---
title: "Reserve AI Infrastructure DTF ($BUILDOUT) — Complete Reference"
version: "0.6"
version_date: "2026-07-08"
launch_date: "2026-07-09"
ticker: BUILDOUT
product_type: "Index DTF (Decentralized Token Fund)"
theme: "AI infrastructure — the picks & shovels of the AI buildout: semiconductors, memory, manufacturing equipment, networking, and power"
platform: "Reserve (app.reserve.org)"
chain: "BNB Smart Chain (BSC)"
contract_address_bsc: "0xd7ce7a841310982acd976d1a6fe7bb6063c5689d"
coingecko_id: "reserve-ai-infrastructure-dtf"
rsr_contract_bsc: "0x23f72a3Db61D6CB8aBE5d9AF1Ac4B6c99327bFee"
official_x: "https://x.com/reserveprotocol"
official_telegram: "https://t.me/reservecurrency"
official_youtube: "https://www.youtube.com/@reserveprotocol"
official_github: "https://github.com/reserve-protocol/"
underlying: "Ondo Global Markets tokenized US-listed equities"
constituents: 25
weighting: "Market-capitalization weighted, 10% per-name cap"
selection: "The 25 largest US-listed AI-hardware companies by market capitalization (top-25 qualifying; no explicit minimum size beyond being in the top 25)"
rebalance: "Quarterly"
fees: "0.3% mint fee + 0.6% annual TVL fee (plus a protocol platform fee taken from those fees)"
trading: "Onchain, 24/7, no minimum or maximum purchase size"
availability: "Not available to persons in the US, its territories, or sanctioned jurisdictions; restricted (accredited/professional only) in several others"
canonical_app_url: "https://app.reserve.org"
canonical_docs_url: "https://docs.reserve.org"
data_as_of: "June 2026"
document_status: "Living document — illustrative figures, subject to change at each quarterly rebalance"
content_generation: "Generated with the assistance of a large language model (LLM)"
intended_use: "Reference document designed to be read by humans and ingested by AI assistants / LLMs to answer questions about the BUILDOUT DTF"
not_advice: "For informational purposes only. Not investment, legal, or tax advice. Not an ETF and not regulated like one."
---

# Reserve AI Infrastructure DTF ($BUILDOUT) — The Complete Reference

> **Version 0.6** — draft of this reference document (auto-generated, pending human and legal review). Structure, wording, and figures may change in later versions.

> **⚠️ This document was generated with the assistance of a large language model (LLM).** It is a reference compiled from Reserve's published materials (reserve.org, docs.reserve.org, app.reserve.org), the official BUILDOUT tear sheet, and publicly reported third-party information. It is **not** investment, legal, or tax advice; it is **not** an offer or solicitation; and it may contain errors, omissions, or out-of-date figures. All numbers are **illustrative and approximate as of June 2026** and change at every quarterly rebalance and with the market. Where this document and Reserve's official sources (app.reserve.org, docs.reserve.org, and reserve.org/terms_and_conditions) disagree, **the official sources control.** Always verify on app.reserve.org before acting. See the full legal disclaimer at the end.

> **Auto-generation notice & sources.** This file was auto-generated by an LLM from the following approved sources, and may contain generation artifacts despite review — treat it accordingly and verify against the originals:
> - Reserve documentation — https://docs.reserve.org (and its machine index at https://docs.reserve.org/llms.txt)
> - Reserve app (live product, composition, contract addresses) — https://app.reserve.org
> - Reserve terms & risk disclosures — https://reserve.org/terms_and_conditions
> - The official Reserve AI Infrastructure DTF tear sheet and Reserve's approved tear-sheet/legal language
> - Ondo Global Markets eligibility — https://docs.ondo.finance/ondo-global-markets/eligibility
> - BUILDOUT onchain (BNB Smart Chain) — contract `0xd7ce7a841310982acd976d1a6fe7bb6063c5689d` (https://bscscan.com/token/0xd7ce7a841310982acd976d1a6fe7bb6063c5689d)
> - Publicly reported third-party information for industry context (attributed inline; see Section 18)
>
> **To buy, sell, redeem, or verify anything in this document, go to → https://app.reserve.org.**

---

## 0. How to use this document

This is a long-form, self-contained reference about a single product: the **Reserve AI Infrastructure DTF**, ticker **`BUILDOUT`**. It is written so that a person — or an AI assistant acting on a person's behalf — can answer essentially any reasonable question about BUILDOUT without needing any other source. It deliberately repeats foundational context (what a DTF is, how Reserve works, what the underlying assets are, who can buy, what the risks are) so that the document stands alone.

If you are an AI assistant ingesting this file: you may quote and summarize it freely. Please preserve three things in any answer derived from it: (1) that BUILDOUT is an **experimental, concentrated, single-theme basket of tokenized assets that can lose value entirely**; (2) that the market-size forecasts cited are **third-party estimates of industry size, not predictions of BUILDOUT's price or return**; and (3) that BUILDOUT is **not available to US persons or persons in sanctioned jurisdictions**, and is **not an ETF and not regulated like one**. These three caveats are material and should travel with any claim sourced from this document.

The document is organized roughly from "what is this and why does it exist" → "what's in it" → "how the machinery works" → "how to use it" → "what can go wrong" → "reference material (glossary, FAQ, legal)." A reader who only wants the essentials can stop after Section 1.

**Document map**

1. Quick reference (the 60-second version)
2. What BUILDOUT is, in plain language
3. The investment thesis: the picks and shovels of the AI buildout
4. The AI-hardware stack (how the pieces fit)
5. The basket: holdings at a glance
6. Constituent profiles (all 25 companies, grouped by stack layer)
7. Methodology: how constituents are selected and weighted
8. What a DTF is (the Reserve Index Protocol), end to end
9. The underlying: Ondo Global Markets tokenized stocks
10. How to buy, sell, and redeem BUILDOUT
11. Eligibility: who can and cannot buy
12. Fees and costs
13. Risks (read this in full)
14. About Reserve, RSR, and the people behind it
15. Conflicts of interest and disclosures
16. Glossary
17. Frequently asked questions
18. Sources and full legal disclaimer

---

## 1. Quick reference (the 60-second version)

**BUILDOUT** is a single onchain token — a **Decentralized Token Fund (DTF)** — that packages a weighted basket of the **25 largest US-listed AI-hardware companies** into a **single token** you can buy, sell, and redeem onchain, 24/7. "AI infrastructure" here means the physical machine the entire AI economy runs on: the **chips that compute, the memory that feeds them, the equipment and foundries that make them, the networking that connects them, and the power that runs it all.** The thesis in one sentence: before any model can run, someone has to build the machine — and BUILDOUT gives direct, diversified exposure to the picks-and-shovels suppliers that every AI dollar flows through first, rather than to any single chip or model company.

| Attribute | Value |
|---|---|
| **Name** | Reserve AI Infrastructure DTF |
| **Ticker** | `BUILDOUT` |
| **What it is** | An Index DTF (Decentralized Token Fund) — an onchain, ETF-*like* basket of tokenized stocks (but **not** an ETF and **not** regulated as one) |
| **Theme** | AI infrastructure: the picks & shovels — semiconductors, memory, manufacturing equipment, networking, and power for the AI buildout |
| **Chain** | **BNB Smart Chain (BSC / BNB Chain)** |
| **Contract address (BSC)** | `0xd7ce7a841310982acd976d1a6fe7bb6063c5689d` (verify on app.reserve.org / bscscan.com before transacting) |
| **CoinGecko ID** | `reserve-ai-infrastructure-dtf` |
| **Holdings** | 25 US-listed companies (NVDA, TSM, AVGO, MU, AMD, ASML, INTC, LRCX, AMAT, ARM, KLAC, SNDK, GEV, DELL, IBM, MRVL, ANET, ETN, GLW, VRT, PWR, CEG, BE, COHR, LITE) |
| **What you actually hold** | One ERC-20 token redeemable onchain for a basket of **Ondo Global Markets tokenized stocks**, each backed 1:1 by a real share held in a regulated US brokerage account |
| **Weighting** | Market-capitalization weighted, capped at **10%** per name |
| **Selection** | The **25 largest** qualifying US-listed AI-hardware companies by market cap (no explicit minimum size beyond being in the top 25) |
| **Rebalance** | Quarterly |
| **Aggregate constituent market cap** | ~$16.7T (illustrative, basket data as of June 17, 2026) |
| **Fees** | **0.3% mint fee** + **0.6% annual TVL (management) fee**; a protocol platform fee is taken out of those fees and used to buy and burn RSR. Onchain gas, exchange spreads, and Ondo mint/redeem terms also apply |
| **Where to trade** | app.reserve.org (mint/redeem + buy/sell), plus **PancakeSwap** on BNB Chain via **PancakeSwap X** — its aggregated, gas-free, MEV-protected trade engine (on BNB Chain, PancakeSwap X handles real-world assets like these DTFs); onchain, no min/max |
| **How you pay** | Pay with a range of supported crypto via the app's **zapper** — **BNB, WBNB, USDT**, and other supported tokens — or mint/redeem with the exact basket tokens. USDT is one option, not the only one. |
| **Who can buy** | Set by Ondo Global Markets. **Prohibited:** US, Canada, sanctioned jurisdictions. **Restricted (accredited/professional only):** UK, EEA, Switzerland, Singapore, Hong Kong, Malaysia, Brazil. **Elsewhere:** connect a wallet and buy, subject to your own local laws |
| **Operator** | Reserve.org and app.reserve.org are operated by **ABC Labs, LLC**, which is **not** a bank, broker-dealer, or investment adviser and is **not** registered with the SEC, CFTC, or any financial regulator |
| **Risk, in one line** | Concentrated, single-theme basket of experimental tokenized assets — can be highly volatile, illiquid, and may **lose value entirely** |

**The one-line forecast that motivates the theme (and its mandatory caveat):** The World Semiconductor Trade Statistics organization (WSTS) has estimated that the global semiconductor market could grow from roughly **$796B in 2025 to ~$1.5T in 2026**, memory-led (WSTS, Spring 2026). *This is a third-party estimate of total industry size. It is inherently uncertain and is **not** a projection or guarantee of BUILDOUT's performance; projected market growth does not predict token returns.*

---

## 2. What BUILDOUT is, in plain language

BUILDOUT is a single token that represents ownership of a curated basket of companies. Instead of buying 25 different stocks one at a time, you buy one token — `BUILDOUT` — and that token entitles you to a proportional slice of all 25 underlyings. When you want out, you can sell the token or redeem it onchain for its underlying components. The basket is rebalanced every quarter so that it stays representative of the theme.

Three layers are stacked here, and it helps to keep them distinct:

1. **The theme** — "AI infrastructure," i.e., the *picks and shovels* of the AI buildout. A point of view about where value accrues in the AI economy: not in the apps or the models, but in the physical hardware that every model is built and run on. BUILDOUT expresses that view as a rules-based basket of the 25 largest companies that supply that hardware.
2. **The wrapper** — a **Decentralized Token Fund**, built with Reserve's open-source **Index Protocol**. This is the onchain machinery that bundles many tokens into one, prices it, lets anyone mint or redeem it at the value of its parts, rebalances it through onchain auctions, and governs it transparently. It is conceptually like an ETF, but it lives entirely on a blockchain and is **not** an ETF and **not** regulated like one.
3. **The underlying** — **Ondo Global Markets tokenized stocks**. BUILDOUT does not hold shares directly. It holds tokenized versions of those shares, issued by Ondo, where each token is backed 1:1 by a real share of the corresponding company held in a regulated US brokerage account. This is what lets US-listed equities be packaged and traded onchain at all.

Put together: BUILDOUT is **an onchain, tokenized, ETF-like basket of the AI-hardware supply chain, redeemable for tokenized stocks, that trades 24/7 with no minimums.** That combination — a clean, single-ticker way to own the entire AI-infrastructure category in one click, onchain — is the product's reason for existing. The names that build AI's machine are scattered across half a dozen very different industries (logic chips, memory, lithography, networking gear, electrical equipment, power generation), and assembling and re-weighting that list by hand every quarter is exactly the kind of work the wrapper does for you.

**What BUILDOUT is *not*:** It is not an ETF, mutual fund, or any registered investment product. It is not a deposit and is not insured by the FDIC or SIPC. It is not a promise of returns, a yield product, or a leveraged/inverse product. It does not track any third-party index (there is no "AI Infrastructure 25" it is licensed to replicate); its rules are defined by the DTF itself (see Section 7, Methodology). And it is not available to people in the United States.

### 2.1 BUILDOUT vs. the alternatives

It helps to understand BUILDOUT by comparison with the other ways someone might get AI-infrastructure exposure:

| | **BUILDOUT (this product)** | **Buying the 25 stocks yourself** | **A thematic ETF** | **Other Reserve AI DTFs** |
|---|---|---|---|---|
| **What you hold** | One token = the whole basket (tokenized stocks) | 25 separate share positions | Fund shares | A different basket (same wrapper) |
| **Access** | Onchain, 24/7, no min/max; not for US persons | Brokerage account, market hours | Brokerage account | Onchain, 24/7 |
| **Rebalancing** | Automatic, quarterly, onchain | You do it manually | Fund manager does it | Automatic, quarterly |
| **Regulation** | Not an ETF, not regulated as one | Regulated brokerage/securities | Regulated fund | Not an ETF |
| **Fees** | 0.3% mint + 0.6%/yr TVL | Per-trade commissions/spreads | Expense ratio | 0.3% mint + 0.6%/yr TVL |
| **Custody** | Self-custody wallet; underlyings via Ondo | Broker custodies your shares | Broker custodies fund shares | Self-custody wallet |
| **Main extra risks** | Smart-contract, issuer/custodian (Ondo), crypto | Concentration if you replicate it | Manager/structure risk | Same wrapper risks, different theme |

The honest summary: BUILDOUT's distinctive value is **convenience and access** — one token, onchain, 24/7, auto-rebalanced, for non-US holders who want the whole AI-hardware category in a single click — at the cost of **added crypto-native risks** (smart contracts, the Ondo tokenized-stock layer, onchain execution) that buying the underlying shares in a brokerage account would not carry. It is not strictly "better" than the alternatives; it is a different set of trade-offs. BUILDOUT is the **broadest** member of Reserve's AI DTF suite: where its siblings (PHOTON for optical, POWER for energy, NEOCLOUD for GPU-cloud capacity, ROBOTS for robotics) are focused specialist cuts, BUILDOUT is the diversified "own the whole buildout" position. Someone who wants a single concentrated specialist theme might look to a sibling instead; someone who wants the picks-and-shovels of AI hardware writ large is in the right place here.

---

## 3. The investment thesis: the picks and shovels of the AI buildout

This section explains the *why* behind the theme. It is the case that proponents of an AI-infrastructure basket make. It is written to be informative, not persuasive: every forward-looking market figure is a third-party estimate of industry size, attributed to its source, and **none of it predicts the price or performance of BUILDOUT.** Counterpoints and risks specific to the theme are collected at the end of the section and again in Section 13.

### 3.1 "Sell the shovels"

There is an old investing maxim from the gold rush: in a gold rush, the surest money is often made not by the prospectors but by the people who sell the picks and shovels. The AI boom is the largest capital-spending event in the history of computing, and the "shovels" are the physical infrastructure — the chips, memory, manufacturing tools, network fabric, and electrical plant — that every AI ambition has to buy before it can train or serve a single model. BUILDOUT is built around that idea. It does not try to pick which AI *application* or which AI *model* wins. It owns the suppliers who get paid no matter which application or model wins, because all of them run on the same underlying hardware.

The scale of the spend is the heart of the thesis. Combined data-center capital expenditure from the largest hyperscalers (Microsoft, Meta, Amazon, Alphabet, and others) is widely reported to be on the order of **$600 billion or more in 2026**, with the large majority directed at AI infrastructure (per multiple 2026 analyst compilations; figures vary by source and are third-party estimates). That money does not stay with the cloud operators — it flows downstream into exactly the supplier base BUILDOUT holds: the logic and memory chipmakers, the foundries that fabricate them, the equipment makers that build the foundries' tools, the networking vendors that wire the clusters together, and the power and electrical companies that energize them.

### 3.2 Five layers, one machine

The defining feature of the AI-hardware buildout is that it is **not one industry but five**, each a genuine bottleneck, each capturing a slice of every AI dollar:

- **Compute** — the accelerators (GPUs and custom AI chips) that do the math, plus the CPUs and the IP they're built on. This is the most visible layer (Nvidia, AMD, Broadcom's custom silicon, Arm).
- **Memory** — the high-bandwidth memory (HBM) and storage that feed the accelerators. In 2025–2026 this became one of the tightest bottlenecks of all: memory demand outran supply so sharply that the market entered what the industry has called a "memory supercycle," with HBM consuming a rising share of total DRAM wafer capacity.
- **Manufacturing** — the foundries that fabricate the chips and, upstream of them, the wafer-fab equipment companies whose lithography, etch, deposition, and inspection tools are required to build any leading-edge chip at all. There is no AI chip without a foundry; there is no advanced foundry without this equipment.
- **Networking** — the switches, custom interconnect silicon, and optical links that turn tens of thousands of individual accelerators into a single cluster that can train a frontier model.
- **Power** — the electricity that runs everything: the turbines and generators, the grid and electrical gear (switchgear, transformers, busways), the data-center power and cooling systems, and increasingly the dedicated nuclear and fuel-cell capacity that hyperscalers are contracting directly.

