> For the complete documentation index, see [llms.txt](https://docs.nara.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.nara.io/nara-protocol/portfolio-allocation.md). # Portfolio Allocation **NaraUSD is backed by a liquid reserve and a book of underwritten payment-financing positions, allocated under written ranges and concentration limits.** The live book, every position's amount and weight, each position's expected APR, and the Insurance Fund balance are on the [transparency dashboard](https://app.nara.io/transparency). This page adds what the dashboard does not show: how each position is structured, what its exit and first-loss terms are, and what the policy ranges are. #### How the book is built | Component | Policy range | What it holds | | ------------------------------------ | ----------------- | ------------------------------------------------------------------------------------ | | Liquid reserve | 20% to 35% of NAV | Stablecoins and on-chain savings products (currently Sky's sUSDS); meets redemptions | | Payment-financing positions | 55% to 75% of NAV | The underwritten positions listed below | | Strategic or opportunistic positions | 0% to 15% of NAV | Approved funds and structured opportunities, sized to the risk | | Insurance Fund | Policy-defined | See Insurance Fund | The target end-state is 10 to 15 positions with no single position above 15% of backing. During ramp-up the book does not yet reflect that: deposits arrive ahead of deployment, so the liquid reserve can sit above its range and the credit portfolio below it, and single positions can exceed the end-state cap. Nara's Investment Policy treats this as transitional; exposures outside the draft limits during ramp-up require Investment Committee approval and are reviewed as TVL and originator count grow. The current weights against these ranges are on the dashboard.\ \ Positions | Position | Type | Redemption terms | Structure and protection | Underwriting outcome | | ---------------------------- | ------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------- | | Fasanara mGlobal (via Midas) | Asset-backed credit: trade receivables and digital invoices across Europe, the US, Canada and Australia | 35-day standard redemption; instant route for 92.5% of the request at a 0.5% fee with a 7% holdback | Tokenized profit-participating note issued by a ring-fenced Luxembourg securitization compartment over a Fasanara sub-fund; approximately 90% fund units, 10% liquidity sleeve; monthly NAV struck by an independent administrator and attested on-chain. Unsecured note; ranks behind compartment costs. | Approved, pilot size, 19 Aug 2026 | | BlackOpal LiquidStone II | Short-dated Brazilian credit-card receivables, settled in USDT/USDC on Ethereum | Ordinary course within 5 Business Days; up to 10 Business Days after final determination; roughly 40-day full-book run-off | Participating shares in a Bahamas segregated account. Receivables are bought at a discount under true sale, title registered at CERC, and paid at face value by acquirers under the Visa/Mastercard settlement guarantee codified in BCB Resolution 522. Unsecured participating share; no seniority within the class. Investor side letter governs liquidity, reporting and NAV policy. | Approved, post-investment monitoring, 21 Aug 2026 | | Zynk | PayFi: just-in-time USDC settlement liquidity for cross-border payment companies (Solana) | 2-month minimum holding from funding, then any withdrawal settled within 30 calendar days of notice | Dedicated per-LP vault; capital drawn only against an approved client list with contracted per-client exposure limits; every draw reconciled to a settlement report with automatic suspension on mismatch; Zynk maintains a first-loss of not less than 2% of outstanding capital at a disclosed on-chain address; daily, weekly and monthly reporting; interest is contracted at a fixed annual rate and paid weekly in USDC. Unsecured claim in phase 1; migration to a bankruptcy-remote SPV with first-ranking security is contracted within two months of funding. | Approved with conditions, pilot, 19 Aug 2026; funded 11 Sep 2026 | | Savings USDS (Sky) | Liquid sleeve | Instant | On-chain savings rate | Liquid reserve | Expected APR per position is a target figure: the manager's stated target or the borrower's contracted rate, gross of Nara's 10% Insurance Fund share. It is shown on the [dashboard](https://app.nara.io/transparency) next to the realized figures, and it is not a return anyone is promised. #### What the positions have in common * Every position cleared the 7 knock-out gates and was scored on the 42-criteria scorecard before funding, and is re-scored on any trigger. See Underwriting. * Every position has a written exit: a contractual redemption or withdrawal term that Nara can exercise without the counterparty's consent. The longest, mGlobal's 35-day standard route and Zynk's 30-day notice after the minimum holding period, set the worst-case timing for queued redemptions. No exit right has been exercised to date. * Every position reports to Nara at least monthly; Zynk reports daily. Position-level reporting is reconciled by Nara and summarized in the 7-day portfolio report. It is not independently attested today. #### Diversification behind the positions The three credit positions are exposures to many underlying obligors rather than three loans. Fasanara's strategy holds more than 700,000 open positions across 130+ originators and 60+ countries, with an average position of 0.01 bps of NAV. LiquidStone II's receivables are paid by card acquirers under a network guarantee rather than by the merchants. Zynk's facility funds settlement for licensed, venture-backed payment companies against a $290 million, 22,687-draw track record with no realized losses to date, as reported by Zynk. Track records are the managers' own and predate Nara's participation; they are not Nara's results. #### What changes this page Allocations move with deposits, redemptions, borrower utilization, returns and Investment Committee decisions. Any breach of an allocation or concentration limit, passive or active, is recorded with a remediation plan and summarized in the transparency reports. New positions are announced here and on the dashboard when funded, not before. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. 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