> ## Documentation Index
> Fetch the complete documentation index at: https://docs.cargotrading.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Introduction to Cargo Finance

> Who is behind Cargo Finance, who takes part in a Cargo vault, and where a receipted real-world asset fits between DeFi and the physical trade.

Cargo Finance funds the physical trade in real-world assets against the goods themselves, and puts the result on-chain as vaults. Repayment is the sale of the goods, not a refinancing and not a new investor.

## Who Does What

Every vault has the same roles. The right-hand column shows the Genesis Vault (West African Grade 1 cocoa).

| Role | What It Does | In the Genesis Vault |
| :- | :- | :- |
| Vault SPV | Issuer and owner of the goods; bankruptcy-remote, limited recourse | Dedicated Vault SPV |
| Sponsor | Sets up and sponsors each vault | The sponsor, named in the term sheet |
| Originator and operator | Buys the goods, delivers them into custody, keeps 10% first loss | The sponsor's operating company |
| Collateral manager | Independent controller of the warehouse; sole release authority | Independent inspector controlling an approved bonded warehouse |
| Stock verification | Weighs and grades each lot | Vallis |
| Security agent | Holds one pledge for all holders | Named on signing |
| Market makers and APs | Create, redeem and quote vault shares against USDC | Panel firms |
| Liquidity Bridge LPs | Fund instant exits at NAV − 1.0% | Panel LPs |
| Additional originators | Approved producers, exporters or dealers that list receipted lots | Licensed cocoa exporters and cooperatives |
| Holders | Eligible non-US professional and institutional investors, KYC'd and whitelisted | Same for every vault |

The trustee, bank and auditor for each vault are named on signing.

## Three Ways In

> [card] Allocators: Own the Asset
>
> Buy shares below NAV and hold them, or rotate the auction discount every batch.

> [card] Market Makers and LPs
>
> Quote each pair, bridge exits, and later lend against the shares. NAV is arbitrageable and hedgeable.

> [card] Speculators: Trade the View
>
> Derivatives on NAV on third-party venues that license our data. The vault never takes the other side.

## Where Cargo Fits in DeFi

On-chain warehouse lending is proven: in July 2026, Grove committed a \$500 million senior secured warehouse facility to Galaxy, funded on-chain. But the collateral there, as in almost every on-chain credit vault of scale, is BTC and ETH, so the yield is still a claim on crypto price risk. Cargo's collateral is a physical unit of a real asset (a kilogram of cocoa, a tonne of sugar, an ounce of gold) with a receipt, a pledge, an inspector and a daily exchange price. Its return comes from the physical spread, not from leverage or incentive schemes.

## Track Record

> [card] 1,020 Tonnes, One Full Cycle
>
> Before the Genesis Vault opened, the originator bought 1,020 t of West African Grade 1 cocoa in June 2026, then shipped and sold it on 14 July 2026, priced against ICE London Cocoa.


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