Transfer Types

There are two types of transfers you can perform:

• Direct Transfers: they are the most simple and straightforward type of transfer, allowing investors to send security tokens to any qualified recipient. Issuers are able to define specific approval criteria and automate the management of transfer conditions, ensuring compliance and security for tokens by requiring intermediate approvals in a specific order, from designated parties. Upon last approval, the transfer is executed and TREX tokens are transferred from sender from recipient.
• Swap Transfers: they are mostly used in the secondary market. The transfer is executed and the tokens are swapped from both involved parties, ensuring a secure and reliable transfer. Investors can swap ERC3643 tokens against another token (such as ERC-20, ERC-3643, stablecoins, etc.) between elegible investors, ensuring needed truest between the involved parties with the DvD smart contract that acts as the intermediary.

When configuring the transfers, when the transfer fee is enabled for a TREX token, the transfer fees compliance module will take a fee on the recipient of a transfer on any transfer involving the TREX token. The fee amount is added on top of the amount transferred.

Here you can see explained how the fees work for both, conditional and swap transfers:

• For Conditional Transfers: the fees will be taken from both, sender and recipient.
• For Swap Transfers:
  • If the swap is between TREX and ERC-20 tokens, the fee will be taken from the counterpart receiving the TREX token.
  • If the swap is between two ERC-3643 tokens, called TREX1 and TREX2, and only TREX1 has fees enabled, the fee will be taken from the counterpart receiving the TREX1 token.
  • If the swap is between two ERC-3643 tokens, called TREX1 and TREX2, and both tokens have fees enabled, fees will be taken from both counterparts, one for receiving the TREX1 token and the other for receiving the TREX2 token.
  • Finally, the DvD smart contract is supporting fees in its own. So if fees are configured at DvD level, fees should not be configured, to avoid duplication.