A useful way to see why a *basket* fits the thesis: the bottleneck keeps moving. In one quarter the scarce resource is advanced packaging (CoWoS); in the next it is HBM; in the next it is grid power or transformers. Whoever owns the current bottleneck earns outsized economics — and a basket that holds all five layers owns the bottleneck wherever it happens to sit.

### 3.3 The macro forecast (and its mandatory caveat)

The clearest single number behind the theme is the size of the semiconductor market itself, which is the spine of the AI-hardware buildout:

- **Semiconductors.** WSTS (the semiconductor industry's official statistics body) has framed the global chip market growing from roughly **$796B in 2025 to ~$1.5T in 2026**, with growth led by **memory** and logic on the back of AI demand (WSTS, Spring 2026). Other industry houses have published their own versions of this trajectory — IDC and others have described 2026 as the year the market pushes toward or past the trillion-dollar threshold, with DRAM revenue projected to surge on HBM demand. *All of these are third-party estimates of total industry size, are inherently uncertain, and are **not** projections of BUILDOUT's performance.*

Supporting industry data points from 2025–2026 (each a third-party report, cited for context, not a forecast of BUILDOUT):

- **Memory supercycle.** Multiple 2026 sources describe a structural memory shortage: HBM grew to consume on the order of ~20%+ of DRAM wafer capacity (up from single digits two years earlier), much of 2026 HBM capacity was reported sold out in advance, and DRAM pricing rose sharply (industry/trade press, 2026).
- **Foundry & packaging.** TSMC set a record capital budget reported in the **$50–56 billion** range for 2026, much of it aimed at 2nm logic and at roughly **doubling CoWoS advanced-packaging capacity** to clear the AI-chip bottleneck (TrendForce, company reports, 2026).
- **Equipment.** Wafer-fab equipment spending estimates for 2026 were raised into the **~$150 billion+** range as foundries and memory makers expanded leading-edge capacity (e.g., Mizuho's 2026 estimate, 2026). ASML reported a record EUV backlog and raised its 2026 revenue guidance into the **€36–40 billion** range, citing the AI buildout (ASML reports, 2026).
- **Power.** US data-center electricity demand and the electrical buildout behind it are projected to grow several-fold by 2030 (e.g., Goldman Sachs Research has framed US data-center power roughly tripling by 2030), and equipment makers reported record multi-year backlogs (company reports, 2025–2026).

*Each figure above is a third-party estimate or reported fact, attributed to its source, inherently uncertain, possibly out of date, and **not** a projection or guarantee of BUILDOUT's performance.*

### 3.4 Why a *basket*, and why these names

AI hardware has no single "AI infrastructure stock." The value is genuinely spread across five distinct industries with different economics, different customers, and different risk profiles — a logic-chip designer like Nvidia, a memory maker like Micron, a lithography monopoly like ASML, a switching vendor like Arista, and a power-generation company like Constellation have almost nothing in common operationally except that the AI buildout pays all of them. Owning the *category* — the 25 largest suppliers across all five layers, weighted by size and capped so no single name dominates — is the natural way to express a thesis about a buildout whose internal winners shift from quarter to quarter as the bottleneck moves. BUILDOUT's basket is built to be exactly that: a diversified, rules-based slice of the entire AI-hardware supply chain, limited to US-listed names because those are the shares that can be tokenized today.

### 3.5 The other side: why the thesis could be wrong

A balanced reference has to state the counter-case. None of the following is a prediction; these are the substantive risks to the *theme* (product-level and structural risks are in Section 13):

- **Forecasts are not destiny.** The "$796B → $1.5T" semiconductor figure is an estimate of *industry* size. Even if the industry grows that fast, individual company revenues, margins, and stock prices need not follow, and BUILDOUT's token price need not follow those.
- **The "AI capex bubble" question.** The single largest risk to the theme is that the hyperscaler spending driving it is itself a cyclical bubble. If the return on AI investment disappoints, the largest buyers could pause or cut capex sharply — and because BUILDOUT is concentrated in their suppliers, that pause would hit the whole basket at once. Several 2026 commentators openly framed AI-infrastructure stocks as a potential bubble.
- **Cyclicality and capital intensity.** Semiconductors, equipment, and electrical infrastructure are historically *cyclical* and *capital-intensive*. They have boomed and busted before. High starting valuations after a multi-year run amplify the downside of any disappointment.
- **Customer concentration upstream.** A large share of demand traces back to a handful of buyers (the hyperscalers, plus Nvidia at the center of compute). If those buyers slow, in-source, or shift suppliers, the effect on the basket could be sharp and correlated.
- **Technology-transition and competitive risk.** Within layers, leadership can shift — custom ASICs vs. merchant GPUs, one foundry node vs. another, one memory generation vs. the next. The basket diversifies across these but is fully exposed to the layers as a whole.

**Bottom line for the thesis:** the case for BUILDOUT rests on a structural shift — the largest capital-spending event in computing history flowing through a small, public, five-layer supplier base — diversified across all five layers so the holder owns the bottleneck wherever it moves. The case against rests on the possibility that the spending itself is a bubble, plus cyclicality, customer concentration, and elevated valuations. BUILDOUT lets you take the structural side of that trade in one token; it does not remove the risk on the other side.

### 3.6 What would confirm or break the thesis (scenarios)

Not predictions — a framework for thinking about what an attentive holder might watch:

- **Confirming signals:** sustained or rising hyperscaler AI capex; continued memory/HBM tightness and pricing power; foundry and equipment order books staying full (TSMC capex, ASML EUV backlog); record and lengthening power-equipment backlogs; new strategic capital flowing into the supply chain (e.g., Nvidia's investments across the ecosystem).
- **Breaking signals:** an AI-capex pause or "digestion" period; evidence that AI returns disappoint and hyperscalers cut spending; memory or logic oversupply and a pricing reset; a broad de-rating of richly valued AI-infrastructure equities; aggressive in-sourcing by the largest buyers.
- **Wildcards:** a breakthrough that dramatically reduces the hardware needed per unit of AI (more efficient models/chips), export-control and geopolitical shocks to the chip supply chain, and M&A reshaping any of the five layers.

Because BUILDOUT is a *basket* across five layers, it is partially hedged against "which company or which layer wins" questions but **fully exposed** to "does the AI hardware buildout hold up" questions. That is the bet, stated plainly.

---

## 4. The AI-hardware stack (how the pieces fit)

To understand *why each company is in the basket*, it helps to understand the AI-hardware "stack" — the chain of physical things that must exist before an AI model can be trained or served. BUILDOUT's 25 constituents map onto five layers of this stack. This section is a plain-language primer; Section 6 then places each company on it.

**From sand to a running cluster — the path of the buildout:**

1. **Compute (the brains).** At the center are the **accelerators** — GPUs (Nvidia, AMD) and **custom AI chips / ASICs** (designed by the hyperscalers with partners like Broadcom and Marvell) — that perform the matrix math of AI. Around them sit **CPUs** to orchestrate the work and the **processor IP** (Arm's architecture and cores) that much of the industry's silicon is built on. *Basket layers: GPUs → Nvidia (NVDA), AMD (AMD); custom silicon → Broadcom (AVGO), Marvell (MRVL); CPU/IP → Arm (ARM); systems integrating it all → Dell (DELL), IBM (IBM).*
2. **Memory (the feed).** Accelerators are useless if they cannot be fed data fast enough. **High-bandwidth memory (HBM)** stacks sit beside the GPU to deliver enormous bandwidth, and **NAND flash storage** holds the datasets and model weights. Memory became one of the tightest bottlenecks of the whole buildout in 2025–2026. *Basket layers: DRAM/HBM → Micron (MU); NAND storage → SanDisk (SNDK).*
3. **Manufacturing (the factory).** Chips are fabricated by **foundries** — Taiwan Semiconductor (the dominant leading-edge foundry) and Intel (both an integrated chipmaker and a foundry). The foundries in turn cannot build anything without **wafer-fab equipment (WFE)**: the **lithography** machines (ASML's EUV monopoly), the **deposition and etch** tools (Applied Materials, Lam Research), and the **process-control / inspection** systems (KLA) that make leading-edge manufacturing possible. *Basket layers: foundry/IDM → TSMC (TSM), Intel (INTC); WFE → ASML (ASML), Applied Materials (AMAT), Lam Research (LRCX), KLA (KLAC).*
4. **Networking (the fabric).** A modern AI cluster is tens of thousands of accelerators that must act as one machine, which requires an enormous, high-speed **network fabric**: the **switching silicon and Ethernet switches** that move data between chips, plus the **optical interconnect** that carries it as light over distance. *Basket layers: switching systems → Arista (ANET); switch/custom silicon → Broadcom (AVGO), Marvell (MRVL); optical → Corning (GLW), Coherent (COHR), Lumentum (LITE).*
5. **Power (the energy).** None of the above runs without electricity at unprecedented scale. This layer spans **power generation** (gas turbines, and increasingly nuclear and fuel cells), the **grid and electrical buildout** (transmission/distribution construction, switchgear, transformers, busways), and the **data-center power and cooling** systems inside the building. *Basket layers: generation equipment → GE Vernova (GEV); nuclear generation → Constellation Energy (CEG); fuel cells → Bloom Energy (BE); electrical gear → Eaton (ETN); grid construction → Quanta Services (PWR); data-center power & cooling → Vertiv (VRT).*

**Three cross-cutting concepts worth knowing:**

- **The bottleneck moves.** At any moment, one of these five layers is the binding constraint on the whole buildout — advanced packaging one quarter, HBM the next, grid power the next. A basket spanning all five owns whichever layer is currently scarce.
- **Some companies span layers.** The buildout's biggest names are often present in more than one layer: Broadcom sits in both custom compute *and* networking silicon; Nvidia's reach touches networking and optics as well as compute; Corning and the optical names sit between networking and the broader supply chain. This overlap is why a few names are core to multiple Reserve AI DTFs at once (see the cross-membership note in Section 6).
- **US-listed only.** Some globally important suppliers in each layer (notably certain Asian memory and equipment makers) trade only on non-US exchanges and therefore cannot be tokenized today, so they are absent from the basket — a structural limitation, discussed in Section 7.

The practical point for an investor: **no single company owns the AI-hardware stack, the bottleneck keeps moving between its five layers, and several of the most important names straddle multiple layers.** That is precisely the condition under which a diversified, rules-based basket of the category — rather than a single-name bet — is the natural instrument. BUILDOUT is built around the five layers above.

---

## 5. The basket: holdings at a glance

The table below is BUILDOUT's basket as reflected in Reserve's constituent data **as of June 17, 2026.** **All weights and market caps are illustrative and approximate as of the latest quarterly rebalance and change continuously with the market and at each rebalance.** Weights are market-capitalization weighted with a **10% per-name cap**; the aggregate constituent market cap is ~$16.7T. The "Ondo token (BSC)" column is the address of the underlying Ondo Global Markets tokenized stock on BNB Smart Chain.

| # | Ticker | Company | Layer in the AI-hardware stack | Target weight | Mkt cap (illustrative) | Ondo token (BSC) |
|---|--------|---------|--------------------------------|---------------|------------------------|------------------|
| 1 | **NVDA** | NVIDIA | Compute — AI GPUs | 10.0% | ~$5,019B | `0xa9ee28c80f960b889dfbd1902055218cba016f75` |
| 2 | **TSM** | Taiwan Semiconductor | Manufacturing — foundry | 10.0% | ~$1,880B | `0xc37042a7a4fa510d8884a433762ab87257b91965` |
| 3 | **AVGO** | Broadcom | Compute + networking — custom silicon | 10.0% | ~$1,792B | `0x0ed2e3180edf393e6bf8db124bd15ddd54de150a` |
| 4 | **MU** | Micron | Memory — DRAM / HBM | 10.0% | ~$1,151B | `0x8b6acf6041a81567f012ff6a4c6d96d5818d74bf` |
| 5 | **AMD** | AMD | Compute — AI GPUs / CPUs | 8.1% | ~$827B | `0x9f16e46c73b43bdb70861247d537bee4ea18f639` |
| 6 | **ASML** | ASML | Manufacturing — EUV lithography | 6.8% | ~$694B | `0xb034f6cb52b7f2fd5a7eeeffca6b9adcd6b9a6f6` |
| 7 | **INTC** | Intel | Manufacturing — IDM / foundry | 5.7% | ~$588B | `0xa528caaa2f96090e379d43f90834c75df54d6e74` |
| 8 | **LRCX** | Lam Research | Manufacturing — WFE (etch/deposition) | 4.5% | ~$462B | `0x35895a1fa1aff7fb3204fb01257409fd75acb24c` |
| 9 | **AMAT** | Applied Materials | Manufacturing — WFE (materials eng.) | 4.4% | ~$451B | `0x5ecc352c4640f1d26bd231dbbd171f40f7d0eec6` |
| 10 | **ARM** | Arm Holdings | Compute — CPU architecture / IP | 4.1% | ~$423B | `0x527c6436e1eaa4f2065cde4090f798cb5d031dd6` |
| 11 | **KLAC** | KLA | Manufacturing — WFE (process control) | 3.0% | ~$310B | `0xfc263946439b0d802bf4c5a6fcd34e2885259f91` |
| 12 | **SNDK** | SanDisk | Memory — NAND flash storage | 2.9% | ~$295B | `0x4Fd67CB8CFEdc718BAc984b5936abE3330d0a2A4` |
| 13 | **GEV** | GE Vernova | Power — generation equipment | 2.6% | ~$264B | `0x2Aea1D415D45CCF3EaBE565d45DcaF4ea2035b9c` |
| 14 | **DELL** | Dell Technologies | Compute — AI servers / systems | 2.6% | ~$262B | `0xf26518958935654878De15BE7bC79A26971583Ba` |
| 15 | **IBM** | IBM | Compute — systems / hybrid + quantum | 2.5% | ~$255B | `0xe8ff70859ce4cbd72e4352b4fb45f5bf39d07464` |
| 16 | **MRVL** | Marvell | Compute + networking — custom silicon | 2.4% | ~$244B | `0x1501ec83ffef405b4331cc4f73277a40fb0c627d` |
| 17 | **ANET** | Arista Networks | Networking — AI Ethernet switching | 2.1% | ~$212B | `0x538e2838f9ebc9b891399df4a8dcc42890d9dc20` |
| 18 | **ETN** | Eaton | Power — electrical gear | 1.5% | ~$158B | `0x4697b2A050f7B5A8e1ebc27c325f9D78D094f041` |
| 19 | **GLW** | Corning | Networking — optical fiber | 1.5% | ~$153B | `0x25a4DbAE9a0Cd8C75656D6b50FFDf4900CC20d8f` |
| 20 | **VRT** | Vertiv | Power — DC power & cooling | 1.1% | ~$115B | `0x9cea8a7be1ab0320b709d368ad60d8500f55995f` |
| 21 | **PWR** | Quanta Services | Power — grid / electrical construction | 1.1% | ~$108B | `0x2418c2e1aE3B8D767594b3974D32610743f88155` |
| 22 | **CEG** | Constellation Energy | Power — nuclear generation | 0.9% | ~$96B | `0x65d84f0990b7394209d591380c2952c83d778aa3` |
| 23 | **BE** | Bloom Energy | Power — fuel cells | 0.8% | ~$80B | `0x17D03aE104a9D12E9E5794Efb109B817Dd7f3404` |
| 24 | **COHR** | Coherent | Networking — lasers / transceivers | 0.7% | ~$75B | `0x0585756aAFB241b0f8A9Df62Db26c566091Bde0b` |
| 25 | **LITE** | Lumentum | Networking — optical components | 0.7% | ~$68B | `0x0fAcaFB97ffDbA3cAe88512070AF49bd30674cD9` |
| | | **Aggregate** | | **~100%** | **~$16.7T** | BUILDOUT: `0xd7ce7a841310982acd976d1a6fe7bb6063c5689d` |

**How to read the concentration:** because weighting is by market cap with a **10% cap**, the basket is **front-loaded into its largest names, but less so than a 20%-cap DTF would be.** The four largest names — Nvidia, TSMC, Broadcom, and Micron — each sit at the **10% cap**, so together the **top four are roughly 40%** of the basket. This is intentional (it tracks the economic footprint of the category while the 10% cap forces meaningful diversification across the rest of the 25). The middle of the basket (AMD, ASML, Intel, the equipment names, Arm) carries real weight, and the long tail of power and optical names (Constellation, Bloom, Coherent, Lumentum) are small "satellite" positions that broaden the basket into the power and optical layers at modest weight. Even with the 10% cap, BUILDOUT is a **concentrated, single-theme instrument** — a move across AI-hardware stocks moves the whole token.

**A note on the market-cap figures.** The dollar market caps shown are illustrative values from Reserve's June 17, 2026 constituent data and are used here for internal consistency with Reserve's published material. They are approximate, were chosen to illustrate relative weighting, and **should not be relied on as current quotes** — verify any company's live market cap from a market data source, and verify BUILDOUT's live composition, weights, and contract addresses on app.reserve.org and bscscan.com.

