Glossary
Glossary
Authoritative Terminology Reference
Every platform-specific term, regulatory framework, technical concept, and blockchain primitive used across the documentation suite. Module-aware terminology is annotated with (M1), (M2), or (M3) to indicate the production module (Equities, Real Estate, or CORECM) where the term applies. Cross-module terms have no annotation. Obsolete terms are listed in §13 Deprecated Terminology — they must never appear in any current document.
This glossary is the single authoritative source across the documentation suite. When in doubt, check here first.
Table of Contents
Platform and Architecture
Token Classes
Security Controls
On-Chain Programs and Accounts
Regulatory Framework
Compliance and Verification
Trading and Liquidity
Oracle Network
Blockchain and Solana
Key Management and Governance
Audit and Formal Verification
People and Entities
Deprecated Terminology
1. Platform and Architecture
Groovy Company, Inc. — Wyoming Corporation, CIK 1499275, OTC: GROO. Principal office 600 W Peachtree St NW, Suite 1700, Atlanta, GA 30308. Wyoming domicile. Operating entity for the RWA Tokens platform. There is no dba.
RWA Tokens — The platform brand. The institutional infrastructure operated by Groovy Company, Inc. for tokenizing real-world assets across three production modules — Module 1 (Equities), Module 2 (Real Estate), and Module 3 (CORECM). The platform website is rwatokens.net.
Three-Module Architecture — The platform's three production modules:
Module 1 — Equities. Tokenization of equity securities from OTC microcap, NASDAQ, AMEX, TSX, and all global exchanges. Backing instrument: Common Class B shares.
Module 2 — Real Estate. Tokenization of real property assets through single-asset entities. Backing instrument: SAE equity. NAV oracle and 22% deviation tolerance enforced at the protocol layer.
Module 3 — CORECM. Carbon Ore, Rare Earth, and Critical Minerals — tokenization of US strategic minerals supply chain. Backing instrument: BAE equity. Classification oracle and federal-action freeze enforced at the protocol layer.
Nine-Layer Architecture — The platform's complete technology stack: Layer 1 (Solana Foundation), Layer 2 (Transfer Hook Security Enforcement — 42 controls plus module-aware extensions), Layer 3 (Global Unified CEDEX Liquidity Pool), Layer 4 (Custom AMM Engine — CPMM), Layer 5 (CEDEX Trading Infrastructure), Layer 6 (Oracle Network), Layer 7 (Protocol Governance), Layer 8 (Wallet Infrastructure), Layer 9 (AI / IDOS Module).
Alesia Doctrine — The platform's core security philosophy: compliance enforcement at the lowest possible layer of the technology stack, making regulatory bypass structurally impossible rather than merely discouraged. Named for the Roman siege of Alesia — circumvallation (contain the threat) plus contravallation (defend against external relief). In the platform's context: liquidity containment (Global Pool, LP burned) plus bot defense (42 controls, module-aware extensions, Jito MEV protection).
CEDEX (Compliant Exchange for Digital Securities) — The platform's purpose-built trading venue at cedex.market. Combines centralized order matching (Web2 performance) with decentralized Solana settlement (Web3 finality). The exclusive venue for all ST22 secondary trading — the only exchange that preserves all 42 Transfer Hook controls plus module-aware extensions on every trade. External DEXs (Raydium, Orca, Jupiter, Meteora) disable Transfer Hook functionality.
Global Unified CEDEX Liquidity Pool — Single protocol-owned liquidity reserve shared by all ST22 issuers across all three modules. Seeded by the Groovy Security Token (STO) Reg D proceeds via the Solana Treasury and the GROO Staking Pool allocation. Deepened continuously by the 0.44% allocation from every CEDEX trade. LP tokens burned at initialization — liquidity withdrawal is mathematically impossible. Formally verified by Certora Prover invariant E.3.
Custom AMM Engine — The platform's proprietary Automated Market Maker operating against the Global Pool using a Constant Product Market Maker (CPMM) formula (x × y = k) with u128 overflow-safe arithmetic. Purpose-built because all major external DEXs disable SPL Token-2022 Transfer Hooks at swap execution. See ADR-002.
IDOS (Issuer Distress and Opportunity Score) — Composite score from the Layer 9 AI Module rating tokenization readiness across all three modules. Module-aware inputs:
Module 1. EDGAR filing health, shareholder count, trading history, OTC tier degradation, 8-K trigger events.
Module 2. REIT and county-recorder data, MLS, CMBS performance, NAV-reappraisal opportunity signal (deviation between on-chain price and most recent NAV).
Module 3. USGS Critical Minerals List status, DOE Critical Materials Strategy classification, Federal Register monitoring, federal-action exposure (treated as inverse signal — exposure reduces score).
Used to prioritize the issuer acquisition pipeline. Not a public-facing metric.
2. Token Classes
The platform has exactly three token classes. They are architecturally and legally distinct.
