During the Tenor

The tenor is the period between when you buy a bond and when it matures. Here's what happens — and what you can do.

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What Is the Tenor?

Tenor = time from sale completion to maturity date

For example, a 12-month bond has a 12-month tenor. During this time, your Note is waiting to be redeemed, and your Warrant is live.

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Your Options During the Tenor

Instrument	What You Can Do
Note NFT	Hold, sell, or transfer
Warrant NFT	Hold, sell, transfer, or exercise

You're not locked in. Both NFTs are fully tradeable throughout the tenor.

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Exercising Your Warrant

You can exercise your Warrant anytime before expiry — you don't have to wait for maturity.

You decide to exercise
        │
        ▼
Pay strike price in USDT
        │
        ▼
Receive $MSTR tokens

When to exercise:

• $MSTR price is above your strike price

• You want $MSTR now rather than later

• You believe $MSTR won't go much higher

When to wait:

• You think $MSTR will rise further

• You prefer to sell the Warrant instead

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What Happens to Warrant Exercise Proceeds?

When any Warrant holder exercises:

1. They pay USDT to the protocol

2. USDT is converted to BTC

3. BTC is added to the series proceeds

This grows the pool available to repay Note holders at maturity.

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Trading Your NFTs

Both Notes and Warrants trade on secondary markets.

Note NFT pricing factors:

• Time to maturity

• Series health (proceeds vs. obligations)

• Market demand

Warrant NFT pricing factors:

• Current $MSTR price vs. strike price

• Time to expiry

• $MSTR volatility expectations

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Example: Active Management

Hannah buys a USD bond and receives a Note + Warrant.

Month 3: $MSTR spikes. Hannah sells her Warrant for a quick profit.

Month 6: Hannah needs cash. She sells her Note at a small discount.

Hannah exited both positions before maturity — totally fine.

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Example: Hold Everything

Ivan buys a BTC bond and receives a Note + Warrant.

Entire tenor: Ivan does nothing. He holds both NFTs.

At maturity: Ivan redeems his Note for BTC and exercises his Warrant for $MSTR.

Ivan waited it out — also totally fine.

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Next: Maturity & Settlement — what happens when the bond matures.