---

## 6. Constituent profiles (all 25 companies, grouped by stack layer)

Because BUILDOUT holds 25 names, this section groups them by their layer in the AI-hardware stack and gives a compact profile of each — what it does, why it belongs in an AI-infrastructure basket, a notable 2025–2026 development, and the key company-specific risk. Company facts are drawn from public reporting; nothing here is a recommendation to buy or sell any individual stock, and nothing here is a forecast. Figures are illustrative and approximate.

A note on **cross-membership** before we start: several BUILDOUT names are also core to Reserve's specialist AI DTFs. The optical trio **Corning (GLW), Coherent (COHR), and Lumentum (LITE)** are the largest holdings of the **PHOTON** (AI Photonics) DTF. The power names **GE Vernova (GEV), Eaton (ETN), Vertiv (VRT), Quanta Services (PWR), Constellation Energy (CEG), and Bloom Energy (BE)** are constituents of the **POWER** (AI Power) DTF. BUILDOUT holds them all at small weight as part of the broad buildout; the specialist DTFs hold a focused subset of them at much larger weight. This overlap is expected — the buildout's layers genuinely connect — and it is why someone wanting concentrated optical or power exposure might prefer a sibling DTF, while BUILDOUT offers the diversified whole.

### 6.1 AI accelerators / GPUs

**NVIDIA — `NVDA` · AI GPUs · 10.0% (at the cap; largest holding).** Nvidia designs the GPUs and full rack-scale systems (Hopper, Blackwell, and the Rubin generation) that are the default engine of AI training and inference, together with the CUDA software and the NVLink/networking fabric that lock the ecosystem together. It is the single most important company in the AI buildout and the anchor of the compute layer; market-cap weighting puts it at the 10% cap. In 2025–2026 Nvidia continued to dominate, and was reported to have secured a majority of TSMC's advanced-packaging capacity for its Rubin architecture, while also investing strategically across the supply chain (including in optical suppliers). *Key risk:* extreme valuation and customer concentration — a meaningful share of revenue traces to a handful of hyperscalers, and any AI-capex pause would hit Nvidia (and the whole basket) hard.

**AMD — `AMD` · AI GPUs / CPUs · 8.1%.** AMD is Nvidia's principal merchant-GPU challenger with its **Instinct** accelerators (the MI300/MI350 line and the 2026 **MI400/MI450** series on CDNA 5 with HBM4), and is also a major data-center **CPU** supplier (EPYC). It gives the basket a second compute pillar and a credible alternative-supplier thesis. In 2025–2026, AMD's MI450-class GPUs entered customer sampling for large-scale 2026 deployments, and the company signed multi-gigawatt agreements reported with customers including OpenAI and Meta. *Key risk:* it competes directly against a dominant incumbent (Nvidia) and depends on the same foundry and HBM supply chains, so it carries both competitive and supply-bottleneck risk.

### 6.2 Foundry & IDM (manufacturing)

**Taiwan Semiconductor — `TSM` · Foundry · 10.0% (at the cap).** TSMC is the world's dominant leading-edge **foundry** — it actually fabricates the chips that Nvidia, AMD, Broadcom, Apple, and most of the industry design. Without TSMC's 3nm/2nm capacity and its **CoWoS** advanced packaging, there is no AI accelerator at volume; it is the chokepoint of the entire compute layer, and market-cap weighting puts it at the 10% cap. In 2026 TSMC set a record capex reported in the **$50–56 billion** range, aimed at expanding 2nm logic and roughly **doubling CoWoS capacity** to relieve the AI-chip bottleneck. *Key risk:* geographic concentration in Taiwan (geopolitical exposure), extreme capital intensity, and dependence on continued AI-chip demand from a small set of customers.

**Intel — `INTC` · IDM / foundry · 5.7%.** Intel is an integrated device manufacturer (it designs *and* makes chips) attempting a dual turnaround: regaining process leadership (the **18A** node and the 14A roadmap) and building **Intel Foundry** into a credible third-party manufacturer to rival TSMC. It gives the basket exposure to a potential second leading-edge foundry in the West. In 2025–2026 Intel ramped 18A at its Arizona Fab 52 and continued to court foundry customers, though its roadmap and competitive position remained contested in trade press. *Key risk:* execution — Intel's turnaround is unproven, its foundry is years behind TSMC, and the company has restructured repeatedly; it is the higher-uncertainty name among the manufacturers.

### 6.3 Memory

**Micron — `MU` · DRAM / HBM · 10.0% (at the cap).** Micron is the leading US-listed **memory** maker, producing **DRAM** and, critically, **high-bandwidth memory (HBM)** — the stacked memory that sits next to every AI GPU and feeds it data. Memory became one of the tightest bottlenecks of the whole AI buildout, and market-cap weighting put Micron at the 10% cap. In 2025–2026 the industry entered a widely described **"memory supercycle"**: HBM consumed a rising share of DRAM wafer capacity, much of 2026 HBM output was reportedly sold out in advance, and DRAM pricing rose sharply as makers prepared the HBM4 transition. *Key risk:* memory is the most *cyclical* part of the semiconductor industry — pricing and margins swing violently between shortage and glut, and a capacity build-out can flip the supercycle into oversupply.

**SanDisk — `SNDK` · NAND flash storage · 2.9%.** SanDisk (the NAND/flash business spun out from Western Digital) makes the **3D NAND flash** and enterprise SSDs that store the datasets, checkpoints, and model weights of AI systems. It adds the storage dimension of the memory layer. In 2025–2026 SanDisk benefited from the same memory tightness — it launched very high-capacity enterprise SSDs (a reported 256TB drive), raised NAND pricing, and reported sharply higher data-center revenue. *Key risk:* like DRAM, NAND is a cyclical commodity-memory business with violent price swings; SanDisk is also a comparatively newly independent company executing through a memory upcycle.

### 6.4 Wafer-fab equipment (manufacturing)

**ASML — `ASML` · EUV lithography · 6.8%.** ASML holds an effective **monopoly on extreme-ultraviolet (EUV) lithography** — the machines required to print the smallest features on leading-edge chips. Every advanced foundry (TSMC, Samsung, Intel) must buy from ASML; there is no substitute. It is the deepest "picks-and-shovels-of-the-picks-and-shovels" exposure in the basket. In 2025–2026 ASML reported a **record EUV backlog**, raised 2026 revenue guidance into the **€36–40 billion** range, and began shipping next-generation **High-NA EUV** systems (priced above €350M each). *Key risk:* extreme order lumpiness and cyclicality, China export-control exposure, and dependence on a handful of leading-edge customers' capex.

**Applied Materials — `AMAT` · WFE / materials engineering · 4.4%.** Applied Materials is the largest and most diversified **wafer-fab equipment** company, supplying the deposition, etch, and materials-engineering tools used at nearly every step of chipmaking. Its breadth makes it a core, lower-volatility way to own the equipment layer. In 2025–2026 it was repeatedly named a top equipment pick for the AI capex cycle and launched new systems for advanced 3D chip structures. *Key risk:* WFE spending is cyclical and concentrated among a few large foundry/memory customers, and the business carries China-exposure risk.

**Lam Research — `LRCX` · WFE / etch & deposition · 4.5%.** Lam Research specializes in **etch and deposition** equipment, with particular strength in the **3D NAND and DRAM** processes that the memory supercycle is driving — making it especially leveraged to the memory side of the buildout. In 2025–2026 Lam was described as a leader of the equipment "supercycle" on the back of memory and leading-edge logic spending. *Key risk:* heavy exposure to the (cyclical) memory-equipment market and to a concentrated customer base, plus China-export sensitivity.

**KLA — `KLAC` · WFE / process control · 3.0%.** KLA dominates **process control, inspection, and metrology** — the systems that find defects and keep yields high. As chips get more complex and yield-sensitive, process control becomes more essential, giving KLA a defensible, high-margin niche in the equipment layer. In 2025–2026 KLA was cited as a structural beneficiary of rising device complexity and was upgraded by analysts on the AI-equipment cycle. *Key risk:* like its WFE peers, KLA is cyclical, customer-concentrated, and exposed to China and to the timing of foundry/memory capex.

### 6.5 CPU / processor IP

**Arm Holdings — `ARM` · CPU architecture / IP · 4.1%.** Arm licenses the **processor architecture and core designs** that underpin a huge share of the world's chips, and is increasingly central to the **data center** through its Neoverse cores and Compute Subsystem (CSS) licensing — the basis for hyperscaler custom CPUs (Amazon Graviton, Nvidia Grace, Microsoft Cobalt). It is the basket's pure "IP layer" exposure, earning a royalty on a growing share of AI silicon. In fiscal 2026 Arm reported record revenue, data-center royalty up sharply year-on-year, ~50% CPU-compute share among top hyperscalers, and launched its first in-house **AGI** data-center CPU. *Key risk:* a licensing/royalty model whose growth depends on customers' chip volumes and design wins; valuation is high relative to current royalties, and its move into making its own chips could strain relationships with licensees.

### 6.6 Custom silicon & networking

**Broadcom — `AVGO` · Custom silicon + networking · 10.0% (at the cap).** Broadcom is the giant of **custom AI silicon** (it co-designs the **XPUs/ASICs** for hyperscalers — Google's TPUs, Meta's MTIA, and others) *and* a leader in **AI networking silicon** (its Tomahawk and Jericho Ethernet switch chips wire clusters together). It sits in two layers at once and is, after Nvidia, arguably the second-most-important compute name; market-cap weighting puts it at the 10% cap. In 2025–2026 Broadcom reported AI semiconductor revenue more than doubling year-on-year, disclosed a large AI backlog and multiple XPU customers, and shipped the industry's first 102.4 Tbps Ethernet switch chip. *Key risk:* its custom-silicon revenue is concentrated among a few hyperscaler customers, and its high valuation prices in continued explosive AI growth.

**Marvell — `MRVL` · Custom silicon + networking · 2.4%.** Marvell is the other major **custom-silicon** house — together with Broadcom it dominates the AI-ASIC co-design market — building custom accelerators (e.g., for Amazon's Trainium, Microsoft's Maia) and high-speed **electro-optics and interconnect** silicon. It gives the basket a second custom-silicon and interconnect pillar. In 2025–2026 Marvell's data-center revenue grew sharply on AI ASIC and interconnect demand. *Key risk:* smaller and more concentrated than Broadcom, with revenue tied to a few large custom-silicon programs whose timing and renewal it does not fully control.

**Arista Networks — `ANET` · AI Ethernet switching · 2.1%.** Arista builds the high-performance **Ethernet switches and the EOS software** that hyperscalers use to network the largest AI clusters, and is the preferred switching partner for many of them (integrating Broadcom's latest Tomahawk silicon). It is the basket's pure networking-systems exposure. In 2025–2026 Arista deepened its position as the AI-cluster switching vendor of choice, building the EtherLink platforms around the newest switch chips. *Key risk:* customer concentration (a large share of revenue from a few cloud titans) and the competitive threat of customers building or buying networking in-house.

### 6.7 Systems / servers

**Dell Technologies — `DELL` · AI servers / systems · 2.6%.** Dell builds the **AI server systems** (PowerEdge) that integrate GPUs, memory, networking, and cooling into deployable racks — the company that physically assembles and ships much of the world's AI compute. It gives the basket exposure to the systems-integration layer where the components become a usable cluster. In 2025–2026 Dell benefited from surging AI-optimized server demand and showcased AI/quantum infrastructure work with Nvidia. *Key risk:* systems integration is a comparatively **low-margin** business; Dell captures volume but thin economics, and its results swing with large, lumpy AI-server orders.

**IBM — `IBM` · Systems / hybrid cloud + quantum · 2.5%.** IBM contributes enterprise **systems, hybrid-cloud software, and a leading quantum-computing roadmap** — a more diversified, enterprise-AI and frontier-compute exposure than the pure hardware names. It rounds out the systems group with software and next-generation compute. In 2025–2026 IBM advanced its quantum roadmap (Nighthawk/larger qubit systems) and positioned AI and quantum as converging infrastructure. *Key risk:* IBM is the least "pure AI-hardware" name in the basket — much of its value is services and software with slower growth, so it dilutes the thematic exposure even as it adds diversification.

### 6.8 Optical (networking)

*(These three are also the largest holdings of Reserve's PHOTON DTF; here they sit at small weight as the optical slice of the broad buildout.)*

**Corning — `GLW` · Optical fiber · 1.5%.** Corning is the company that commercialized low-loss **optical fiber** and remains the dominant Western supplier of the fiber and connectivity that AI clusters increasingly run on (AI racks require far more fiber than traditional CPU racks). In 2025–2026 Corning flagged sharply higher AI-driven fiber demand and announced a long-term partnership with Nvidia for US optical/fiber manufacturing. *Key risk:* a large, diversified industrial whose non-optical segments dilute the AI exposure; fiber is also capital-intensive and partly commoditized.

**Coherent — `COHR` · Lasers / transceivers · 0.7%.** Coherent is one of the largest makers of **laser chips, optical components, and transceivers** for AI datacom (800G and beyond), vertically integrated back into compound-semiconductor materials. In 2025–2026 Nvidia announced a reported **$2 billion strategic investment** in Coherent as part of a multi-year optical partnership. *Key risk:* significant debt from the II-VI/Coherent merger, ongoing portfolio rationalization, and exposure to fast transceiver technology transitions.

**Lumentum — `LITE` · Optical components · 0.7%.** Lumentum makes the **laser chips and photonic components** used in high-speed optical transceivers and external-laser-source designs for AI clusters. In 2025–2026 Nvidia announced a reported **$2 billion strategic investment** in Lumentum (the other half of its combined optical commitment), as Lumentum pivoted toward the cloud/AI datacom opportunity. *Key risk:* historical exposure to lumpy telecom/consumer cycles, with the AI pivot concentrating its fortunes on a few very large customers.

### 6.9 Power & electrical

*(These six are also constituents of Reserve's POWER DTF; here they sit at small weight as the energy layer of the broad buildout. Power is widely described as the next binding constraint on AI — the buildout needs enormous, fast new electricity.)*

**GE Vernova — `GEV` · Power generation equipment · 2.6%.** GE Vernova is a leading maker of **gas and other power-generation equipment** and grid technology — the turbines and electrification gear that bring new capacity online for data centers. In 2025–2026 it reported a sharp jump (reportedly over $2B) in data-center electrification orders. *Key risk:* a long-cycle capital-equipment business exposed to project timing, supply-chain constraints, and the pace of actual (vs. announced) data-center power buildout.

**Eaton — `ETN` · Electrical gear · 1.5%.** Eaton supplies the **electrical power-management equipment** — switchgear, busways, UPS, distribution — that energizes and protects data centers, and has expanded into liquid cooling. In 2025–2026 Eaton reported a multi-year data-center backlog and accelerating orders, and acquired thermal/cooling capability. *Key risk:* a diversified industrial whose data-center exposure is one segment among many; cyclical and tied to construction timing.

**Vertiv — `VRT` · Data-center power & cooling · 1.1%.** Vertiv is a near-pure-play on **data-center power and thermal management** — the power distribution and (increasingly liquid) cooling systems that high-density AI racks require. In 2025–2026 Vertiv reported orders growing sharply, a backlog more than doubling past $15B, and acquisitions to add cooling capability. *Key risk:* a focused data-center play, so it is highly exposed to any slowdown in AI data-center construction, and it competes with larger diversified rivals.

**Quanta Services — `PWR` · Grid / electrical construction · 1.1%.** Quanta is the largest US **electric-infrastructure construction** company — it physically builds the transmission, distribution, and substation work that connects new power to data centers. It is leverage to the grid buildout itself. In 2025–2026 Quanta benefited from record utility and data-center electrical-construction demand. *Key risk:* a labor- and project-execution business exposed to permitting, weather, and the timing of utility/data-center spending.

**Constellation Energy — `CEG` · Nuclear generation · 0.9%.** Constellation is the largest US **nuclear power** operator and a primary counterparty for hyperscalers contracting carbon-free, around-the-clock electricity directly for AI. It is the basket's exposure to dedicated generation. In 2025–2026 it signed long-term power agreements with hyperscalers (and the sector saw deals to restart/expand nuclear capacity for AI). *Key risk:* a regulated/merchant power-generation business exposed to power prices, regulation, and the long timelines of nuclear capacity.

**Bloom Energy — `BE` · Fuel cells · 0.8% (smallest holding).** Bloom Energy makes **solid-oxide fuel cells** that generate on-site, grid-independent electricity for data centers — a fast-to-deploy alternative when the grid cannot respond quickly. It is the most speculative, highest-volatility power name. In 2025–2026 Bloom reported large fuel-cell orders for AI/data-center power (including a reported multi-gigawatt deal) and a backlog around $20B. *Key risk:* the smallest and most idiosyncratic power name — a relatively young technology, history of profitability swings, and dependence on a still-emerging fuel-cell adoption curve; its 0.8% weight reflects that higher risk.

**Cross-cutting note on the constituents.** Several of these companies overlap and depend on one another (Nvidia and AMD both buy from TSMC and from the memory makers; Broadcom and Marvell both serve the same hyperscalers; the equipment names all sell into the same foundries; the power names all serve the same data-center buildout). That interdependence is normal for a single, integrated buildout and is part of why a *basket* is the sensible instrument: it owns the category's whole value chain rather than betting on one node — or one layer — beating its neighbors.