ST22 Digital Securities — Tokens on Solana (SPL Token-2022 with Transfer Hook extension) representing direct beneficial ownership in the underlying issuer's equity, held in irrevocable custody at Empire Stock Transfer. The asset class held in custody varies by module: Common Class B shares (M1), single-asset entity (SAE) equity (M2), or basin-asset entity (BAE) equity (M3). Classified as Category 5 Digital Securities under SEC Release No. 33-11412. Issued under Reg D (US accredited investors), Reg S (non-US investors), and Reg CF (US retail crowdfunding). All 42 Transfer Hook controls plus applicable module-aware extensions enforced on every transfer. Each ST22 token is backed 1:1 by an underlying equity unit with issuer-designated shareholder rights (voting, dividends, liquidation).
GROO Utility Token — Ecosystem utility token of Groovy Company, Inc. NOT a security, NOT an STO, NOT backed by shares. GROO provides governance voting rights, staking rewards (1.5% of all CEDEX trading fees), platform feature tiers, and Solana Treasury funding (which seeds the Global Pool). Under SEC Release No. 33-11412, classified as either Category 1 (Digital Commodity) or Category 3 (Digital Tool) — explicitly not a security. Distribution via deterministic linear bonding curve (starting at 0.000001 SOL). No pre-sale. No founder allocation. No treasury reserve. No ICO until Scale phase Dutch auction (governance-decided).
Groovy Security Token (STO) — Common Class B share offering of Groovy Company, Inc. itself. $20M Reg D raise. Proceeds seed the Global Unified CEDEX Liquidity Pool via the Solana Treasury. Distinct from ST22 Digital Securities (which represent third-party issuer equity); the Groovy Security Token represents equity in the platform operator.
Module-Specific Backing Instruments
Common Class B Shares (M1) — A class of common stock created by an issuer via Certificate of Designation, filed with the Secretary of State of the issuer's jurisdiction of incorporation. Common B shares carry full shareholder rights by operation of state law. Issuer-designated terms include voting, dividends, and liquidation participation. Deposited with Empire Stock Transfer under irrevocable, perpetual custody. Backing instrument for Module 1 (Equities) ST22 Digital Securities.
Single-Asset Entity (SAE) Equity (M2) — Equity in a single-purpose legal entity (typically a Nevada corporation following a Nevada LLC → corporation conversion) holding a specific real-property asset. The SAE is the issuer of the Module 2 ST22 token. SAE equity is deposited with Empire Stock Transfer under irrevocable, perpetual custody. Each Module 2 mint corresponds to one SAE corresponding to one underlying property.
Basin-Asset Entity (BAE) Equity (M3) — Equity in a single-purpose legal entity holding a specific mineral basin or mining concession (the basin asset). The BAE is the issuer of the Module 3 ST22 token. BAE equity is deposited with Empire Stock Transfer under irrevocable, perpetual custody. Each Module 3 mint corresponds to one BAE corresponding to one underlying basin asset.
Certificate of Designation — Corporate governance document filed with the Secretary of State of the issuer's state of incorporation (not Wyoming — Wyoming is the platform operator's governing law, not the issuer's). Specifies shareholder rights for the underlying class of equity (Common B for M1, SAE equity for M2, BAE equity for M3). A public document, verifiable by any party.
3. Security Controls
Transfer Hook — SPL Token-2022 program extension executing 42 sequential security controls plus module-aware extensions on every ST22 token transfer before allowing the transaction to complete. Operates at the Solana runtime level — cannot be disabled, bypassed, or routed around by any party, including Groovy Company, Inc. Any control failure causes atomic transaction reversion with a specific error code (6001–6042). Permanently attached at mint creation.
42 Controls — The complete set of Transfer Hook security controls, organized into eight categories: Custody Verification (CV-01 to CV-06), Investor Verification (IV-07 to IV-14), Position Limits (PL-15 to PL-19), Circuit Breakers (CB-20 to CB-23), Holding Period Enforcement (HP-24 to HP-29), Sanctions Compliance (SC-30 to SC-34), Protective Conversion (PC-35 to PC-38), and Record Keeping and Governance (RK-39 to RK-42). All execute on every transfer with no exceptions. Module-aware extensions overlay Module 2 NAV-deviation enforcement on CB-21 and Module 3 federal-action freeze coordination on REG-42.
Control CV-01 (Custody Verification) — Verifies on every transfer that circulating ST22 token supply does not exceed the custodied balance held by Empire Stock Transfer. Operates uniformly across modules; the asset class held in custody (Common Class B for M1, SAE equity for M2, BAE equity for M3) is recorded in SecurityConfig metadata. Uses Ed25519 attestation from the custody oracle. Zero-tolerance discrepancy threshold. Error 6001 (CustodyDiscrepancy).
Control HP-24 (Holding Period Lock) — Enforces holding-period regimes on every transfer attempt. Three regimes:
Reg D (US accredited investors): 6 months — Rule 144 underpinning.
Reg S (non-US investors): 12 months — Regulation S distribution compliance period.
Reg CF (US retail crowdfunding): 12 months.
Records purchase timestamp on-chain at token delivery. Rejects with Error 6024 (TokensLocked) until applicable period elapses. No administrative override. Timer cannot be shortened by governance.
