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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. WTIC is designed to provide commodity exposure and support hedging strategies without the traditional carry costs associated with futures-based oil exposure.

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 calculated daily using a formula that does not directly depend on exchange close/settlement price data. It is designed to remain within a small band of the reference-market close on most days while smoothing price transitions around derivative rollover dates. Short-term deviations can occur, particularly on rollover days.

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 certain pricing-transition days: The burn fee may increase to 0.50% on designated pricing-transition days to account for heightened pricing risk.
  • No holding fees: Zero carry cost while tokens are held
  • Physical delivery: Costs of delivery paid by holder when redeemed for physical energy