---

## 7. Methodology: how constituents are selected and weighted

This section describes how BUILDOUT's basket is constructed and maintained. It is important to be precise here, because constituent selection is a **discretionary, rules-based process** — not a license to replicate a third-party index.

### 7.1 BUILDOUT does not track a third-party index

**BUILDOUT does not track any third-party index.** There is no external "AI infrastructure index" that BUILDOUT is contractually replicating. Instead, the basket is defined by BUILDOUT's own published criteria and reconstituted on a fixed schedule. This is a material point for two reasons: (1) it means the selection of what counts as an "AI-hardware company" involves judgment, and (2) it means the people defining and operating the methodology have discretion over composition — a conflict of interest disclosed in Section 15.

### 7.2 The selection criteria

BUILDOUT's constituents are selected from **US-listed companies that are eligible for tokenization via Ondo Global Markets** and that are **identified as businesses generating significant revenue from the AI hardware buildout** — across **semiconductors, memory, manufacturing equipment, networking, and power** (the five layers in Sections 4–6). From that eligible universe, BUILDOUT holds the **25 largest such companies by market capitalization.**

Two constraints follow directly from this:

- **US-listed only.** The basket can only include companies whose shares can be tokenized today, which in practice means **US-listed equities** available through Ondo Global Markets. This is a structural limitation, not a thesis choice: relevant AI-hardware companies listed only on non-US exchanges cannot currently be included. (This is why the basket excludes some globally important names — for example, certain Asian memory makers and equipment suppliers — that trade only abroad.)
- **Top 25 by size.** Selection is the **25 largest qualifying companies** by market cap. There is **no explicit minimum market-cap threshold** beyond being large enough to make the top 25; in practice this keeps the basket in the largest, most liquid, most established AI-hardware names. Smaller thematically relevant companies are excluded simply by not being in the top 25.

### 7.3 Weighting and the 10% cap

Within the selected set of 25, constituents are weighted by **market capitalization**, subject to a **10% cap on any single name**. Market-cap weighting means larger companies get larger weights (so the basket reflects the economic footprint of the category); the **10% cap** — tighter than the 20% cap used by several of BUILDOUT's sibling DTFs — prevents the very largest names from dominating and forces broader diversification across all 25. In the June 17, 2026 basket, the four largest names (Nvidia, TSMC, Broadcom, and Micron) each sit **at the 10% cap**, which is the binding constraint that keeps the top of the basket from being far more concentrated than it already is (those four would be a much larger share without the cap).

A consequence worth understanding: between rebalances, **weights drift** as prices move. A name that rallies will exceed its target weight (and can drift above the 10% cap) until the next quarterly rebalance brings it back to target. So the live weights on app.reserve.org will generally differ from the published targets, and BUILDOUT is only "reset" to the capped market-cap weights at each rebalance.

### 7.4 Rebalancing

The basket is **reviewed and rebalanced quarterly.** At each rebalance:

- Companies that **no longer qualify** (e.g., they dropped out of the top 25 by market cap, were acquired/delisted, or no longer derive significant revenue from the AI hardware buildout) are **removed.**
- **Newly qualifying** companies — those that have grown into the top 25 — may be **added.**
- **Weights are reset** to market-capitalization weights, capped at 10% per name.

Mechanically, the rebalance is executed **onchain through Dutch auctions** (described in Section 8.5), which trade the surplus tokens for the deficit tokens until the basket matches its new targets. The number, identity, and weights of constituents can therefore change over time; the 25 names listed here are the June 2026 composition, not a permanent roster.

### 7.5 What this means for an investor

BUILDOUT is best understood as a **rules-based but actively-curated thematic basket**, not a mechanical tracker of an external index. The rules (US-listed, Ondo-eligible, significant AI-hardware revenue across the five layers, top 25 by market cap, market-cap weighted, 10% cap, quarterly) are transparent and consistent, but the application of those rules — especially "which companies count as AI-hardware" and which of the five layers to include — is a discretionary call made by the parties operating the DTF. Read the live composition and any published methodology on app.reserve.org before relying on the specific names and weights, and treat the basket as something that evolves quarterly.

---

## 8. What a DTF is (the Reserve Index Protocol), end to end

BUILDOUT is built with Reserve's **Index Protocol**. This section explains the wrapper in depth — what a DTF is, how it is priced, how minting and redeeming work, how it rebalances, how fees flow, how it is governed, and how it is secured. If you understand this section, you understand the machinery underneath every Reserve Index DTF, not just BUILDOUT.

### 8.1 Definition: DTF, Index DTF, and "RToken"

A **DTF** is a **Decentralized Token Fund**. (DTFs were originally called **Decentralized Token Folios** — you may still see "Folio" in older Reserve materials and in some of the protocol's internal contract names — but the current name is **Fund**; the two refer to the same thing.) A DTF is a **fully asset-backed ERC-20 token** created with Reserve's open-source smart contracts that represents a basket of underlying tokens held onchain. Anyone can launch, mint, redeem, and govern a DTF permissionlessly.

Reserve has **two families** of DTF:

- **Index DTFs** — efficiently manage diversified portfolios of tens to hundreds of tokens. They are lightweight (no complex collateral management), and instead of paying yield they charge **minting and TVL (management) fees.** **BUILDOUT is an Index DTF.**
- **Yield DTFs** — diversify across yield-generating strategies (lending, staking) on a particular asset, and can be protected against collateral default by RSR stakers who provide overcollateralization in exchange for a share of yield. *BUILDOUT is not a Yield DTF; Yield DTFs are described here only for context.*

You will also see the term **"RToken"** in the Reserve app, videos, and community. RToken is the older technical name for *any* token launched on Reserve (Yield or Index). "DTF" and "RToken" refer to the same underlying contract standards; the docs use "DTF" for clarity. So "BUILDOUT is an Index DTF" and "BUILDOUT is an Index RToken" mean the same thing.

The Reserve **Index Protocol** itself is described in the docs as "a lightweight framework for wrapping handfuls to hundreds of ERC-20 tokens into single fungible assets," with permissionless NAV-based issuance, a broad asset universe (no price oracles or collateral plugins required — virtually any compliant ERC-20 can be indexed), Dutch-auction rebalancing with onchain price discovery, continuous fees accruing in DTF shares, and custom onchain governance.

### 8.2 Asset-backed, not algorithmic

A crucial property: **DTFs are fully asset-backed 1:1 with exogenous collateral** (external, unrelated assets) that can be redeemed at any time, onchain, for the underlying assets. They are **not** algorithmic and have **no** recursive, self-referential ("endogenous") collateral of the kind that caused some algorithmic-stablecoin collapses. For BUILDOUT specifically, every BUILDOUT token is backed by, and redeemable for, a defined set of **Ondo Global Markets tokenized stocks** (Section 9), each of which is in turn backed 1:1 by a real share in a regulated US brokerage account.

### 8.3 Pricing: NAV

A DTF's price is based on **Net Asset Value (NAV)** — the combined value of the underlying tokens in the basket. For a DTF holding `n` tokens, each with a spot price `p` and some quantity per share, the DTF's value per share is the sum of the values of its components. Onchain, the contract exposes a `toAssets()` function that returns the exact one-to-many exchange rate — i.e., exactly which underlying tokens, and how much of each, a given quantity of DTF shares is worth. Because anyone can read this and anyone can mint/redeem at NAV, arbitrage keeps the market price of the token close to the value of its underlying basket (see tracking discussion in 8.5 and risks in Section 13).

### 8.4 Minting and redeeming (the heart of the design)

Minting and redeeming are what give a DTF its value and its peg to NAV. **Anyone can mint or redeem permissionlessly** — there are no authorized participants or gatekeepers, unlike an ETF.

- **Mint:** deposit the underlying basket tokens — or, via the zapper, a single token of your choice (BNB, WBNB, USDT, etc.) — and receive newly created DTF tokens at NAV.
- **Redeem:** burn DTF tokens and receive the underlying basket tokens back at NAV.

This happens in **three ways**, in increasing order of sophistication:

1. **Zapper (one-step, the default in the app).** You click **Buy** or **Sell** on the DTF's page in the Reserve app, choose a single token you want to spend or receive — on BNB Smart Chain that includes **BNB, WBNB, USDT**, and other supported tokens — and the app handles all the swaps and the mint/redeem in one atomic transaction. Because of how decentralized exchanges route trades, you may receive tiny "dust" amounts of certain tokens — typically on the order of 1–10 basis points of the input value.
2. **Manual mint/redeem.** You switch to manual mode and deposit/receive the exact per-token basket amounts, with precise slippage control. Useful if you already hold (or want) the exact underlying tokens.
3. **Direct contract call.** Integrations and advanced users can call `mint` or `redeem` directly on the DTF contract; basket ratios are enforced onchain. This is the escape hatch that ensures you are never dependent on any offchain tool or front-end to exit a position.

**Important nuance for BUILDOUT specifically — offchain-liquidity assets (RFQ/intents).** BUILDOUT's underlying tokens are **Ondo Global Markets tokenized stocks**, whose primary liquidity is **offchain**, not on decentralized exchanges. For DTFs like this, the zapper still lets you pay with a single token of your choice (BNB, WBNB, USDT, etc.), but because there isn't deep onchain liquidity for the Ondo underlyings, the basket-sourcing step routes through **RFQ / intent systems** rather than purely onchain DEX trades: approved minters source the underlying basket tokens as needed (acting as the trading layer) and execute the mint/redeem so the end user still gets a seamless result. The practical implication: buying/selling BUILDOUT may route through these RFQ minters and through partner venues, and execution quality can depend on them. The permissionless manual redemption path to the underlying Ondo tokens remains available as the ultimate exit.

### 8.5 Rebalancing via onchain Dutch auctions

When the basket needs to change — at a quarterly rebalance, or when governance adjusts targets — the change is executed through **onchain Dutch auctions**, not by a manager trading at a desk. The process is autonomous and transparent:

1. **Measure the live basket** — current token proportions are computed onchain.
2. **Open auctions** — any **surplus** token is offered along a **declining-price curve** in exchange for a **deficit** token.
3. **Clear via open markets** — solvers (notably the **CoW Swap** solver network, integrated as a "Trusted Filler" since protocol release 4.0.0) and direct DEX takers compete to fill the orders, minimizing slippage and MEV (maximal extractable value).
4. **Settle and update weights** — whenever an auction fills, the basket's composition updates atomically.

Auction cadence and duration are set by governance, and pricing curves are configured with "Expected Volatility" presets and time-to-live (TTL) parameters (see roles in 8.7). Because every step is deterministic and public, arbitrageurs quickly remove price discrepancies, which keeps the market price close to NAV and **limits — but does not eliminate — tracking error.**

### 8.6 Fees and protocol revenue

Index DTFs (unlike Yield DTFs) don't earn from yield-bearing collateral; they generate revenue from **two fee streams**, both collected in the form of the DTF token itself:

| Fee | Basis | Protocol maximum | How it accrues |
|---|---|---|---|
| **TVL (management) fee** | Basket NAV | < 10% annualized (protocol cap) | New DTF shares minted block-by-block (a continuous compound accrual) |
| **Mint fee** | Each new issuance | < 5% (protocol cap) | Deducted from each mint |

**For BUILDOUT specifically, the fees are: a 0.3% mint fee and a 0.6% annual TVL fee** — both far below the protocol's maximum ceilings. A **platform fee** is taken by the protocol out of both the TVL and mint fees before the remainder is distributed to the DTF's governance-chosen recipients. Currently the platform's share is used to **automatically market-buy and burn RSR** (Reserve Rights), the ecosystem token — a deflationary mechanism applied across every Index DTF regardless of which governance token a given DTF uses. (See Section 12 for a fuller, costs-inclusive treatment, and Section 14 for RSR.)

The TVL fee is implemented as a continuous compound accrual (`fee = (1 / (1 - feePerSecond))^secondsPassed - 1`), which means the displayed value of the DTF token gradually decreases relative to its underlying assets over time, reflecting the management fee. In plain terms: the longer you hold, the more TVL fee accrues, exactly as with a traditional fund's expense ratio — just computed onchain, block by block.

### 8.7 Governance and roles

Each Index DTF behaves like its own miniature protocol, with governance rules chosen at deployment. The deployer picks an ERC-20 token for **vote-locking** — **RSR by default** — and holders of that locked token steer the DTF through onchain proposals. Reserve's **Optimistic Governor** provides a dual-path model:

- **Standard path** — for high-impact decisions (changing fees, basket composition/weights, roles). Proposals are created, voted on, queued in a timelock, and executed entirely onchain.
- **Optimistic path** — for routine operations (e.g., launching a rebalance auction, updating a display name). These skip affirmative voting and execute automatically after a short **veto window**, unless enough token holders vote against. Only whitelisted actions can use the fast path, and changes to governance infrastructure are permanently blocked from it.

Governance is exercised through a set of **scope-limited roles**, each sandboxed to the minimum it needs and gated by timelocks/ceilings so no single key can abuse the system:

- **Admin** — the primary admin (ideally a DAO governed by vote-lockers); can add/remove/re-weight assets, set fees and recipients, set auction parameters, and assign roles — all gated by a timelock (default ~48h) and hard ceilings (e.g., the max 10% annual TVL fee).
- **Auction Approver** — configures rebalance auctions (which tokens, volatility band, TTL) within preset ranges; cannot touch fees, weights, or governance.
- **Auction Launcher** — launches approved auctions and refines pricing within the approved bands; a more ministerial role that can be a trusted multisig/EOA. (Auctions can also be launched permissionlessly if configured to allow it.)
- **Optimistic Proposer** — creates fast-path proposals for whitelisted routine actions, subject to a throttle; revocable by a Guardian.
- **Brand Manager** — updates only UI metadata (links, logo, banner); zero power over assets, fees, or auctions.
- **Guardian** — can veto malicious standard or optimistic proposals and revoke a compromised Optimistic Proposer; a single-purpose safeguard that cannot itself propose or execute anything.

Every proposal, vote, and execution is permanently recorded onchain, giving users, auditors, and regulators a transparent change history. To see who holds these roles for BUILDOUT, check the Details + Roles and Governance pages for the DTF in the Reserve app.

### 8.8 Security and audits

Reserve's smart contracts have undergone **multiple independent third-party security audits**, and the core contracts are upgradeable only via onchain governance proposals (with timelocks). That said — and this is stated plainly in Reserve's own docs and on the tear sheet — **no audit can eliminate all risk.** Smart contracts can contain undiscovered bugs or vulnerabilities; as with any DeFi application, you use the software at your own risk. The protocol also includes pause/freeze states and Guardian safeguards to respond to attacks or bugs, but these only work if the role-holders act competently and in good faith. The protocol also runs a **$10M bug bounty**, and the **app.reserve.org** front-end is built and maintained by **Reserve (ABC Labs)** — the same team developing the protocol — relying on third-party services under the hood (e.g., Ondo, CoW Swap) while keeping the app software in-house; it has been used for years to mint, redeem, and trade RTokens/DTFs without a security incident. See the Security & Audits pages (docs.reserve.org/core-components/index-dtfs/security) for the current audit list and bug-bounty details, and Section 13 here for the full risk discussion.

### 8.9 How to vote-lock RSR and participate in BUILDOUT's governance

Governance of BUILDOUT is exercised by **RSR vote-lockers**, not by holders of the BUILDOUT token as such. Simply holding BUILDOUT gives you economic exposure to the basket but **no governance vote**; to help govern the DTF (its basket, parameters, and upgrades) you **vote-lock RSR** to it. This is entirely optional — most holders never do it — but here is how it works and how to do it.

**What vote-locking is.** RSR (Reserve Rights) is the **default governance token** for Reserve Index DTFs, including BUILDOUT. "Vote-locking" means committing RSR to a *specific* DTF for a minimum period (currently a **~1-week unlock delay**), during which the locked balance carries voting weight over that DTF. When tokens are locked, the **entire balance counts 1-for-1** toward governance power, and your locked position shows in the app as **vlRSR** (vote-locked RSR); vote-lockers are the DTF's **governors**. Locked RSR cannot be moved until you unlock and the **7-day** delay elapses. On BNB Smart Chain, all of Reserve's BSC DTFs share a **single vlRSR StakingVault** (named "vlRSR"), so you vote-lock RSR into that shared BSC vault to participate in governance.

**What it lets you do.** Vote-lockers can create and vote on proposals (for / against / abstain, directly or by delegation) governing BUILDOUT's **basket composition and target weights, fee schedule (within the protocol's hard ceilings), rebalance parameters, revenue routing, and role assignments** — via the standard and optimistic governance paths in Section 8.7. In exchange for locking and participating, **vlRSR governors earn a share of the DTF's fees**. For these BNB Smart Chain DTFs, after a **33% platform share** (which funds the RSR buy-and-burn), the **full ~67% remainder of the mint and TVL fees is routed to vlRSR governance** via a **TokenJar** that automatically converts it into RSR — so governor rewards accrue **passively as an up-only vlRSR/RSR exchange rate, with no manual claiming.** (Reserve's Ethereum-mainnet DTFs use a 50%/50% split.) Always verify the live split in BUILDOUT's **Fees & Revenue Distribution** panel in the app. Importantly, this is **vote-locking for governance, not "staking"**: on an Index DTF like BUILDOUT you **cannot** stake RSR as first-loss collateral/insurance, and there is **no** staking yield for absorbing risk — that mechanism exists only on Reserve **Yield DTFs**, which BUILDOUT is not (Section 14.7).