Control REG-42 (Regulatory Freeze) — Emergency halt of all transfers on a specific mint or platform-wide. Authorized by Legal Counsel + 3-of-5 multi-sig. No timelock — executes immediately. Used for SEC enforcement actions, court orders, active exploits, OFAC emergency designations, or — for Module 3 — federal action under the federal-action variant.
CB-21 NAV-Deviation Variant (M2) — Module 2 extension to Circuit Breaker Control 21. In addition to the standard 2% price-impact-versus-TWAP check, Module 2 mints have a NAV-deviation tolerance (default 22%, configurable per mint). When the on-chain price deviates from the most recent NAV beyond tolerance, or when the NAV oracle is stale beyond the per-mint reappraisal cadence, transfers on the affected mint are rejected with Error 6021 (NAV variant). Returns automatically once NAV is refreshed and deviation falls within tolerance.
REG-42 Federal-Action Variant (M3) — Module 3 extension to Regulatory Freeze Control 42. When the Classification oracle reports an active federal action affecting the basin asset (e.g., Section 232 designation, DPA Title III invocation, executive-order-driven export restriction), transfers on the affected mint are automatically frozen within the platform's 60-minute SLA. Other Module 3 mints not subject to the same action remain tradeable. Trading resumes automatically when the action lifts.
Federal-Action Freeze (M3) — The automatic Control 42 application driven by Classification oracle federal-action detection. Distinguishes the platform's Module 3 product from peer tokenization platforms. SLA: detection-to-freeze ≤ 60 minutes. See Incident Response Playbook §13.
Circuit Breaker — Automated trading halt triggered by predefined market conditions. Cross-module variants: price halt (>10% move in 5 minutes → 15-minute cooldown), price impact (>2% single-trade impact vs TWAP → trade blocked, Error 6021), volume halt (>30% daily sell by single wallet → 24-hour wallet suspension), oracle failure (custody stale → all transfers halt). Module-specific variants: NAV-deviation (M2), classification-stale flagging (M3).
Protective Conversion — Controls PC-35 to PC-38. Automatic conversion of underlying equity (Common B for M1, SAE equity for M2, BAE equity for M3) to the issuer's common stock or to platform-arbitrated successor equity upon adverse events: issuer bankruptcy (PC-35), SEC enforcement or criminal indictment (PC-36), loss of Empire services (PC-37), or material breach (PC-38). Ensures investor equity claim survives issuer distress.
4. On-Chain Programs and Accounts
transfer_hook — Solana program implementing 42 security controls plus module-aware extensions. Invoked via CPI by SPL Token-2022 on every ST22 transfer. Upgrade authority: 5-of-9 multi-sig with 24-hour timelock. Controls are immutable — governance cannot weaken.
amm — Solana program implementing the CPMM trading engine. Same engine for all three modules. Upgrade authority: 5-of-9 multi-sig with 24-hour timelock.
liquidity_pool — Solana program managing the Global Unified CEDEX Liquidity Pool. Immutable — no upgrade authority. The withdrawal function does not exist in the bytecode.
governance — Solana program for on-chain proposal, voting, and execution. Module-aware parameter adjustments routed through this program. Upgrade authority: 3-of-5 multi-sig.
oracle_aggregator — Solana program aggregating and validating oracle data across all categories: Custody, OFAC, AML, TWAP, EDGAR (M1), NAV (M2), and Classification (M3). Upgrade authority: 5-of-9 multi-sig with 24-hour timelock.
SecurityConfig — On-chain account (PDA: [b"security-config", mint]) storing all 42 Transfer Hook parameters plus module-aware extension fields for a specific ST22 mint. One per mint. Created at mint initialization. Cross-module fields: max wallet percent, circuit breaker thresholds, cooldown periods, price impact limits, TWAP window, holding period configuration, module identifier. Module 2 fields: NAV deviation max bps (default 2200), NAV reappraisal max age, NAV circuit breaker enabled. Module 3 fields: classification max age, federal-action freeze enabled.
HoldingPeriodAccount — On-chain account (PDA: [b"holding-period", mint, beneficiary]) recording an individual investor's holding period for a specific ST22 token. Created at token delivery. Contains purchase timestamp, jurisdiction (US / NonUS / RegCF), regime (RegD / RegS / RegCF), holding period duration, and lock status. One per investor-mint pair.
CustodyOracle — On-chain account (PDA: [b"custody-oracle", mint]) storing Empire Stock Transfer's Ed25519 custody attestation. Module-agnostic schema. Updated every Solana block (~400ms). Contains custodied balance (asset class per module's SecurityConfig), token supply, attestation slot, signature, and discrepancy flag.
NAVOracle (M2) — On-chain account (PDA: [b"nav-oracle", mint]) storing the most recent appraised Net Asset Value for a Module 2 mint. Contains appraised NAV (USD-pegged stablecoin units), authorized appraiser identifier, appraisal timestamp, next reappraisal target, deviation tolerance (default 2200 bps / 22%), staleness threshold, Ed25519 signature, and stale flag.
