain is the source of truth.** Ownership and payouts 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>

## Sectors and asset types

The marketplace organizes assets along two axes:

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

| Type            | Meaning                                 |
| --------------- | --------------------------------------- |
| **GPU**         | Individual accelerators or small fleets |
| **Cluster**     | Coordinated multi-GPU compute units     |
| **Data center** | Facility-level infrastructure           |

## What happens to a fully-sold asset

When an asset's ownership pool is fully allocated, it moves to a **Sold** state — still visible and still earning for its owners, but no longer open for new investment.

## 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 & the IXD token" icon="coins" href="/protocol/ownership-and-ixd">
    What IXD is, how it's priced, and what it entitles you to.
  </Card>
</CardGroup>