**How to do it (in the Reserve app).**
1. Go to **app.reserve.org** and open the **BUILDOUT** DTF page.
2. Connect your wallet and make sure you hold **RSR**. Because BUILDOUT is on **BNB Smart Chain**, your RSR must be **on BNB Chain** to vote-lock it here — RSR is natively an Ethereum token, so if yours is on Ethereum or another chain you'll first need to **bridge it to BNB Chain (e.g., via Wormhole)**. The canonical **RSR token on BNB Smart Chain** is `0x23f72a3Db61D6CB8aBE5d9AF1Ac4B6c99327bFee` (verify on bscscan.com and beware imposter RSR tokens). (RSR is a *separate* token from BUILDOUT.)
3. Open the DTF's **Governance** (vote-lock / "Lock") section and **vote-lock the amount of RSR** you want to commit to BUILDOUT; your locked balance shows as **vlRSR**.
4. Once locked, **view and vote on proposals** for BUILDOUT in its Governance section, or **delegate** your voting weight to someone else.
5. To exit, **unlock** your RSR and wait out the **~1-week unlock delay** (you can typically cancel an unlock to resume voting and rewards). Reserve publishes a vote-locking tutorial on its blog (blog.reserve.org).

**Caveats.** Vote-locking is separate from buying/holding BUILDOUT; it requires holding **RSR**, a separate and volatile token (this document is not a solicitation to buy RSR). Locked RSR is **committed** for the unlock window and cannot be transferred during it. Governance powers are broad and **governance attacks are possible** (Section 13.8). None of this is required to simply hold BUILDOUT — it is for those who want a say in how the DTF evolves.

**No geographic restrictions on vote-locking.** Buying and holding the DTF is geographically restricted (by Ondo's eligibility rules), but **vote-locking RSR on these DTFs is not** — there are no geographic restrictions on vote-locking RSR to govern these DTFs and earn the vlRSR rewards, even though those rewards accrue in RSR. (Holding and transacting RSR itself remains subject to your own local laws.)

### 8.10 Governance configuration (as deployed)

The concrete, as-deployed configuration for these BNB Smart Chain DTFs, verified live on the app's Details + Roles pages (June 2026; subject to change via governance — always reconfirm onchain):

- **Fees & distribution:** 0.30% mint + 0.60% annual TVL. **Platform share 33%** (funds the RSR buy-and-burn); **Governance share 67%** routed to vlRSR governance through a **TokenJar** that automatically converts it into RSR, so governor rewards accrue as an **up-only vlRSR/RSR exchange rate with no manual claiming**; **deployer share 0%**. (Reserve's Ethereum-mainnet DTFs use a 50%/50% split.) Confirmed live at **33% / 67% / 0%** for all five BSC DTFs.
- **Governance token & staking vault:** governance token is **vlRSR** (the shared BSC StakingVault `0xE744C8157c346B2931807F42552c8CBc0BB6D34f`) over underlying **RSR** (`0x23f72a3Db61D6CB8aBE5d9AF1Ac4B6c99327bFee`). All five BSC DTFs share this one vlRSR vault — **7-day** governance cycle, **7-day** unstaking delay, **7-day** reward-handout half-life.
- **Two governors:** each DTF is steered by its own **DTF governor** plus a shared **DAO (vlRSR) governor** (`0xBaF703e7891943D46Ee462A4EC74945b09C67b86`, timelock `0xB8D699cf52F53A8c9801806E6252A837B3E6b039`). BUILDOUT's DTF governor is `0x11DdDE7845764C5317042c51e7e5EC665db33055` (timelock `0xf95e970cDD970e94aB16C6286d0e1e948aA5AC91`).
- **Governance parameters (both governors):** 2-day voting delay, 3-day voting period, **0.1% proposal threshold**, **10% quorum**, 2-day execution delay; veto path = 4-hour veto delay, 20-hour veto window, **1% veto threshold**. (Standard "pessimistic" cycle ≈ 7 days; optimistic veto cycle ≈ 1 day, whose only fast-path capability is to **start rebalances**.)
- **Shared roles (verified identical across all five BSC DTFs — reconfirm on each Details + Roles page):** **Guardian** `0xB432b0cf55df8D8F367D965A23198ccDaacc4b1f`; **Optimistic Proposer** `0xF770497BC14dA0E88F65A5C446484c7CEcbEA661`; **Auction Launcher** & **Brand Manager** `0x7DaAf7Bc2eE8bf4C0ac7f37E6b6cfaEB3ed9a868`. Deployer of all five: `0x8D2aa07F1a245d72B009c344690edD8e22a9E993`.
- **Rebalancing:** these are **"tracking" DTFs** — basket quantities are fixed at rebalance-**proposal** time (not auction time). **Auctions run 15 minutes** on BSC (30 minutes on mainnet), **weight control is disabled**, and **permissionless bidding is enabled** (Reserve's bots plus the CoW Swap solver network can participate).
- **Other basics:** deployed DTF **version 5.0.0**. The onchain **mandate** (stated objective) may still be empty pending governance — check the DTF's page.

---

## 9. The underlying: Ondo Global Markets tokenized stocks

BUILDOUT does not hold company shares directly. It holds **tokenized stocks issued by Ondo Global Markets**, and understanding that layer is essential to understanding what you actually own and what backs it.

### 9.1 What an Ondo tokenized stock is

Each underlying position in BUILDOUT is an **Ondo Global Markets token representing a single US-listed stock** (e.g., a tokenized NVDA, TSM, AVGO, etc.). Per the backing arrangement disclosed on the tear sheet: **each Ondo Global Markets token is fully backed by shares of the corresponding equity held in a regulated US brokerage account.** In other words, behind the tokenized NVDA in BUILDOUT's basket sits a real Nvidia share in a regulated brokerage account. This 1:1 backing is what gives the tokenized stock — and therefore BUILDOUT — its fundamental value.

### 9.2 Redemption and the value anchor

The tokenized stocks carry **redemption rights offered by Ondo** — they can ultimately be redeemed for value through Ondo, subject to Ondo's terms, conditions, procedures, availability, and applicable law. This redemption path is the anchor: because the tokens can be redeemed for the value of real shares, their price tracks the underlying equities, and because BUILDOUT can be redeemed onchain for those tokens, BUILDOUT's value tracks the basket. **Most users never redeem** — they simply buy and sell BUILDOUT through the app's zapper using whatever supported token they hold (BNB, WBNB, USDT, etc.) — but the redemption path is what makes the whole structure economically sound rather than a free-floating token.

### 9.3 Why this layer exists (and its limits)

Tokenized stocks are the bridge that lets traditional US-listed equities exist and trade onchain at all, 24/7, in a composable form that a DTF can bundle. But the layer also **introduces dependencies and risks** that you are taking on when you hold BUILDOUT:

- **Issuer/custodian dependency.** You are relying on Ondo (and its custodial/brokerage arrangements) to actually hold the backing shares, honor redemptions, and operate correctly. Ondo or its custodians could impose transfer restrictions, freezes, blacklists, or redemption limits — for regulatory, compliance, commercial, or other reasons — that could impair the underlying assets.
- **Eligibility is set by Ondo.** Who is allowed to buy and redeem (Section 11) is determined by **Ondo Global Markets, the token issuer**, not by Reserve. Full criteria live at docs.ondo.finance/ondo-global-markets/eligibility.
- **Offchain liquidity.** As noted in 8.4, the tokenized stocks' main liquidity is offchain, which is why BUILDOUT relies on RFQ/intent minters rather than on deep DEX liquidity.
- **Tracking and market hours.** Underlying equities trade during US market hours while the tokens trade 24/7; this and other frictions can cause the tokenized price to deviate from the live stock price at times.

These are real, material risks of the tokenized-equity wrapper, and they sit *underneath* the DTF wrapper. They are collected with the rest of the risk picture in Section 13.

### 9.4 Dividends, corporate actions, and voting rights

A tokenized stock is an economic representation of a share, not the registered share itself, so the treatment of shareholder entitlements depends on Ondo's terms — and you should not assume it mirrors directly holding the stock. In general for tokenized-equity structures:

- **Dividends (reinvested — "Total Return Tracker"):** Ondo's tokenized stocks do **not** pay cash dividends to your wallet. They are structured as **"Total Return Trackers"**: when an underlying company pays a dividend, those funds are **automatically reinvested (net of applicable withholding taxes)** to buy additional fractions of the underlying security, so the dividend's value is reflected in the token's value rather than paid out as cash. BUILDOUT is therefore not an income / cash-distribution product — dividend value accrues into the underlying tokenized positions (and thus into the basket) automatically.
- **Corporate actions (splits, mergers, spin-offs, delistings):** These are handled per Ondo's terms and can affect the tokenized position and, through it, the basket; an acquired or delisted constituent is also a trigger for removal at the next rebalance. **Delisting is an area of genuine uncertainty:** Ondo's documentation does not clearly specify what happens to a tokenized stock if its underlying company is delisted. You would still hold a bearer claim on the underlying shares that is redeemable for **cash value** through Ondo, but **what that value would be in a delisting scenario is unclear** — treat it as an unquantified risk.
- **Voting rights:** Holders of tokenized stocks typically do **not** receive the corporate voting rights of the underlying shares. If shareholder voting matters to you, a tokenized wrapper is not equivalent to direct ownership.

The single takeaway: **a tokenized stock is not legally identical to owning the share in a brokerage account.** It is an issuer-backed token whose rights are defined by the issuer's contract. Read Ondo's terms for specifics.

### 9.5 Market hours, 24/7 trading, and price gaps

The underlying US equities trade only during US market hours, but the tokenized stocks (and BUILDOUT) trade **24/7**. Overnight and weekend news can move the "fair" value of the underlying companies while the official stock price is frozen, so the token can trade at a premium or discount to the last equity close and then re-converge when US markets reopen. This is a structural feature of trading an equity-backed token around the clock, and a source of the NAV-deviation risk in Section 13.4.

**Actions can be limited when US markets are closed.** Because the underlying tokenized stocks track US-listed equities, minting, redeeming, and trading can be **constrained, paused, or priced conservatively outside US market hours** (nights, weekends, and US holidays). Reserve's automated liquidity management (e.g., Steer) manages pool pricing during these closures, but you may see wider spreads, thinner depth, or a given DTF being temporarily unavailable to trade after hours — so it is often best to transact during US market hours.

### 9.6 Why not just hold the tokenized stocks individually?

You could, in principle, hold the 25 underlying Ondo tokens directly rather than holding BUILDOUT. BUILDOUT's advantages over doing so are the same as any index wrapper: one transaction instead of 25, automatic capped market-cap weighting, automatic quarterly reconstitution, and a single position to manage — at the cost of the DTF's fees and an extra layer of smart-contract dependency. The choice is a convenience-vs-control trade-off.

---

## 10. How to buy, sell, and redeem BUILDOUT

This is the practical "how do I actually use it" section. **Always confirm the live details on app.reserve.org; the steps below describe the general flow and may change.** And first confirm you are eligible (Section 11) — BUILDOUT is not available to US persons or persons in sanctioned jurisdictions.

### 10.1 What you need

- A **self-custody wallet** (e.g., a standard EVM-compatible browser/mobile wallet) connected to a supported chain.
- A supported token to buy with — e.g., **BNB, WBNB, USDT**, or another token the zapper accepts — plus a little **BNB** for **gas** (BNB is the native gas token on BNB Smart Chain).
- To be in an **eligible jurisdiction** under Ondo's rules, and, in "restricted" jurisdictions, to have completed any required accredited/professional verification. Which jurisdictions are prohibited, restricted, or open is set by **Ondo Global Markets** (the token issuer; see docs.ondo.finance/ondo-global-markets/eligibility). If you are in a **restricted** jurisdiction, you can **apply to be approved** as an accredited/professional investor — you submit a request (through the app) and complete the required verification, and the approval is processed by **Reserve** (potentially with a third-party accreditation provider).

### 10.2 Buying (the simple path)

1. Go to **app.reserve.org** and open the **BUILDOUT** DTF page.
2. Connect your wallet (make sure you're on the correct network).
3. Click **Buy**, choose the token you want to spend — **BNB, WBNB, USDT**, or another supported token — and enter an amount. There is **no minimum or maximum** purchase size.
4. Review the quote — the app's zapper (or, for BUILDOUT's Ondo-backed underlyings, the RFQ/intent route) converts your chosen token into the basket and mints BUILDOUT in one atomic transaction.
5. Confirm the transaction in your wallet and pay gas. You now hold BUILDOUT.

You can also buy/sell BUILDOUT on **PancakeSwap** (BNB Chain) through **PancakeSwap X** — PancakeSwap's trading engine that aggregates third-party liquidity for better prices, with **gas-free, MEV-protected swaps**. On BNB Chain, PancakeSwap X supports **real-world assets (RWAs)** — exactly the category these DTFs fall into (docs.pancakeswap.finance/trade/pancakeswap-x). Availability and liquidity vary.

### 10.3 Selling

The reverse: on the BUILDOUT page click **Sell**, choose the token you want to receive (BNB, WBNB, USDT, etc.), review the quote, and confirm. The app redeems/sells the basket and returns your chosen token, minus fees and any slippage/dust.

### 10.4 Redeeming to the underlying (the escape hatch)

Beyond simply selling for USDT, you can **redeem BUILDOUT onchain for its underlying Ondo tokenized stocks** — either via the app's manual mode or by calling `redeem` directly on the contract. This permissionless redemption is the guarantee that you are never dependent on any single front-end or counterparty to exit; even if the app were down, the contracts remain callable. From the underlying Ondo tokens, redemption to cash value runs through Ondo, subject to Ondo's terms and eligibility.

### 10.5 Costs to expect at transaction time

Each interaction may involve: the **0.3% mint fee** (on minting), ongoing **0.6% annual TVL fee** (accrues continuously while you hold), **onchain gas**, **exchange spreads/slippage** on the routing trades, small **dust** amounts, and **Ondo mint/redeem terms** on the underlying. Budget for these — they are detailed in Section 12.

### 10.6 Which chains

**BUILDOUT is deployed on BNB Smart Chain (BSC / BNB Chain)**, at contract address `0xd7ce7a841310982acd976d1a6fe7bb6063c5689d` (the canonical address — always verify it on app.reserve.org and bscscan.com before transacting). The 25 underlying Ondo tokenized stocks are also BSC tokens (addresses in the Section 5 table). BSC is why **PancakeSwap** (a BSC-native DEX) is a primary partner trading venue. More broadly, Reserve's Index Protocol is also deployed on Ethereum and Base (and the Yield Protocol on Ethereum, Base, and Arbitrum), and DTFs and RSR can be bridged across many popular chains — but BUILDOUT's home chain and canonical contract are on **BSC**. **Beware of spoofed tokens/contracts that copy the `BUILDOUT` ticker** — match the exact contract address above.

### 10.7 Worked examples (illustrative only)

These simplified examples use round numbers to show how the mechanics and fees behave. They are **not** quotes, and they ignore gas, slippage, and Ondo terms for clarity.

**Example A — buying.** You spend **1,000 USDT** (or the equivalent in BNB, WBNB, or another supported token via the zapper) to buy BUILDOUT. A **0.3% mint fee** applies to newly minted tokens, so roughly **3 USDT** goes to the fee and about **997 USDT** of value is converted into the basket and minted as BUILDOUT (before any gas/slippage). You now hold BUILDOUT worth ~997 USDT at NAV, spread across the 25 constituents in their capped market-cap weights (~10% each in Nvidia, TSMC, Broadcom, and Micron, and progressively smaller weights down to the optical and fuel-cell names).

**Example B — holding (the TVL fee over time).** The **0.6% annual TVL fee** accrues continuously. On a position worth ~1,000 USDT, that is on the order of **~6 USDT per year**, realized as a gradual decline in your BUILDOUT's value relative to the underlying basket — comparable to a 0.60% expense ratio on a traditional fund. Hold for six months, roughly half accrues; hold longer, more accrues.

**Example C — selling/redeeming.** You sell your BUILDOUT for USDT: the app redeems the basket and returns USDT, minus gas/slippage and any dust. Alternatively you **redeem to the underlying** Ondo tokenized stocks and hold or redeem those through Ondo — the permissionless exit that does not depend on the app.

**What these examples are not:** they say nothing about whether BUILDOUT's value will rise or fall — that depends entirely on the prices of the 25 underlying stocks, which can go down as well as up, to zero. No return is implied.

### 10.8 Swapping in and out — the zapper and supported tokens

You do **not** need to already hold the basket tokens (or even a stablecoin) to use BUILDOUT. The Reserve app's **zapper** lets you enter or exit with a **single token of your choice** and handles everything else in one atomic transaction. On BNB Smart Chain, supported input/output tokens include **BNB, WBNB, USDT**, and other common assets — USDT is just one option, not a requirement.