ClassificationOracle (M3) — On-chain account (PDA: [b"classification-oracle", mint]) storing USGS Critical Minerals List status, DOE Critical Materials Strategy classification, Section 232 applicability, DPA Title III applicability, federal-action active flag, active action references, last refresh timestamp, staleness threshold, and stale flag.
GlobalPool — On-chain account (PDA: [b"global-pool"]) storing Global Unified CEDEX Liquidity Pool state. Global singleton. Contains SOL vault reference, LP mint reference (supply = 0), cumulative deposits, and initialization timestamp.
PDA (Program Derived Address) — Deterministic Solana account address derived from seeds and a program ID. Used for all platform state accounts. No private key — accounts are program-owned.
ExtraAccountMetaList — Token-2022 standard account enabling the Transfer Hook program to specify additional accounts it needs during hook execution. Cross-module accounts: SecurityConfig, CustodyOracle, OFACOracle, AMLOracle, HoldingPeriodAccount. Module 2 additionally references NAVOracle. Module 3 additionally references ClassificationOracle.
5. Regulatory Framework
SEC Release No. 33-11412 — Joint SEC/CFTC release (March 17, 2026) establishing the Digital Securities taxonomy. Defines five categories of crypto assets. ST22 tokens classified as Category 5 (Digital Securities). Binding federal interpretation.
January 28, 2026 Joint Staff Statement — SEC Joint Staff Statement on Tokenized Securities distinguishing Category 1 (issuer-sponsored tokenization with DLT in official records) from Category 2 (third-party sponsored with counterparty risk). The platform operates under Category 1 Model B.
Category 1 Model B — SEC's preferred architecture for compliant tokenization. Seven requirements: (1) direct issuer authorization, (2) official shareholder register, (3) regulated custody, (4) true equity backing, (5) clear ownership chain, (6) investor protection, (7) token standard compliance. The platform satisfies all seven across all three modules.
Category 5 (Digital Securities) — SEC classification for crypto assets that are financial instruments with ownership recorded on a crypto network. ST22 tokens satisfy this definition under Release No. 33-11412.
April 13, 2026 SEC Staff Statement — SEC Staff Statement on Covered User Interface Providers. Defines safe-harbor framing for compliant tokenization interfaces. The platform's CEDEX trading venue aligns with the statement's covered-interface definition.
Reg D — SEC registration exemption (17 CFR §§230.501–506) allowing private offerings to accredited investors. Used for US ST22 purchases by accredited investors. General solicitation permitted within the regulatory framework. Form D filed within 15 days of first sale. Standard phrasing is just "Reg D" — never with a 506(c) qualifier.
Reg S — SEC registration exemption (17 CFR §§230.901–905) for offshore transactions to non-US persons. Used for non-US ST22 purchases. 12-month distribution compliance period enforced by Control HP-24.
Reg CF — Regulation Crowdfunding (17 CFR §§227.100–504). Used for US retail crowdfunding ST22 issuances through a FINRA-registered funding portal partnership. 12-month holding period enforced by Control HP-24. Distinct from Reg D in investor eligibility (retail vs accredited) and offering size limits.
Rule 144 — SEC rule (17 CFR §230.144) governing resale of restricted securities. The 6-month holding period under Rule 144 is the regulatory underpinning of the Reg D holding period enforced on-chain by Transfer Hook Control HP-24.
GENIUS Act — Guiding and Establishing National Innovation for U.S. Stablecoins Act. Legislative framework for compliant stablecoin usage. The platform uses GENIUS Act-compliant stablecoins (USDC and PYUSD) for all ST22 settlement.
Form D — SEC filing (17 CFR §230.503) notifying the SEC of a Reg D offering. Filed electronically via EDGAR within 15 days of first sale. Annual amendments as required.
Module 3 Federal Frameworks (CORECM)
USGS Critical Minerals List — US Geological Survey list of mineral commodities considered critical to the United States. Reviewed every three years. Inputs to the Classification oracle for Module 3 mints.
DOE Critical Materials Strategy — US Department of Energy framework prioritizing critical materials for the energy transition. Inputs to the Classification oracle for Module 3 mints.
Section 232 — Section 232 of the Trade Expansion Act of 1962. Authorizes the President to impose tariffs or quotas on imports threatening national security. Section 232 designations affecting a Module 3 basin asset are surfaced through the Classification oracle and may trigger the federal-action freeze.
DPA Title III — Defense Production Act Title III. Authorizes incentives to expand domestic production of strategic and critical materials. DPA Title III invocations affecting a Module 3 basin asset trigger Classification oracle updates.
IRA Critical Minerals — Inflation Reduction Act critical minerals provisions. Tax credits and incentives tied to critical minerals sourcing. Surfaced through the Classification oracle.
EO 14017 — Executive Order 14017 on America's Supply Chains (February 24, 2021). Directs federal critical-minerals supply-chain policy; subsequent executive orders amend the framework. Executive-order-driven export restrictions affecting a basin asset trigger Classification oracle updates.
Energy Act of 2020 — Title VII of the Consolidated Appropriations Act, 2021. Codifies the federal critical-minerals statutory framework. Source authority for USGS Critical Minerals List.
