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WTI Crude Oil (WTIC)

WTIC tokens provide exposure to West Texas Intermediate (WTI) crude oil, the primary North American crude oil benchmark. Hold tokens for commodity exposure or use them for hedging - with zero carry cost.

Token Units

Tokens = Barrels

WTIC tokens are denominated in barrels, matching standard crude oil trading:

  • 1 WTIC = 1 barrel of WTI crude oil
  • Priced in USD per barrel

Custody Backing = MMBTU

The underlying Volumetric Energy Receipts (VERs) are denominated in MMBTU (energy content):

  • 1 barrel WTI = 5.8 MMBTU in custody
  • MMBTU allows different crude grades to back the same token
  • Enables future cross-commodity products (Brent, Dubai, natural gas)

Why WTI?

WTI was chosen as the initial Energy Substantiation benchmark because:

  • Most liquid — Highest traded volume of any commodity futures
  • Transparent pricing — Continuous price discovery on regulated exchange
  • Real infrastructure — Backed by physical storage and pipeline network
  • Global recognition — Standard benchmark for North American crude

Reference Price

The Reference Price is determined by reference to the CL1 front-month WTI crude oil futures contract. To mitigate pricing effects around contract expiration, the Reference Price transitions as follows:

  • Trading day immediately preceding CL1 expiration: Reference Price is the arithmetic average of CL1 and CL2.
  • CL1 expiration date: Reference Price is based solely on CL2.
  • Day after CL1 expiration: CL2 has become the new front-month contract, and the Reference Price reverts to using CL1 (the new front month) for all subsequent days until the next expiration cycle.

This two-day transition window smooths the price discontinuity that can otherwise occur when the front-month contract rolls.

Fee Structure

  • Minting fee: 0.10% of USD amount when purchasing tokens
  • Burning fee: 0.25% of USD amount when exiting via cash settlement
  • Elevated burn fee on expiration-transition days: On the trading day immediately preceding CL1 expiration and on the CL1 expiration date, the burn fee is doubled to 0.50% to compensate for the heightened pricing risk during the front-month roll.
  • No holding fees: Zero carry cost while tokens are held
  • Physical delivery: Costs of delivery paid by holder when redeemed for physical energy