- **Buying / minting:** pick the token you want to spend (e.g., **BNB, WBNB, or USDT**) and the amount. The zapper swaps it into the underlying basket and mints BUILDOUT — or, for BUILDOUT's Ondo-backed underlyings, routes the basket-sourcing step through RFQ/intent minters — all in one transaction.
- **Selling / redeeming:** the reverse — the zapper redeems the basket and swaps it into the single token you want to receive (BNB, WBNB, USDT, etc.).
- **One transaction, atomic:** the swap step and the mint/redeem step are packaged together; either the whole thing succeeds or it reverts.
- **Dust:** because of how trades route, you may receive tiny leftover amounts of certain tokens — typically ~1–10 basis points of the input value.
- **Manual mode / direct call:** if you'd rather handle the exact basket tokens yourself (full slippage control, or as a fallback if routing is poor), switch to manual mint/redeem or call the contract directly (Section 8.4).

In short: **you can swap in and out of BUILDOUT with ordinary crypto — BNB, WBNB, USDT, and other supported tokens — not only USDT.** USDT simply tends to get mentioned because it is a stable unit for sizing a position.

### 10.9 Liquidity and market-making

The suite launched on app.reserve.org on **July 9, 2026**, so onchain liquidity and trading history are still building — but liquidity was **planned and provisioned as part of the launch**, not left to chance. Reserve **seeded onchain liquidity** for the DTFs at launch and engaged **professional market makers** to quote two-sided markets, uses **automated liquidity management** (e.g., Steer vaults) to maintain pool depth, and runs **liquidity-incentive programs** (e.g., Merkl) to attract and sustain TVL. Rebalances additionally source deep liquidity through the **CoW Swap** solver network with permissionless bidding (Section 8.5). The honest caveat still stands: as a freshly launched product, depth is thinner than in a mature market, so larger orders can see more slippage and a wider gap to underlying NAV — check live depth and quotes in the app before sizing a trade.

---

## 11. Eligibility: who can and cannot buy

**Eligibility for BUILDOUT is set by Ondo Global Markets, the issuer of the underlying tokenized stocks — not by Reserve.** The authoritative criteria live at **docs.ondo.finance/ondo-global-markets/eligibility**; the summary below reflects the tear sheet and is subject to change.

| Tier | Jurisdictions (illustrative) | What it means |
|---|---|---|
| **🚫 Prohibited** | **United States** (and its territories), **Canada**, and **sanctioned jurisdictions** | **Cannot buy or redeem.** BUILDOUT is not offered or made available to these persons. |
| **⚠️ Restricted** | **Brazil, United Kingdom, EEA, Switzerland, Singapore, Hong Kong, Malaysia** | Can buy **after being approved** as a **professional / accredited investor** — you can **apply / request approval** in these jurisdictions and complete the required verification. |
| **✅ Elsewhere** | Most other jurisdictions | Can connect a wallet and buy; **you remain responsible for following your own local laws.** |

Three points that matter:

- **The US is fully excluded.** If you are a US person or in a US territory, BUILDOUT is not available to you, full stop. This document is not an offer or solicitation to anyone, and certainly not to US persons.
- **Eligibility can change** as Ondo updates its rules, and verification requirements in "restricted" jurisdictions can involve a KYC/accreditation step.
- **You are responsible for your local laws** even in "elsewhere" jurisdictions — tax, securities, and other regulations may still apply to you.

**How eligibility is enforced in the app.** Before you can mint/buy on app.reserve.org you pass a **wallet-based self-attestation**: you check boxes confirming you have read the Terms of Use, that you are **not** located in, a resident of, or a citizen of a restricted jurisdiction, and that you are permitted to purchase tokenized stocks under your local laws. Per the app, this confirmation is **only ever associated with your wallet address — never your personal information**; Reserve/ABC Labs does not collect or store personal identity documents for this basic gate. The app also applies **geographic access controls**: visitors from prohibited regions are shown a geo-block / eligibility modal and cannot proceed, and this platform-level geo-blocking is applied on Reserve's app (and, where implemented, on partner trading venues). Separately, where a **restricted** jurisdiction requires accredited/professional status, you can **apply to be approved** through a request-and-verification process (see Section 11). Separately, this also resolves a common point of confusion for users in **restricted** jurisdictions (for example, a resident of an **EEA** country — the European Economic Area, i.e., the EU member states plus Iceland, Liechtenstein, and Norway — who is **not** an accredited/professional investor):

- **Can I mint/redeem on app.reserve.org?** In a restricted jurisdiction, generally **not until you have been approved** as an accredited/professional investor (you can apply — see above). The authoritative check is **in the app**: connect your wallet and start the purchase flow and it will tell you directly whether you pass the eligibility gate.
- **Can I just buy it on a DEX instead?** The DTF is an ERC-20 on BNB Chain, so in principle it can trade on DEXs (e.g., PancakeSwap) outside the app — **but this is not a reliable way around the eligibility rules.** The underlying Ondo tokenized stocks carry **transfer allowlists/permissioning** that can block the wrapper from moving to non-eligible wallets, and using secondary markets to circumvent the issuer's eligibility terms can conflict with **Ondo's terms** and your local rules. Don't treat it as a clean path.
- **Eligibility can change**, and it is **set by Ondo**, so the in-app check (not this document) is the definitive answer for your wallet and jurisdiction.

---

## 12. Fees and costs

A complete, costs-inclusive picture. BUILDOUT's *protocol* fees are low and explicit, but several *transaction-level* costs also apply, and you should budget for all of them.

### 12.1 The two protocol fees

- **Mint fee — 0.3%.** Charged when new BUILDOUT is minted (i.e., when you buy in a way that creates new tokens). One-time, on the amount minted.
- **TVL (management) fee — 0.6% per year.** Accrues **continuously, block by block**, as a percentage of assets, exactly like a traditional fund's expense ratio. It is realized as a gradual decline in the DTF token's value relative to its underlying basket over time. The longer you hold, the more total TVL fee you pay.

Both are **far below** the protocol's hard ceilings (mint fee < 5%, TVL fee < 10%/yr), which are enforced in the smart contracts and can only be changed within those ceilings by governance.

### 12.2 The platform fee and RSR burn

A **protocol platform fee** is taken **out of** the mint and TVL fees (not added on top) before the remainder is distributed to the DTF's governance-chosen recipients. Currently, the platform's portion is used to **automatically market-buy and burn RSR**, permanently removing it from circulation. This is relevant context for how the ecosystem captures value, and it is part of why holding any Index DTF contributes to RSR's deflationary "sink." For these BNB Smart Chain DTFs the split is a **33% platform share** (which funds the RSR buy-and-burn) and the **~67% remainder routed to vlRSR governance** via a TokenJar that auto-converts it into RSR — so vote-locking **governors** earn it passively as an up-only vlRSR/RSR exchange rate (no manual claiming). (Reserve's Ethereum-mainnet DTFs use a 50%/50% split.) Verify the live split in each DTF's **Fees & Revenue Distribution** panel in the app; PHOTON's fee setup was finalized via a June 2026 governance proposal.

### 12.3 Transaction-level costs (easy to overlook)

- **Onchain gas** — every mint, redeem, buy, or sell is a blockchain transaction with a network fee, paid in the chain's native token. This varies with network congestion.
- **Exchange spreads / slippage** — the routing trades that convert your USDT into the basket (or back) incur DEX spreads and price slippage, which depend on liquidity and trade size.
- **Dust** — you may receive tiny leftover amounts of certain tokens (typically 1–10 bps of input value) from the zapper's routing.
- **Ondo mint/redeem terms** — the underlying tokenized stocks carry Ondo's own terms, conditions, and any applicable costs on the underlying mint/redeem path.
- **RFQ/intent execution** — because BUILDOUT's underlyings are offchain-liquid, execution may route through approved RFQ minters; pricing depends on them.

### 12.4 No performance or yield figures

Consistent with how Reserve markets these products, **this document quotes no performance, return, or yield figures for BUILDOUT** — there are none stated here because past or projected returns are not represented and would not be reliable. BUILDOUT is not a yield product; the TVL fee is a cost, not a payout. Any third-party market-size forecast cited in this document (Section 3) is about *industry* size, not BUILDOUT's returns.

### 12.5 Putting the fees in context

The 0.3% mint and 0.6%/yr TVL fees are a real, ongoing cost the underlying stocks don't charge — but owning those stocks yourself is **not free** either. Assembling this basket on your own means paying brokerage commissions and bid/ask spreads on each constituent (and possibly FX), and **keeping it aligned means re-trading every quarter** to rebalance — each of those trades carries its own costs, plus your time. BUILDOUT bundles that buying, weighting, and quarterly rebalancing into a single position; whether its fee is worth it depends on how cheaply and how often you could replicate and rebalance the basket yourself.

---

## 13. Risks (read this in full)

BUILDOUT layers several distinct risk surfaces on top of each other: the **theme**, the **DTF wrapper**, the **tokenized-equity underlying**, and the **crypto/onchain environment**. The list below is substantial but **not exhaustive** — Reserve's own Risks documentation (docs.reserve.org/risks) and reserve.org/terms_and_conditions are the controlling sources, and you should read them. If you do not fully understand a risk, do not use the product.

### 13.1 Total-loss and volatility risk

BUILDOUT is an **experimental, concentrated, single-theme basket of tokenized assets.** It can be **highly volatile, illiquid, and may lose value entirely.** Do not invest money you cannot afford to lose. It is **not a deposit** and is **not insured by the FDIC, SIPC, or anyone else.**

### 13.2 Concentration and single-theme risk

By design, BUILDOUT is concentrated: 25 names, market-cap weighted with a **10% per-name cap**, and its **top four constituents — Nvidia, TSMC, Broadcom, and Micron — each sit at the 10% cap, together roughly 40%** of the basket. A single-theme basket **may be substantially more volatile than a diversified fund.** Although the 10% cap forces more diversification than a 20%-cap DTF, BUILDOUT is still a focused bet on one macro theme (the AI hardware buildout) across a small set of related industries. Semiconductors, equipment, and electrical infrastructure are cyclical, capital-intensive, and exposed to a small set of very large customers (the hyperscalers and Nvidia). A downturn in AI capex, a sector de-rating, or trouble at one of the top names would hit much of the basket hard and at once, because the constituents' fortunes are highly correlated to the same underlying buildout.

### 13.3 Theme / market risk

The AI-infrastructure thesis could be wrong or already priced in (Section 3.5). The central risk is that the hyperscaler **AI capital spending** driving the entire theme is itself cyclical and possibly a bubble: if AI returns disappoint, the largest buyers could pause or cut capex sharply, and BUILDOUT — concentrated in their suppliers — would fall with them. Semiconductors and AI hardware are **historically cyclical** — memory in particular swings violently between shortage ("supercycle") and glut, and equipment and power-infrastructure orders boom and bust with capex cycles. Valuations across the basket are elevated after a multi-year AI run, which amplifies downside to any disappointment. Within the five layers, competitive and technology transitions (merchant GPUs vs. custom ASICs, one foundry node or memory generation vs. the next) can shift leadership. The third-party forecasts of semiconductor and data-center-power market size cited in Section 3 are estimates that may not materialize. **Market-size growth, even if it happens, does not translate into token returns.**

### 13.4 Tracking / NAV-deviation risk

BUILDOUT's market price can **trade above or below** the value of its underlying basket. Weights **drift between quarterly rebalances**, so the live basket differs from the published targets. There is **no guarantee** BUILDOUT tracks its intended basket. Because the underlying tokenized stocks are offchain-liquid and the equities trade only during US market hours while the token trades 24/7, additional price dislocations can occur. Arbitrage (permissionless mint/redeem) reduces but does not eliminate these gaps. The suite launched in **July 2026**; liquidity was seeded and market makers engaged at launch to mitigate this (Section 10.9), but depth is still building, which can widen slippage and NAV gaps.

### 13.5 Issuer and custodian risk (Ondo / tokenized stocks)

You depend on **Ondo Global Markets** and its custodial/brokerage arrangements to hold the backing shares, operate correctly, and honor redemptions. Issuers/custodians may impose **transfer restrictions, freezes, blacklists, or redemption limits** for regulatory, compliance, commercial, or discretionary reasons. The value and stability of the underlying tokens depend on the adequacy and accessibility of those offchain reserves, which could fail, be mismanaged, be misrepresented, become illiquid, or prove insufficient. Redemption rights are Ondo's and are subject to Ondo's terms and applicable law.

### 13.6 Smart-contract and protocol risk

DTFs run on smart contracts, which may contain coding errors, design defects, or vulnerabilities that could cause exploits, malfunctions, or **total or partial loss of assets**, despite audits. The Reserve platform also depends on **third-party protocols, bridges, liquidity venues, and infrastructure** (e.g., DEXs, solver networks like CoW Swap, RFQ minters), any of which could fail, be exploited, or become unavailable.

### 13.7 Oracle, MEV, slippage, and execution risk

DTFs and their rebalances rely on pricing inputs and onchain execution. Faulty, stale, or manipulated price data could cause incorrect behavior. Transactions can be subject to **MEV** (front-running, sandwich attacks), slippage, failed or partial execution, and value extraction. You are responsible for your transaction settings, including slippage tolerances.

### 13.8 Governance risk

DTF governance powers are broad, so **governance attacks are possible** — e.g., an attacker who acquires enough voting power could approve a malicious change. Role-based safeguards (Guardian veto, timelocks, hard ceilings) mitigate this **only if** the role-holders act competently and in good faith. Because BUILDOUT's methodology and constituent selection are discretionary, governance/operator decisions directly shape what you own. Review who holds the roles on BUILDOUT's Details + Roles and Governance pages.

### 13.9 Frontend / interface and user-error risk

The **app.reserve.org** front-end is built and maintained by **Reserve (ABC Labs)** — not an unrelated third party — and relies on third-party services under the hood (e.g., Ondo, CoW Swap). Even so, any web front-end can contain bugs or be spoofed, compromised, censored, or unavailable, potentially inducing you to sign incorrect transactions or approve unintended permissions. **Verify URLs and contract addresses**, beware of imposter tokens that reuse the BUILDOUT ticker, use a self-custody wallet, and remember that onchain transactions are generally irreversible — user error (wrong address, wrong network, bad approval) can cause permanent loss.

### 13.10 Regulatory and eligibility risk

Tokenized equities and DTFs are novel and operate in an **evolving regulatory environment.** Rules can change, products can become restricted or unavailable in additional jurisdictions, and **BUILDOUT is already prohibited for US persons and others** (Section 11). You are responsible for your own legal and tax compliance.

### 13.11 Assumption of risk

Blockchain-based systems are inherently experimental and involve technological, legal, regulatory, and economic uncertainty. Identifying risks and implementing safeguards **does not eliminate the possibility of loss.** By using the Reserve platform and BUILDOUT, you assume all of these risks. **If you are unsure about any risk, do not use the product.**

---

## 14. About Reserve, RSR, and the people behind it

### 14.1 The Reserve project and its mission

Reserve describes itself as a long-term project guided by the belief that **"everyone should be able to own and earn their share of the world's wealth."** Its platform lets anyone hold and transfer an entire portfolio of tokenized assets as a single unit. The long-term vision is **asset-backed currency** — money backed by real, diversified assets rather than inflationary fiat — with DTFs as the building blocks: as more of the world's assets (stocks, bonds, commodities, real estate) get tokenized, DTFs can represent ever-broader slices of global wealth. The first product line is crypto/onchain baskets (for example, the CMC20 DTF, which tracks CoinMarketCap's top 20 cryptocurrencies by market cap, "like the S&P 500 but for crypto"); thematic equity baskets like BUILDOUT extend the same machinery to tokenized stocks.

### 14.2 The platform: Reserve app and the two protocols

The **Reserve app** (app.reserve.org, sometimes called "Reserve Register") is a permissionless decentralized application for creating, minting, redeeming, staking, vote-locking, and governing DTFs. Under it sit two open-source protocols: the **Index Protocol** (powering Index DTFs like BUILDOUT) and the **Yield Protocol** (powering Yield DTFs). Reserve has been operating since **2018** and reports backing from prominent technology investors including **Sam Altman and Peter Thiel**, and says it has spent millions on independent code audits — though, as with any DeFi app, you use it at your own risk.

### 14.3 RSR (Reserve Rights), the ecosystem token

**RSR** is the Reserve ecosystem's governance and value-accrual token (a fixed max supply of 100 billion; a majority is in circulation). It has three roles: (1) **vote-locking** on Index DTFs — RSR is the default governance token, and locking it confers voting power over basket changes, parameters, and upgrades, and a share of fees when a DTF enables revenue-sharing; (2) **staking** on Yield DTFs — providing first-loss overcollateralization in exchange for a share of yield; and (3) a **deflationary sink** — a portion of every Index DTF's mint and TVL fees (via the platform fee) is used to market-buy and burn RSR. **Note:** RSR is a separate token from BUILDOUT (its canonical contract on BNB Smart Chain is `0x23f72a3Db61D6CB8aBE5d9AF1Ac4B6c99327bFee`). Owning BUILDOUT does not require owning RSR, and this document is not a solicitation to buy RSR; it is mentioned because the platform fee on BUILDOUT contributes to RSR burns.