6. Compliance and Verification
Empire Stock Transfer — SEC §17A-registered transfer agent and qualified custodian. Sole investor onboarding authority for all ST22 issuers across all three modules. Dual role: (1) holds the underlying equity (Common Class B for M1, SAE equity for M2, BAE equity for M3) in irrevocable custody; (2) performs all KYC, KYB, AML, OFAC/SDN screening, and wallet verification (KYW). Operating since 2006, serving 530+ publicly traded companies across 5 continents.
KYC (Know Your Customer) — Identity verification for individual investors. Performed by Empire Stock Transfer at onboarding. Four-pillar CIP: government-issued ID, full legal name, DOB, SSN/ITIN. Module 3 onboarding includes enhanced beneficial-ownership depth given the strategic-minerals nature of the asset class. Regulatory basis: BSA CIP (31 CFR §1020.220).
KYB (Know Your Business) — Entity verification for corporate/institutional investors. Includes entity formation documents, registration number, EIN, and Ultimate Beneficial Owner identification at ≥25% threshold. Performed by Empire Stock Transfer. Regulatory basis: FinCEN Beneficial Ownership Rule (31 CFR §1010.230).
KYW (Know Your Wallet) — Wallet verification linking a Solana wallet address to a verified identity in Empire's Master Securityholder File. Unregistered wallets cannot receive ST22 tokens.
AML (Anti-Money Laundering) — Compliance program detecting and preventing money laundering, terrorist financing, and sanctions evasion. Dual-provider: Chainalysis KYT + TRM Labs. Three-tier risk disposition: 0–30 approve, 31–70 enhanced review, 71–100 reject (Error 6006). Regulatory basis: BSA (31 U.S.C. §5311), 31 CFR Part 1010.
OFAC / SDN — Office of Foreign Assets Control / Specially Designated Nationals list. Three-layer screening on every transfer: Layer 1 (exact wallet address), Layer 2 (fuzzy entity name), Layer 3 (2-hop graph clustering). Refreshed hourly + emergency push. Stale >48h halts all transfers. Regulatory basis: 50 Fed. Reg. 5342, Executive Orders.
Accredited Investor — SEC-defined investor (Rule 501): individual income $200K+/$300K joint in each of 2 most recent years, OR net worth $1M+ excluding primary residence, OR professional certification (Series 7/65/82), OR entity with $5M+ assets. Verified by Empire Stock Transfer. Required for Reg D investors; not required for Reg S or Reg CF.
Master Securityholder File (MSF) — Empire Stock Transfer's authoritative, legally binding record of all underlying-equity ownership across all three modules. The official shareholder register for all ST22-backed securities. Updated via UCC Article 8 entitlement orders on every ST22 transfer.
BSA (Bank Secrecy Act) — Federal anti-money laundering legislation (31 U.S.C. §5311 et seq.). Requires: CIP, CDD, beneficial ownership, transaction monitoring, SAR/CTR filing, recordkeeping, independent testing, compliance officer, and training.
SAR (Suspicious Activity Report) — Filing with FinCEN for transactions ≥$5,000 meeting BSA suspicious activity criteria. Empire Stock Transfer files SARs. Confidential — not disclosed to the subject. Regulatory basis: 31 CFR §1010.320.
CTR (Currency Transaction Report) — Filing for fiat on-ramp transactions ≥$10,000. Regulatory basis: 31 CFR §1010.311.
7. Trading and Liquidity
CPMM (Constant Product Market Maker) — Mathematical trading formula: x × y = k, where x = SOL reserve, y = ST22 reserve, k = constant product invariant. Same formula across all three modules. Fee (5%) applied before invariant calculation, ensuring k only increases. All intermediate calculations use u128 arithmetic to prevent overflow.
Slippage — Difference between expected and actual trade price. Configurable per order (default 1%, max 5%). If output falls below minimum after slippage, the trade reverts with Error 7002 (SlippageExceeded).
Price Impact — Price movement caused by a single trade. Transfer Hook Control CB-21 blocks any trade causing >2% impact versus TWAP. For Module 2 mints, the NAV-deviation variant additionally blocks trades causing the on-chain price to exceed NAV by more than the configured tolerance. Measured in basis points (bps).
TWAP (Time-Weighted Average Price) — Rolling average price calculated across a configurable window (default: 30 minutes) with minimum 60 observations. Used as the reference for circuit breaker calculations across all modules. 3σ outlier rejection prevents single-block manipulation.
NAV-Deviation Tolerance (M2) — Per-mint configuration setting on Module 2 SecurityConfig. Default 2200 bps (22%). Maximum permitted deviation between the on-chain price and the most recent NAV before transfers are blocked under the CB-21 NAV variant.
NAV Reappraisal Cadence (M2) — Per-mint configuration setting on Module 2 SecurityConfig (nav_reappraisal_max_age_secs). The maximum permitted time since the last NAV update before the NAV oracle is considered stale. Per-mint cadence is established by tripartite concurrence (issuer + appraiser + Empire Stock Transfer).
