> For the complete documentation index, see [llms.txt](https://docs.rwa.vip/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.rwa.vip/iii.-rwa-ecosystem-protocol-operation-mechanisms/treasury-contract.md).

# Treasury Contract

The Treasury contract is a simple vault that holds all the funds collected by the protocol. For example, if a user purchases a USDT bond, the USDT will be fully received by the treasury in exchange for an equivalent amount of RWA. New RWA tokens will be minted based on the risk-free assets (RFV) in the treasury. (Details of the RFV will be covered in the bond contract).

#### Total Treasury Assets:

This refers to the total value of all assets entering the treasury through bond sales, including USDT, RWA-USDT LP tokens, etc.

#### <mark style="color:blue;">Total Risk-Free Treasury Assets:</mark>

This refers to the total value of risk-free assets entering the treasury through bond sales. For example, the value of USDT bonds equals the risk-free value of the USDT bonds. However, the total value of LP bonds is greater than the risk-free value of the LP bonds. Therefore, the total treasury assets may decrease if the price of RWA drops, but the total risk-free treasury assets will tend to increase.

The RWA Ecosystem sets that for each RWA minted, there is $1 of risk-free treasury assets backing it. As the risk-free treasury assets increase, more RWA tokens will be minted.