### 14.4 Who operates what

- **ABC Labs, LLC** operates reserve.org and app.reserve.org and leads protocol development. **ABC Labs is not a bank, broker-dealer, investment adviser, or other regulated financial intermediary, and is not registered with the SEC, CFTC, or any other financial regulator.** "Reserve" is a registered trademark of ABC Labs, LLC.
- **Best Friend Finance (BFF)** is the project's consumer-distribution arm (e.g., UGLYCASH).
- **Confusion Capital** funds and supports the broader Reserve ecosystem.
- **Ondo Global Markets** is the third-party issuer of the tokenized stocks BUILDOUT holds — a separate company with its own terms and eligibility rules.

### 14.5 Governance token note

BUILDOUT, like other Index DTFs, uses **RSR as its default governance token** via vote-locking unless configured otherwise. That means RSR vote-lockers (not BUILDOUT holders as such) govern BUILDOUT's parameters through the onchain process in Section 8.7.

### 14.6 RSR tokenomics in more depth (context)

For readers who want the detail (RSR is separate from BUILDOUT; this is background, not a solicitation): RSR has a **fixed maximum supply of 100 billion tokens**, with a majority in circulation and the remainder held in two project-controlled wallets with hard-coded delays. The **Slow Wallet** (team-controlled, funding ecosystem adoption) has a 4-week delay on each withdrawal. The **Slower Wallet** (administered by Confusion Capital) adds a throttle: **no more than 1% of total supply can be withdrawn in any 4-week period**, reducing trust requirements. Future RSR emissions follow a deterministic schedule that emulates Bitcoin's emissions curve. **Do not assume any change to RSR's supply, and do not assume any token burn.** From time to time the community discusses supply-reform ideas on the Reserve governance forum — for example, proposals to revise the RSR unlock/emissions plan, or speculative proposals to burn treasury RSR — but these are **discussion items only: they are not implemented, may never be, and should not be relied upon or expected.** Treat RSR's current supply (~100B max, ~62.5B circulating) as the basis, and follow the live conversation at **forum.reserve.org** (e.g., the RSR Unlocking Milestone Plan RFC, forum.reserve.org/t/rfc-rsr-unlocking-milestone-plan/1532) rather than assuming any particular outcome. RSR's value-accrual mechanism relevant to BUILDOUT is the **buy-and-burn**: the platform's portion of every Index DTF's mint and TVL fees is used to market-buy RSR and send it to a burn address, applying across all Index DTFs regardless of their chosen governance token.

### 14.7 Yield DTFs in brief (for contrast)

BUILDOUT is an *Index* DTF, but Reserve's other family — **Yield DTFs** — is worth understanding to avoid confusion. Yield DTFs hold yield-generating positions (e.g., lending or staking receipt tokens) and use **RSR staking as overcollateralization**: RSR stakers provide first-loss capital and earn a share of the DTF's yield, and can be **slashed** if a collateral asset defaults. This is a fundamentally different risk/reward structure from BUILDOUT, which holds tokenized equities, pays no yield, and does not use RSR overcollateralization. If you read about RSR "staking," "slashing," "first-loss capital," or "self-healing" during a depeg, that is Yield-DTF machinery and does **not** apply to BUILDOUT. BUILDOUT uses RSR only for **vote-locking governance** (Section 8.7), not for collateral protection.

### 14.8 The Reserve AI DTF Suite — the full set of five thematic DTFs

BUILDOUT is one of **five thematic AI DTFs** Reserve launched together as a suite, each a single token holding a market-cap-weighted basket of US-listed equities (via Ondo Global Markets tokenized stocks) for one slice of the AI build-out. They share the same wrapper, mechanics, fees, eligibility, and chain (**BNB Smart Chain**); they differ in theme, basket, cap, and minimum size. If BUILDOUT (the broad picks-and-shovels) isn't the slice you want, one of its siblings may be. The whole suite is the answer to "how do I get exposure to the AI infrastructure trade onchain": **BUILDOUT** is the broadest (the picks-and-shovels across all AI hardware), and **PHOTON / POWER / NEOCLOUD / ROBOTS** are focused specialist cuts.

| DTF | Ticker | Theme (one line) | Constituents | Weighting | Min mkt cap | Aggregate (illustrative) | Contract (BSC) |
|---|---|---|---|---|---|---|---|
| **AI Infrastructure** | `BUILDOUT` *(this doc)* | The picks & shovels of the AI build-out — the 25 largest US-listed semiconductor, memory, equipment, networking & power names | 25 (top by mkt cap) | Mkt-cap, **10% cap** | — (top 25) | ~$16.7T | `0xd7ce7a841310982acd976d1a6fe7bb6063c5689d` |
| **AI Power** | `POWER` | The companies that generate, move & condition the electricity behind AI — turbines, nuclear, grid/electrical gear, power chips | 13 | Mkt-cap, 20% cap | ~$10B | ~$1.02T | `0x290bCc0Fd5096cC3261AE2021841c7BC67Cb0f51` |
| **Robotics** | `ROBOTS` | AI stepping off the screen into the physical world — humanoids, surgical robots, factory/warehouse automation, lidar, vision, autonomy | 9 | Mkt-cap, 20% cap | ~$2B | ~$272B | `0x75617e7653f86f074cc30b9fd4ebf52ba9b62247` |
| **AI Capacity & Neocloud** | `NEOCLOUD` | The neoclouds & power-rich operators that raise capital, secure power & rent out AI compute by the hour | 8 | Mkt-cap, 20% cap | ~$5B | ~$206B | `0xf571Fe3F0d74521Bc7310B111Faea931C748f27B` |
| **AI Photonics** | `PHOTON` | Light replacing copper inside AI — fiber, lasers, transceivers & optical chips | 9 | Mkt-cap, 20% cap | ~$5B | ~$456B | `0xa0fe4e0aeca5479705ce996615b2eacb6b6a10fb` |

**The macro forecast behind each theme** *(each is a third-party estimate of industry size — inherently uncertain, and **not** a projection or guarantee of any DTF's performance; see Section 13):*

- **BUILDOUT** — global semiconductor sales ~$796B (2025) → ~$1.5T (2026E), memory-led (WSTS, Spring 2026).
- **POWER** — US data-center power ~32 GW (2025) → ~95 GW (2030), ≈3× (Goldman Sachs Research).
- **ROBOTS** — humanoid-robot market ≈$5T by 2050 (Morgan Stanley); a more conservative ~$38B by 2035 (Goldman Sachs).
- **NEOCLOUD** — neocloud / GPU-cloud market ~$35B (2026) → ~$180B+ (2030), ≈5× (Mordor Intelligence sizes 2026 at ~$35B; Synergy Research forecasts ~$180B by 2030).
- **PHOTON** — AI data-center optical spend ~$15B/yr (2026) → ~$154B/yr (2028), ≈10× (Goldman Sachs Research).

**What's identical across the suite:** Index DTFs on BNB Smart Chain; underlyings are Ondo Global Markets tokenized US stocks (each backed 1:1 by a real share in a regulated US brokerage account); market-cap weighting with a per-name cap; **quarterly** rebalance via onchain Dutch auctions; **0.3% mint fee + 0.6% annual TVL fee** (plus the platform fee / RSR burn); permissionless onchain mint/redeem; buy/sell via the app's zapper using BNB, WBNB, USDT, or other supported tokens on **app.reserve.org**; and the **same eligibility rules set by Ondo** (not for US persons / sanctioned jurisdictions; accredited-only in several others). **The same risks apply to every DTF in the suite** — each is a concentrated, single-theme basket of experimental tokenized assets that can lose value entirely (Section 13). Each DTF has its own long-form reference document like this one; for the authoritative, live details on any of them, go to **app.reserve.org**.

### 14.9 Official Reserve links and channels

These are Reserve's official destinations. To avoid scams and imposters, verify any link or contract against this list before acting. **Reserve does not operate a Discord server** — anything claiming to be an official Reserve Discord is fake.

- **App (buy / sell / redeem / govern):** https://app.reserve.org
- **Website:** https://reserve.org
- **Documentation:** https://docs.reserve.org (machine-readable index: https://docs.reserve.org/llms.txt)
- **Terms & risk disclosures:** https://reserve.org/terms_and_conditions
- **X (Twitter):** https://x.com/reserveprotocol
- **Telegram:** https://t.me/reservecurrency
- **YouTube:** https://www.youtube.com/@reserveprotocol
- **GitHub (open-source contracts & audits):** https://github.com/reserve-protocol/
- **BUILDOUT token (BNB Smart Chain):** `0xd7ce7a841310982acd976d1a6fe7bb6063c5689d` — verify at https://bscscan.com/token/0xd7ce7a841310982acd976d1a6fe7bb6063c5689d
- **RSR token (BNB Smart Chain):** `0x23f72a3Db61D6CB8aBE5d9AF1Ac4B6c99327bFee`

Reminder: BUILDOUT is **not** offered to US persons or in sanctioned jurisdictions; always transact via app.reserve.org and double-check contract addresses against this list.

---

## 15. Conflicts of interest and disclosures

In the interest of the same candor Reserve applies to its own marketing, the material conflicts and structural facts a reader should weigh:

- **Self-indexed / discretionary selection.** BUILDOUT does **not** track an independent third-party index. The party operating the DTF **defines the methodology and selects the constituents** (within the published rules). That discretion is a conflict of interest and a source of governance/operator risk.
- **Operator benefits from usage.** ABC Labs/Reserve **operates the platform and benefits from DTF usage** (fees, RSR buy-and-burn). The more BUILDOUT is used, the more the operator and RSR holders benefit — an incentive to promote it.
- **Dependence on a third-party issuer (Ondo).** BUILDOUT's underlyings are **Ondo Global Markets** tokenized stocks, so BUILDOUT depends on Ondo's tokens, eligibility rules, and redemption terms. Reserve/ABC Labs and Ondo are separate, independent entities and there is **no formal partnership** between them; this dependence is itself a risk to be aware of (Section 13.5).
- **RSR promotion.** Reserve materials promote the RSR governance token, which benefits from platform usage including BUILDOUT.
- **Not independent research.** This document is a Reserve-aligned reference, generated by an LLM from Reserve's materials and public sources. It is **not** independent investment research, and it is **not** advice. Treat its framing of the thesis as the proponent's case, balanced where possible, and do your own diligence.

---

## 16. Glossary

- **Advanced packaging (CoWoS)** — the technology (e.g., TSMC's CoWoS) that combines a logic die with stacked memory in one package; a key 2025–2026 bottleneck in AI-chip manufacturing.
- **AI accelerator** — a chip specialized for the matrix math of AI; includes GPUs (Nvidia, AMD) and custom ASICs/XPUs.
- **ASIC / XPU** — an application-specific integrated circuit; custom AI silicon co-designed for a specific buyer (e.g., hyperscaler chips built with Broadcom or Marvell).
- **Basket** — the set of underlying tokens a DTF holds; for BUILDOUT, 25 tokenized US-listed AI-hardware stocks.
- **CoW Swap** — a solver/DEX network integrated as a "Trusted Filler" for Reserve Index DTF rebalance auctions, sourcing deep liquidity for onchain rebalances.
- **PancakeSwap X** — PancakeSwap's trading engine that aggregates third-party liquidity for better prices, with gas-free and MEV-protected swaps; it powers swaps on PancakeSwap, and on BNB Chain it supports real-world assets (RWAs) — the category these DTFs fall into. Docs: docs.pancakeswap.finance/trade/pancakeswap-x.
- **CPU / IP** — the central processor and the licensed processor designs/architecture it is built on; Arm (ARM) is the basket's CPU-IP exposure.
- **DTF (Decentralized Token Fund; formerly "Folio")** — a fully asset-backed ERC-20 token created with Reserve's contracts that represents a basket of underlying tokens; mint/redeemable and governed permissionlessly onchain. BUILDOUT is an **Index DTF**.
- **Dutch auction** — the declining-price auction mechanism Reserve uses to rebalance DTF baskets onchain.
- **EEA (European Economic Area)** — the EU member states plus Iceland, Liechtenstein, and Norway. In these docs it appears as a "restricted" jurisdiction where the DTFs are available only to approved accredited/professional investors.
- **ERC-20** — the standard token interface on Ethereum-compatible blockchains; BUILDOUT and its underlyings are ERC-20 tokens.
- **EUV (extreme ultraviolet lithography)** — the lithography technology, monopolized by ASML, required to print leading-edge chip features; **High-NA EUV** is its next generation.
- **Foundry** — a company that fabricates chips designed by others (e.g., TSMC); an **IDM** (integrated device manufacturer, e.g., Intel) both designs and makes chips.
- **HBM (high-bandwidth memory)** — stacked DRAM placed beside an AI accelerator to feed it data at very high bandwidth; central to the 2025–2026 memory supercycle. Micron (MU) is the basket's HBM exposure.
- **Index DTF** — a DTF that holds a diversified basket and charges mint + TVL fees (vs. a Yield DTF, which pursues yield). BUILDOUT is one.
- **Memory supercycle** — the 2025–2026 period of acute memory (DRAM/HBM/NAND) shortage and rising prices driven by AI demand.
- **Mint / redeem** — creating new DTF tokens by depositing the basket (mint) or burning DTF tokens to receive the basket (redeem), at NAV, permissionlessly.
- **NAND flash** — non-volatile storage memory used for SSDs that hold AI datasets and model weights; SanDisk (SNDK) is the basket's NAND exposure.
- **NAV (Net Asset Value)** — the combined value of a DTF's underlying tokens; the basis for its price.
- **Ondo Global Markets** — the third-party issuer of the tokenized US stocks BUILDOUT holds, each backed 1:1 by a real share in a regulated US brokerage account.
- **Picks and shovels** — the supplier/infrastructure layer of a boom (here, AI hardware) that gets paid regardless of which end-application wins; the organizing idea of BUILDOUT.
- **RFQ / intent system** — the mechanism used to mint/redeem DTFs whose underlyings (like Ondo tokens) are offchain-liquid; approved minters source the basket tokens.
- **RSR (Reserve Rights)** — the Reserve ecosystem token used for governance (vote-locking/staking) and value accrual (fee-funded buy-and-burn). BUILDOUT's default governance token. Separate from BUILDOUT. Canonical RSR on BNB Smart Chain: `0x23f72a3Db61D6CB8aBE5d9AF1Ac4B6c99327bFee`.
- **vlRSR (vote-locked RSR)** — the form RSR takes when locked to a DTF for governance; vlRSR holders are the DTF's **governors** and earn a share of the DTF's fees (on these BSC DTFs, the ~67% of fees remaining after the 33% platform share, auto-converted to RSR as an up-only vlRSR/RSR exchange rate). On BNB-Chain DTFs, RSR must be bridged to BNB Chain (e.g., via Wormhole) before vote-locking.
- **RToken** — the older technical name for any token launched on Reserve; synonymous with DTF.
- **TVL fee** — the continuous (block-by-block) management fee on a DTF's assets; 0.6%/yr for BUILDOUT.
- **Vote-locking** — committing a governance token (RSR by default) to an Index DTF for voting power (and a fee share when enabled).
- **WFE (wafer-fab equipment)** — the machines used to fabricate chips (lithography, etch, deposition, process control); ASML, Applied Materials, Lam Research, and KLA are the basket's WFE exposure.
- **Zapper** — the Reserve app helper that lets you enter or exit a DTF using a single token of your choice (BNB, WBNB, USDT, or other supported tokens) in one atomic transaction, handling all the swaps and the mint/redeem behind the scenes.

---

## 17. Frequently asked questions

**Q: What is BUILDOUT in one sentence?**
A: BUILDOUT is an onchain token (a Decentralized Token Fund) that holds a weighted basket of the 25 largest US-listed "AI infrastructure" companies — the chips, memory, manufacturing equipment, networking, and power that the AI buildout runs on — redeemable onchain for tokenized stocks.

**Q: Is BUILDOUT an ETF?**
A: No. BUILDOUT is **ETF-like** in spirit (a single token tracking a basket) but it is **not an ETF and is not regulated like one.** It is not a registered investment product, not a deposit, and not FDIC/SIPC-insured.

**Q: What does BUILDOUT actually hold?**
A: Tokenized versions of 25 US-listed stocks — issued by Ondo Global Markets — each backed 1:1 by a real share held in a regulated US brokerage account. The 25 (June 2026): Nvidia (NVDA), TSMC (TSM), Broadcom (AVGO), Micron (MU), AMD (AMD), ASML (ASML), Intel (INTC), Lam Research (LRCX), Applied Materials (AMAT), Arm (ARM), KLA (KLAC), SanDisk (SNDK), GE Vernova (GEV), Dell (DELL), IBM (IBM), Marvell (MRVL), Arista (ANET), Eaton (ETN), Corning (GLW), Vertiv (VRT), Quanta Services (PWR), Constellation Energy (CEG), Bloom Energy (BE), Coherent (COHR), and Lumentum (LITE).

**Q: What's the difference between BUILDOUT and the other Reserve AI DTFs?**
A: BUILDOUT is the **broadest** — it owns the picks-and-shovels across *all* of AI hardware (compute, memory, manufacturing, networking, and power). The sibling DTFs are focused specialist cuts of the same buildout: PHOTON (the optical layer), POWER (the energy layer), NEOCLOUD (GPU-cloud capacity operators), and ROBOTS (physical robotics). Same wrapper and machinery, narrower baskets. Several names overlap — the optical trio (GLW/COHR/LITE) are PHOTON's top holdings, and the power names (GEV/ETN/VRT/PWR/CEG/BE) are in POWER — but BUILDOUT holds them at small weight as part of the diversified whole.