Basis Points (bps) — 1/100th of a percentage point. 100 bps = 1%. 499 bps = 4.99%. 2200 bps = 22%. Used throughout for fee configuration, wallet limits, price impact thresholds, and NAV deviation thresholds.
LP (Liquidity Provider) Token — Token representing a share of a liquidity pool. In the platform's design, LP tokens are burned at Global Pool initialization — supply is permanently zero. No LP token holder exists. No withdrawal function exists.
Fee Distribution — 5% total (500 bps) per CEDEX trade, identical across all three modules: 2.00% issuer treasury (200 bps), 1.50% GROO staking pool (150 bps), 1.06% protocol operations (106 bps), 0.44% Global Pool — permanently locked (44 bps).
Jito Block Engine — Solana MEV protection infrastructure. CEDEX submits transactions to the Jito relayer for private inclusion — transactions are not visible in the public mempool until block inclusion. Prevents front-running and sandwich attacks. See ADR-010.
8. Oracle Network
Custody Attestation Oracle (1:1) — Empire Stock Transfer's cryptographic custody verification feed, updated every Solana block (~400ms). Confirms circulating ST22 supply does not exceed the custodied balance for the mint's underlying equity (Common Class B for M1, SAE equity for M2, BAE equity for M3). Ed25519 signed. Zero-tolerance discrepancy. Module-agnostic at the oracle layer.
EDGAR Oracle (M1) — Module 1 oracle relaying SEC EDGAR filing data for Equities issuers: 8-K trigger events, OTC tier degradation, Late Filer status, RPS (Risk Profile Score) input. EDGAR coverage applies only to Module 1 — Module 2 and Module 3 use different upstream data sources.
NAV Oracle (M2) — Module 2 oracle holding the most recent appraised Net Asset Value for a Module 2 mint. Updated at the per-mint reappraisal cadence by the authorized appraiser. Ed25519 signed. Powers the CB-21 NAV-deviation variant. PDA: [b"nav-oracle", mint].
Classification Oracle (M3) — Module 3 oracle holding USGS Critical Minerals List status, DOE Critical Materials Strategy classification, Section 232 applicability, DPA Title III applicability, and federal-action active flag for a Module 3 mint. Updated by the authorized Classification relay monitoring USGS, DOE, and the Federal Register. Powers the REG-42 federal-action variant with a 60-minute detection-to-freeze SLA. PDA: [b"classification-oracle", mint].
Ed25519 — NIST-standardized digital signature algorithm (EdDSA on Curve25519). Used by Empire Stock Transfer to sign custody attestation payloads, by the authorized appraiser to sign NAV updates (M2), and by the Classification relay to sign classification updates (M3). Verified natively by Solana's Ed25519 precompile (~120 CU). Replay prevention via slot + timestamp in signed payload.
Oracle Staleness — Duration since the last oracle update. Each oracle has a defined staleness threshold beyond which its data is considered unreliable. Custody: 1 slot. OFAC: 24h cache / 48h halt. AML: 6h cache. TWAP: 5 minutes. NAV (M2): per-mint cadence (default 90 days). Classification (M3): 24h refresh / federal-action SLA 60 minutes.
Byzantine Fault Tolerance (BFT) — The property that a system continues operating correctly even when some nodes provide incorrect data. The platform's oracle network requires 2-of-3 consensus for discrepancy resolution (primary Empire, backup platform node, quarterly audit).
Chainalysis KYT — Know Your Transaction. Blockchain analytics platform for AML compliance and investigation. Integrated in Transfer Hook Controls IV-11 to IV-15 for real-time risk scoring. Industry standard with widest entity coverage.
TRM Labs — Machine learning risk scoring for cryptocurrency transactions. 200+ behavioral features. Co-integrated with Chainalysis KYT as dual-provider AML. Different ML models reduce single-provider blind spots.
Pyth Network — Pull-based high-frequency price oracle on Solana. First-party data publishers (institutional market makers). Provides SOL/USD and ST22/SOL price data for TWAP calculation across all modules. Sub-second update cadence.
9. Blockchain and Solana
Solana — Layer 1 blockchain. Proof of History (PoH) + Tower BFT consensus. ~400ms block time. ~65,000 TPS theoretical. ~$0.00025 average transaction cost. Home chain for all platform programs and ST22 tokens across all three modules.
SPL Token-2022 — Solana Program Library next-generation token standard. Adds Transfer Hook, Metadata, Transfer Fee, Permanent Delegate, and Confidential Transfer extensions. The token program used for all ST22 mints. Program ID: TokenzQdBNbLqP5VEhdkAS6EPFLC1PHnBqCXEpPxuEb.
CPI (Cross-Program Invocation) — Solana mechanism for one program to call another. Token-2022 invokes the Transfer Hook via CPI on every transfer — this invocation is mandatory and cannot be skipped.
Anchor — Solana smart contract development framework by Coral. All five platform programs are built with Anchor 0.30+. Provides account serialization, instruction dispatch, PDA derivation, and IDL generation.
