Technical Standard: RWA Red Line Standard (RWA-RL-1)

1. Scope & Purpose

This standard defines the non-negotiable compliance boundary for Real-World Asset (RWA) structures claiming on-chain representation, tokenization, or governance linkage.

Any structure claiming compliance must fully satisfy all requirements defined herein.

This standard does not provide investment advice, structuring guidance, or execution services.

2. Red Line Definition

• A structure fails compliance if any of the following conditions apply

• On-chain assets are linked to unverifiable or discretionary off-chain claims

• Asset control, redemption, or liquidation depends on unpublished or alterable agreements

• Legal ownership and on-chain representation are not deterministically mapped

• Governance decisions can override asset custody, valuation, or disposal constraints

 3. The Three Red Lines

• Legal Ownership Determinacy
  Mandatory, verifiable linkage between on-chain representation and legally recognized ownership or claim rights.
  No discretionary trusteeship or informal custodianship is permitted.

• Asset Isolation & Non-Contamination

• RWA assets must be structurally isolated from issuer balance sheets, affiliated entities, and unrelated liabilities.
  Cross-collateralization or implicit guarantees invalidate compliance.

• Redemption & Liquidation Boundaries
  Redemption, liquidation, and enforcement paths must be pre-defined, publicly auditable, and immune to governance override.
  Emergency, force-majeure, or “committee discretion” clauses do not constitute compliance.

Compliance is binary.

Partial adherence does not constitute compliance.