6. ABDT Distribution to Lenders

ABDT represent structured real estate-backed debt, ensuring stable, risk-adjusted returns for lenders while maintaining capital efficiency. The issuance and distribution of ABDT follow a structured financial framework to optimize liquidity, risk mitigation, and transparency.

Initial ABDT Issuance

• Investors in ABD receive 100% of their ABDT at loan issuance, representing their share of the structured real estate-backed debt.

• These ABDT represent a portion of the property value, corresponding to the mortgage loan amount, which typically accounts for around 80% of the total asset value, depending on the project's LTV.

• ABST holders do not receive progressive unlocks like REBT holders; rather, they hold a tradable debt instrument that accrues principal and interest payments over time.

Debt Amortization & Periodic Payouts

• The loan follows an amortizing structure, meaning each payment reduces the outstanding principal while covering interest payments.

• Lenders receive stable returns, proportionate to their tranche’s risk exposure.

• Tokenized debt enables continuous liquidity, as ABDT holders can trade their tokens on secondary markets.

The periodic distribution of principal and interest for ABST holders is determined by:

$$P_{periodic} = \frac{P_{total}}{N}$$

$$I_{periodic} = P_{remaining} \times r$$

Where:

• $P_{total}$ = Total loan principal.

• $P_{remaining}$= Remaining loan principal at each period.

• $N$ = Total number of payment periods.

• $n$ = Fixed interest rate per period.

• $P_{periodic}$ = Principal repaid per period.

• $I_{periodic}$​ = Interest paid per period.

The cumulative repaid principal and interest at any period n are given by:

$$P_{cumulative} = n \times P_{periodic}$$

$$P_{cumulative} = \sum_{k=1}^{n} I_{periodic}(k)$$

Liquidity & Trading of ABDT

• Secondary Market Trading: ABDT tokens can be traded on DeFi platforms, allowing investors to exit early without waiting for loan maturity.

• Collateral Utility: ABDT tokens can be used as collateral in DeFi lending protocols, unlocking additional capital efficiency.

• Variable Compononant of the Yield: The additional yield paid in $TULIP is dynamically adjusted based on market conditions. This extra reward enhances returns for investors and incentivizes long-term participation in the ecosystem.