Compute Units (CU) — Solana's measure of on-chain computation cost. Each transaction has a CU budget. Per-module CU budgets for a complete CEDEX swap with all 42 Transfer Hook controls plus module-aware extensions: Module 1 ~800,000 CU, Module 2 ~820,000 CU, Module 3 ~830,000 CU.
Slot — Solana's unit of time for block production. One slot ≈ 400ms. Custody oracle attestation is measured in slot age — attestations older than 1 slot are considered stale.
Block Finality — The point at which a transaction is irreversible. Solana: ~13 seconds (32 confirmations). CEDEX uses confirmed for reads and finalized for settlement.
Helius — Enterprise Solana RPC infrastructure provider. The platform's primary RPC. Dedicated cluster (500+ req/sec). Enhanced WebSocket support.
Triton — Backup Solana RPC provider. Automatic failover when Helius is unavailable.
Ledger Enterprise — Institutional-grade HSM-backed key management. Used by the platform for ST22 token operations (minting, transfers) across all three modules. Multi-sig governance with hardware security modules.
10. Key Management and Governance
5-of-9 Multi-Sig — Multi-signature wallet requiring 5 of 9 geographically distributed key holders to authorize program upgrades. 24-hour timelock on all actions. Keys stored on Ledger Enterprise HSMs.
3-of-5 Multi-Sig — Multi-signature wallet for parameter adjustments and emergency actions. 48-hour timelock for parameters. No timelock for Control 42 (requires Legal Counsel authorization).
Timelock — Mandatory waiting period between authorization and execution. Parameter changes: 48 hours. Program upgrades: 24 hours. Emergency freeze (Control 42): none — immediate. Timelocked actions can be cancelled by 2-of-5 during the window.
Governance Proposal — On-chain proposal for protocol changes. Three types: ParameterAdjustment (simple majority, 48h timelock), ProgramUpgrade (66.67% supermajority, 24h timelock, Certora re-verification), EmergencyAction (3-of-5 + Legal Counsel, immediate). Module-aware parameter adjustments (Module 2 NAV bounds; Module 3 classification bounds and federal-action toggle) are scoped to their respective modules.
Tripartite Concurrence (M2) — Module 2 governance pattern requiring agreement among three parties for NAV-bound parameter changes: the SAE issuer, the authorized appraiser, and Empire Stock Transfer. Used for setting per-mint NAV reappraisal cadence and adjusting NAV deviation tolerance.
11. Audit and Formal Verification
Certora Prover — Symbolic execution and formal verification tool for smart contracts. Verifies mathematical properties hold under ALL possible execution conditions — not just tested scenarios. Six invariants verified for the platform across all three modules.
Certora Invariant E.1 — No unauthorized minting: supply cannot increase without verified Empire custody deposit and Ed25519 signature. Applies uniformly across modules.
Certora Invariant E.2 — Custody ratio: every executed transfer has verified 1:1 backing at the moment of execution. Applies uniformly across modules.
Certora Invariant E.3 — Pool non-extractability: no instruction in any platform program can reduce Global Pool balance. Withdrawal is mathematically impossible. Single shared pool across all modules.
Certora Invariant E.4 — Hook completeness: every transfer on a hook-enabled mint triggers the Transfer Hook. Rejection causes atomic revert. Verifies that module-aware extensions (Module 2 NAV-deviation, Module 3 federal-action freeze coordination) cannot be removed by program upgrade.
Certora Invariant E.5 — Fee accuracy: actual fee is within 1 lamport of expected (5% of input amount). Rounding floors (favors pool). Applies uniformly across modules.
Certora Invariant E.6 — Circuit breaker correctness: breaker activates if and only if the threshold is exceeded. No false positives or false negatives. Covers Module 2 NAV-deviation variant of CB-21.
Quantstamp — Smart contract security audit firm. Engaged for Transfer Hook and Oracle Aggregator programs.
Halborn — Penetration testing and security assessment firm. Engaged for Transfer Hook and Governance programs.
OtterSec — Smart contract audit firm. Engaged for AMM program.
12. People and Entities
Frank Yglesias — Chairman of the Board, Chief Technology Officer, and sole director, Groovy Company, Inc. Technical authority over smart contract architecture and security decisions across all three modules. Also Chairman and CEO of Pineapple Express, Inc. (PNXP), which holds 51% of Groovy Company, Inc. Contact: frank@rwatokens.net.
Patrick Mokros — Chief Operating Officer of Groovy Company, Inc., and Founder of Empire Stock Transfer. Dual role disclosed as conflict of interest given Empire's role as sole onboarding authority for the platform.
Jhony Navarro — Engineering, Groovy Company, Inc. CTO-level engineering responsibility, not a director.
Legal Counsel — Legal advisory role for the platform. Authorizes Control 42 regulatory freeze. Reviews all regulatory filings and SEC engagement.
Groovy Company, Inc. — Wyoming Corporation, CIK 1499275, OTC: GROO. Principal office 600 W Peachtree St NW, Suite 1700, Atlanta, GA 30308. Wyoming domicile. Operating entity for the RWA Tokens platform.