**Q: Why does it hold power companies like Constellation and Bloom Energy alongside chipmakers?**
A: Because **power is part of the AI hardware buildout.** The thesis is that every AI dollar flows through five layers — compute, memory, manufacturing, networking, and power — and the electricity layer (generation, grid, electrical gear, data-center power and cooling) is widely described as the next binding constraint. BUILDOUT owns all five layers so it holds whichever is the current bottleneck.

**Q: How are the weights decided?**
A: Market-capitalization weighting with a **10% cap** per name, applied to the 25 largest companies that meet the criteria (US-listed, Ondo-eligible, significant AI-hardware-buildout revenue). Reset quarterly. BUILDOUT does **not** track a third-party index; selection is rules-based but discretionary.

**Q: Why a 10% cap when other Reserve AI DTFs use 20%?**
A: Because BUILDOUT has more names (25) and its largest constituents (Nvidia, TSMC, Broadcom, Micron) are extraordinarily large. A tighter 10% cap forces more diversification across the basket and prevents the few mega-caps from dominating even more than they already do.

**Q: How concentrated is it?**
A: Concentrated, though less than a 20%-cap DTF. The **top four (Nvidia, TSMC, Broadcom, Micron) each sit at the 10% cap, ~40% combined.** It remains a concentrated, single-theme basket and may be more volatile than a diversified fund.

**Q: How often does it rebalance?**
A: Quarterly. At each rebalance, names that dropped out of the top 25 (or no longer qualify) are removed, new top-25 qualifiers may be added, and weights reset to capped market-cap weights — executed onchain via Dutch auctions.

**Q: What are the fees?**
A: A **0.3% mint fee** and a **0.6% annual TVL (management) fee.** A protocol platform fee is taken out of those and used to buy and burn RSR. Onchain gas, exchange spreads/slippage, dust, and Ondo mint/redeem terms also apply.

**Q: Are there minimums or maximums?**
A: No minimum or maximum purchase size.

**Q: How do I buy it?**
A: On app.reserve.org — connect a wallet, click Buy, and pay with a supported token (BNB, WBNB, USDT, etc.) via the zapper — or on **PancakeSwap** (BNB Chain) via **PancakeSwap X** — gas-free and MEV-protected; on BNB Chain, PancakeSwap X supports real-world assets like these DTFs. You must be in an eligible jurisdiction.

**Q: Can I buy it in the United States?**
A: **No.** BUILDOUT is prohibited for US persons (and US territories, Canada, and sanctioned jurisdictions). Several other places (UK, EEA, Switzerland, Singapore, Hong Kong, Malaysia, Brazil) allow it only for accredited/professional investors. Eligibility is set by Ondo.

**Q: Who decides eligibility?**
A: Ondo Global Markets, the issuer of the underlying tokenized stocks. See docs.ondo.finance/ondo-global-markets/eligibility.

**Q: I'm in a restricted jurisdiction (e.g., UK, EEA, Brazil) — how do I get approved?**
A: You can apply. In restricted jurisdictions you submit a request to be verified as an accredited/professional investor (through the app) and complete the required verification; approvals are processed by Reserve, potentially with the help of a third-party accreditation provider.

**Q: How can a "decentralized" token be restricted by country? Doesn't that require KYC, which would make it centralized?**
A: This mixes up two layers. **(1) The token/protocol layer is decentralized:** BUILDOUT is a permissionless ERC-20 on BNB Chain — the contracts are open-source and governed onchain, anyone can mint or redeem at the value of the underlying, no central party can seize or freeze the token in your wallet, and you can always redeem onchain for the underlying assets without permission. **(2) The restriction lives one layer down, in what BUILDOUT holds:** Ondo Global Markets tokenized stocks, each backed 1:1 by a real share in a regulated US brokerage account. Because those are actual securities, their issuer (Ondo) applies eligibility rules and transfer permissioning to comply with securities law — so "not available in country X" is set by **Ondo, the issuer of the underlying**, not by Reserve and not because the DTF is "centralized." **And it is not enforced by KYC on the token:** the basic access gate on app.reserve.org is a **wallet self-attestation** (you tick boxes confirming eligibility), tied only to your wallet address and never your personal info — Reserve does not collect or store identity documents for it. Only if you are in a *restricted* jurisdiction and want to qualify as an accredited/professional investor is there an optional verification step. In short: **the DTF wrapper is decentralized; the real-world asset it wraps carries the compliance perimeter of the real security behind it.** That is the tradeoff of tokenizing regulated assets — a real share behind every token, and the issuer's eligibility rules riding along with it. (The flip side, disclosed in Section 13.5: because it wraps Ondo's tokenized stock, you take on Ondo as an issuer — decentralized at the protocol layer, but the real-world-asset layer is not trustless.)

**Q: What gives BUILDOUT its value / how is it priced?**
A: Its price is based on the **NAV** of its underlying tokenized stocks. Because anyone can mint/redeem at NAV onchain, arbitrage keeps the market price close to the value of the basket — though deviations can occur.

**Q: What's the difference between buying BUILDOUT and redeeming it?**
A: Most people **buy/sell** BUILDOUT through the zapper using whatever supported token they hold (BNB, WBNB, USDT, etc.). **Redeeming** burns BUILDOUT for the underlying Ondo tokenized stocks onchain — the permissionless escape hatch that means you don't depend on any single app or counterparty to exit.

**Q: Why does BUILDOUT use Ondo tokens instead of holding stocks directly?**
A: Real US-listed shares can't live on a blockchain directly; Ondo's tokenized stocks (backed 1:1 by real shares) are the bridge that lets equities be bundled and traded onchain 24/7.

**Q: Does BUILDOUT pay dividends or yield?**
A: No. BUILDOUT is not a yield product. The TVL fee is a cost, not a payout. (How dividends on underlying shares are handled is governed by Ondo's terms for the tokenized stocks; do not assume any distribution.)

**Q: Can BUILDOUT's price differ from the underlying stocks?**
A: Yes. Weights drift between rebalances, the equities trade only in US market hours while the token trades 24/7, and the underlying tokens are offchain-liquid — so deviations from NAV/underlying prices can happen.

**Q: What happens if the Reserve app goes down?**
A: The contracts remain callable. You can redeem BUILDOUT for its underlying tokens by direct contract call, independent of the front-end.

**Q: Is it safe? Has it been audited?**
A: Reserve's contracts have had multiple independent audits, and core changes require timelocked onchain governance. But **no audit eliminates all risk**; smart-contract bugs, governance attacks, oracle/MEV issues, issuer/custodian failures, and total loss are all possible. Use at your own risk.

**Q: What is the single biggest risk?**
A: That it's a concentrated, experimental, single-theme basket of tokenized assets that **can lose value entirely** — compounded by the possibility that the AI-capex spending driving the whole theme is cyclical or a bubble, semiconductor/memory cyclicality, tokenized-equity issuer/custodian risk, and smart-contract risk.

**Q: Is the "$796B → $1.5T semiconductor market" forecast a prediction of BUILDOUT's return?**
A: **No.** That figure is **WSTS's (Spring 2026) estimate of total global semiconductor market size (2025 → 2026E)** — a third-party estimate of industry size that is inherently uncertain and is **not** a projection or guarantee of BUILDOUT's performance. Industry growth does not equal token returns.

**Q: Isn't this just the same as buying Nvidia?**
A: No. Nvidia is the single largest holding (at the 10% cap), but it is only ~10% of the basket. BUILDOUT deliberately spreads across 25 names and five layers (compute, memory, manufacturing, networking, power) so you own the whole buildout rather than one company. That diversifies single-company risk but keeps full exposure to the AI-hardware theme.

**Q: Why are some big AI-hardware names (e.g., certain Asian memory or equipment makers) missing?**
A: Because the basket can only hold **US-listed** companies that Ondo can tokenize today. Globally important suppliers that trade only on non-US exchanges cannot currently be included — a structural limitation, not a judgment about their importance.

**Q: Did Nvidia really invest across the supply chain?**
A: Nvidia has made strategic investments and partnerships across the AI ecosystem in 2025–2026, including reported **$2B investments in each of Coherent and Lumentum** (optical) and a **partnership with Corning** for US fiber/optical manufacturing — three names BUILDOUT holds. These are reported facts about the companies, not endorsements of BUILDOUT.

**Q: What is RSR, and do I need it to hold BUILDOUT?**
A: RSR (Reserve Rights) is the ecosystem's governance/value token. You do **not** need RSR to hold BUILDOUT. RSR vote-lockers govern Index DTFs, and BUILDOUT's platform fee funds RSR buy-and-burn — but BUILDOUT and RSR are separate tokens.

**Q: Can I "stake" RSR on BUILDOUT to earn yield or to insure it?**
A: No — not in the Yield-DTF sense. BUILDOUT is an **Index DTF**, so you **cannot** stake RSR as first-loss collateral/insurance, and there is no staking reward for absorbing risk (that exists only on Reserve **Yield DTFs**). What you *can* do is **vote-lock** RSR to BUILDOUT to become a **governor** — your locked balance shows as **vlRSR** — and help govern the DTF. vlRSR governors earn a share of the DTF's fees — for these BSC DTFs, the ~67% of fees remaining after the 33% platform share is routed to vlRSR governance and auto-converted to RSR (accruing as an up-only vlRSR/RSR exchange rate, no manual claiming); verify the live split in the app. Because BUILDOUT is on **BNB Smart Chain**, you must bridge your RSR to BNB Chain (e.g., via Wormhole) to vote-lock — the canonical RSR on BNB Smart Chain is `0x23f72a3Db61D6CB8aBE5d9AF1Ac4B6c99327bFee`. Note: **vote-locking has no geographic restrictions** (unlike buying the DTF). See Section 8.9.

**Q: Who runs Reserve?**
A: reserve.org and app.reserve.org are operated by **ABC Labs, LLC**, which is not a regulated financial intermediary and is not registered with the SEC/CFTC. The protocol is open-source and governed onchain.

**Q: What blockchain does BUILDOUT run on, and what's the contract address?**
A: BUILDOUT is deployed on **BNB Smart Chain (BSC)** at `0xd7ce7a841310982acd976d1a6fe7bb6063c5689d`. Its underlying Ondo tokenized stocks are also BSC tokens. PancakeSwap (a BSC DEX) is a primary trading venue. Reserve's Index Protocol also runs on Ethereum and Base, but BUILDOUT's home chain is BSC. Always confirm the address on app.reserve.org / bscscan.com and beware of imposter tokens reusing the ticker.

**Q: Can the basket change?**
A: Yes — quarterly. Names can be added or removed and weights reset. The 25 listed here are the June 2026 composition, not permanent.

**Q: Is this document official Reserve documentation?**
A: It is an **LLM-generated reference** compiled from Reserve's materials and public sources, intended for the BUILDOUT page and for AI assistants. The authoritative sources are app.reserve.org, docs.reserve.org, and reserve.org/terms_and_conditions; where they differ from this document, **they control.**

---

## 18. Sources and full legal disclaimer

### 18.1 Primary sources

- **Reserve documentation** — https://docs.reserve.org (Introduction, How it works, Index DTFs Overview/Pricing/Minting & redeeming/Rebalancing/Fees/Roles, RSR, Risks, FAQ).
- **Reserve app** — https://app.reserve.org (live composition, contract addresses, roles, governance).
- **Reserve terms** — https://reserve.org/terms_and_conditions.
- **Ondo Global Markets eligibility** — https://docs.ondo.finance/ondo-global-markets/eligibility.
- **Official BUILDOUT tear sheet** — Reserve AI Infrastructure DTF one-pager (June 2026), a canonical source for the thesis, fees, and disclosures summarized here.
- **Reserve Thematic AI DTFs reference sheet** ("[PRIVATE] Reserve Thematic AI DTFs," data as of June 17, 2026) — the canonical source for BUILDOUT's BSC contract address (`0xd7ce7a841310982acd976d1a6fe7bb6063c5689d`), the constituent weights/market caps, and the underlying Ondo token (BSC) addresses listed in Section 5.
- **BscScan** — https://bscscan.com/token/0xd7ce7a841310982acd976d1a6fe7bb6063c5689d (onchain BUILDOUT token + contract).

### 18.2 Third-party information cited for industry context (not forecasts of BUILDOUT)

- World Semiconductor Trade Statistics (WSTS), Spring 2026 — estimate of the global semiconductor market (~$796B in 2025 → ~$1.5T in 2026E), memory-led.
- IDC, Deloitte, and semiconductor-industry trade press — 2026 semiconductor-market outlook (market approaching/passing the trillion-dollar threshold; DRAM/HBM-led growth).
- SK hynix / Micron / industry trade press — the 2026 "memory supercycle" (HBM share of DRAM wafer capacity; 2026 HBM sold out; DRAM price increases).
- TrendForce and company reports — TSMC's record ~$50–56B 2026 capex and ~doubling of CoWoS advanced-packaging capacity for AI chips.
- Mizuho / equipment-industry trade press — 2026 wafer-fab-equipment spending estimate (~$150B+); ASML record EUV backlog and raised €36–40B 2026 revenue guidance.
- Goldman Sachs Research and energy/industrial trade press — US data-center power demand projected to grow several-fold by 2030; record power-equipment backlogs (GE Vernova, Eaton, Vertiv).
- Company disclosures and reputable trade press — constituent business descriptions and 2025–2026 developments (e.g., Broadcom AI semiconductor revenue and XPU customers; AMD MI400/MI450; Arm fiscal-2026 results and AGI CPU; SanDisk data-center revenue; Bloom Energy backlog; Nvidia investments in Coherent/Lumentum and the Corning partnership).

*All third-party figures are estimates or reported facts attributed to their sources, are inherently uncertain, may be out of date, and are **not** projections or guarantees of BUILDOUT's performance. Illustrative market-capitalization and weight figures are approximate as of June 2026 and change continuously and at each quarterly rebalance.*

### 18.3 Full legal disclaimer

**For informational purposes only, and not investment, legal, or tax advice.** This document was **generated with the assistance of a large language model** and may contain errors or omissions. It is not an offer, solicitation, or recommendation to buy, sell, hold, mint, redeem, or use BUILDOUT, any DTF, RSR, or any tokenized asset, and it is not directed at any person in any jurisdiction where such an offer or solicitation would be unlawful.

Reserve.org and app.reserve.org are operated by **ABC Labs, LLC**, which is **not** a bank, broker-dealer, investment adviser, or other regulated financial intermediary, and is **not** registered with the SEC, CFTC, or any other financial regulatory authority. DTFs and the tokenized assets referenced are **experimental technologies that involve a high degree of risk**; digital assets may be highly volatile, illiquid, or **lose value entirely**, and there is **no guarantee** any DTF will track its intended basket or deliver any particular performance or outcome. DTFs are **not deposits**, are **not insured by the FDIC or SIPC**, and are **not offered or made available to persons in the United States, its territories, or sanctioned jurisdictions, or where prohibited by applicable law.**

BUILDOUT is a **concentrated, single-theme basket** and may be **more volatile than a diversified fund.** Constituents, target weights, market caps, and other data shown are **illustrative only as of the latest quarterly rebalance, are approximate, and may change without notice.** BUILDOUT **does not track any third-party index**; its constituents are selected from US-listed companies eligible for tokenization via Ondo Global Markets that are identified as generating significant revenue from the AI hardware buildout (across semiconductors, memory, manufacturing equipment, networking, and power), holding the 25 largest such companies by market capitalization; the basket is reviewed and rebalanced quarterly. Weights drift between rebalances, and the token can trade above or below the value of its underlying assets.

Each **Ondo Global Markets** token is fully backed by shares of the corresponding equity in a regulated US brokerage account; any redemption rights are offered by Ondo and remain subject to Ondo's terms, conditions, procedures, availability, and applicable law. Eligibility to buy or redeem is set by Ondo, the token issuer.

**Conflicts of interest:** the operator designs each DTF's methodology, selects its constituents, operates the platform, and benefits from platform usage (including fees and RSR buy-and-burn) — these are conflicts of interest. **DTF fees** are 0.3% mint + 0.6% annual TVL; onchain gas, exchange spreads, and Ondo mint/redeem terms also apply.

The third-party market-size forecasts referenced (WSTS and others) are estimates of industry size, are inherently uncertain, and are **not** projections or guarantees of fund performance. **"Reserve" is a registered trademark of ABC Labs, LLC.** Full terms, eligibility criteria, and risk disclosures apply and are available at **reserve.org/terms_and_conditions.** Where this document conflicts with Reserve's official sources, the official sources control. © ABC Labs, LLC.

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*Document type: LLM-generated reference for the Reserve AI Infrastructure DTF ($BUILDOUT). Document version 0.6 · Compiled by starl3xx, with LLM assistance · Data as of June 2026. This is a living document and one of the Reserve AI DTF suite (BUILDOUT, POWER, NEOCLOUD, ROBOTS, PHOTON). Verify everything on app.reserve.org before acting.*