Understanding Your Basket
When you deposit into ToneFinance, you’re investing in a basket of AI-focused cryptocurrency tokens. Here’s what you own.
The AI Sector Basket
Your sector tokens represent a basket of AI-focused tokens:
| Token | Symbol | What It Is |
|---|---|---|
| 0X | 0X | Protocol token for decentralized exchange |
| Arkham | ARKM | Blockchain intelligence platform |
| Fetch.ai | FET | AI agents and machine learning on blockchain |
| Kaito | KAITO | AI-powered research platform for crypto |
| NEAR | NEAR | Layer 1 blockchain with sharding |
| Numbers Protocol | NOS | Data ownership and AI platform |
| PAL AI | PAAL | AI-powered automation platform |
| Render | RENDER | Decentralized GPU rendering network |
| Bittensor | TAO | Decentralized machine learning network |
| Virtual | VIRTUAL | AI agent infrastructure |
Basket Distribution
Your sector tokens are distributed across all tokens in the basket. Check the app to see the current weight of each token. This means:
- Your investment is diversified across multiple tokens
- If one token goes up or down, others may balance it out
- Your basket allocation may be rebalanced over time
How Your Tokens Are Backed
This is important: Every sector token you own is fully backed 1:1 by real underlying assets in the vault.
Here’s how it works:
- You deposit USDC → Creates a pending deposit
- Fulfillment engine acquires underlying tokens → Uses your USDC to buy AI tokens
- Those tokens go into the vault → They’re now the vault’s holdings
- Sector tokens are minted → Only after underlying tokens arrive, your sector tokens are created
This means your sector tokens are not IOUs or promises—they’re backed by real tokens sitting in the vault. Your sector tokens represent your proportional share of all the underlying assets.
How Pricing Works
ToneFinance uses fair market prices from oracles (price feeds) to determine:
- How many sector tokens you receive when you deposit
- How much USDC you get back when you withdraw
This means:
- You always pay current market rates
- No hidden fees or discounts
- Everyone gets the same fair price
- Your backing ratio stays constant (1 sector token = your proportional share of vault)
Why a Sector?
Instead of picking individual AI tokens, you’re diversified across multiple tokens. This means:
- Lower risk: If one token drops, others may go up
- Exposure: You benefit from the entire AI sector’s growth
- Simplicity: One token tracks multiple assets
What Happens to Your Basket
As market prices change:
- Token values fluctuate naturally
- Your total basket value changes
- You can withdraw anytime to get your current value
When you withdraw, you get the underlying tokens back (not USDC on testnet). See How to Withdraw for details.
Coming on Mainnet
On the live network, when you withdraw you’ll have a choice:
- Get the underlying tokens back, OR
- Get USDC instead
This gives you flexibility in what you do with your returns.