Empire Stock Transfer — See §6 entry. Founded by Patrick Mokros. SEC §17A-registered transfer agent and qualified custodian.
Pineapple Express, Inc. (PNXP) — Holds 51% of Groovy Company, Inc. Frank Yglesias serves as Chairman and CEO.
13. Deprecated Terminology
The following terms are obsolete and must never appear in any current document. They are listed here for historical reference and to prevent accidental reuse. No transition language ("formerly known as", "rebranded from", etc.) appears anywhere in current documentation.
OTCM Protocol (platform brand)
RWA Tokens
Platform rebranded May 1, 2026
OTCM Protocol Inc. (as platform entity)
Groovy Company, Inc.
OTCM Protocol Inc. (FL) is a separate entity Frank is evaluating
dba OTCM Protocol
Groovy Company, Inc. (no dba)
dba was cancelled May 1, 2026
@otcm-protocol/sdk
@rwatokens/sdk
SDK package renamed
OtcmClient
RwaTokensClient
SDK client class renamed
OtcmError
RwaTokensError
SDK error class renamed
common_b_balance / commonBBalance
custodied_balance / custodiedBalance
Module-agnostic field naming
otcm_transfer_hook
transfer_hook
Program crate renamed
otcm_amm
amm
Program crate renamed
otcm_liquidity_pool
liquidity_pool
Program crate renamed
otcm_governance
governance
Program crate renamed
otcm_oracle_aggregator
oracle_aggregator
Program crate renamed
Series M / Preferred Series M
Common Class B (M1) / SAE equity (M2) / BAE equity (M3)
SEC Crypto Task Force March 2026 directive
Security Meme Token (SMT)
ST22 Digital Securities (issuers) or GROO Utility Token (GROO)
Terminology fully replaced
Howey Shield
(removed entirely)
Framework obsolete. Category 1 Model B embraces Howey, does not avoid it.
OTCM Security Token / OTCM STO
Groovy Security Token (STO)
Renamed alongside platform brand
GROO STO
GROO Utility Token
GROO is a utility token, not an STO
OTCM.VIP / cedex.otcm.io
cedex.market
URL obsolete
otcm.io (platform site)
rwatokens.net
URL obsolete
frank@otcmeme.com / frank@otcm.io
frank@rwatokens.net
Email domain updated
security@otcm.io
security@rwatokens.net
Email domain updated
developers@otcm.io
developers@rwatokens.net
Email domain updated
Berj Abajian / former CEO
(removed entirely)
Terminated for Cause effective May 1, 2026
John Morgan
(removed entirely)
No longer on team
Jeff Turner / JDT Legal / CLO
Legal Counsel
Attribution retired
Pink Current
OTCID
OTC Markets Group renamed the tier
VestingConfig
HoldingPeriodAccount
Account schema replaced. Complete rewrite.
VestingLocked (Error 6024)
TokensLocked (Error 6024)
Error code retained, meaning changed
Per-issuer bonding curve / FLP
Global Unified CEDEX Liquidity Pool
Architecture changed in V6+
"illiquid OTC microcap"
Professional, capability-led framing
No distress or pity narratives. Lead with infrastructure.
"trapped shareholders"
Professional framing
Same — no broken-market narratives
Five-layer architecture
Nine-layer architecture
Layers 6–9 added
Rule 506(c) / Reg D 506(c) / any 506(c) qualifier
Reg D
Standard phrasing is just "Reg D" — never paired with 506(c)
"Empire as just a transfer agent"
Empire Stock Transfer — qualified custodian AND sole investor onboarding authority
Empire's role is broader than transfer agent alone
"OTC Microcap" as the only asset class
Three-module architecture (Equities, Real Estate, CORECM)
Platform scope is global RWA tokenization across three modules
OTCM Protocol → RWA Tokens transition language
(no transition language)
Treat the platform brand as established
Usage Notes
When uncertain about a term, check this glossary first — it is the authoritative source across all documentation.
Module-aware terms are annotated with (M1), (M2), or (M3). Cross-module terms have no annotation.
Terminology is legally load-bearing — using obsolete terms can create regulatory confusion.
Terms must be used consistently across all documents: whitepaper, wiki, SDK, API docs, legal documents, marketing, and social media.
If a term is platform-specific and not in this glossary, add it via a PR to this page.
Related Documentation
Contributing Guide — Terminology requirements for contributors (§8.3 "Always use" / "Never use" tables).
Smart Contract Reference — Module-aware program behavior with full PDA registry.
Transfer Hook Reference — Standalone reference for the 42 controls and module-aware extensions.
SDK Reference —
@rwatokens/sdkpackage,RwaTokensClientAPI, module-aware methods.Oracle Integration Guide — Custody, OFAC, AML, TWAP, EDGAR (M1), NAV (M2), Classification (M3) relay architecture.
Governance Deep Dive — Module-aware governance surface, tripartite concurrence pattern, Control 42 federal-action variant.
Tokenomics Deep Dive — GROO Utility Token bonding-curve mechanics, fee distribution, Global Pool funding.
RWA Tokens · Glossary · Groovy Company, Inc.
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