Instrument 02 · Design locked · In development
CS2. The anchored treasury claim.
CS2 keeps the treasury-claim model and adds the structural guarantees CS1's minimalism omits: redemption that anchors price to backing, minting that is exactly neutral, a fee schedule that only steps down, and a wind-down that cannot strand a single holder. Every clause is enforced by structure rather than trust.
CS2 has no live figures because CS2 is not live. These are locked design parameters. The genesis NAV of $1.00 is the only priced-by-fiat event in the system's life; every subsequent value on this band will be a posted NAV, published after each daily strike.
The governing equation
CS2 prices the claim net of fees. Published NAV is always already net of the running accrual: there is no hidden liability, and no fee settlement ever moves NAV.
The guarantee set
Four promises, each kept by structure.
Redemption anchors the price
A weekly redemption window pays net asset value less a 25 basis-point spread, capacity-gated at 10% of the treasury per window, with unfilled amounts carrying over at first priority. The gate makes redemption orderly; the arbitrage it enables makes discounts self-healing.
Redemption is non-pausable. No discretionary suspension exists anywhere in the system, and a holder who exits in full faces no minimum. No registry action, no mode, and no minimum can strand a holder.
Minting is exactly neutral
Primary-market orders batch daily and execute at the market close. The treasury's VOO purchase fills at the same closing price used to strike that day's NAV, so execution price and NAV price are the same number by construction.
Every order prices at the strike it executes in, never at a quote that predates it. An intraday move lands entirely on the buyer; existing holders are untouched in both directions; there is no stale price to snipe.
The fee schedule only steps down
An annualized management fee, accrued daily and always already deducted from published NAV, on a locked public schedule. Step-downs never reverse: growth mechanically lowers the cost of holding, because the schedule is structure, not pricing strategy.
| Treasury size | Fee, annualized |
|---|---|
| Under $50M | 0.60% |
| $50M and above | 0.50% |
| $100M and above | 0.40% |
The guarantees survive the operator
CS2 carries its own wind-down inside itself. The dead-man clock watches real custodian-touching settlements, not automated feeds. Sustained silence arms a recovery key, held outside the founding team, that can seat a successor with paired authority over both the contracts and the custodial account.
Only if rescue also fails can any holder open the terminal exit, where every holder, any size, no gate, no spread, claims their exact pro-rata share at final NAV. The failure mode of CS2 is a slow, complete, pro-rata cash-out. Never a freeze.
The launch shape
Mint at NAV. Redeem at NAV. Weekly windows.
At launch CS2 operates a primary market only. Entry is a daily mint batch at NAV for eligible holders. Exit is the weekly redemption window at NAV less 25 basis points. Peer transfers are permitted between eligible holders. There is no secondary venue, and no secondary-market claim is made for the launch period.
The comparable structure is an interval fund: periodic repurchase at NAV, no exchange listing. CS2 runs the structure on better terms, with the redemption right enforced by contract rather than by board discretion.
Of the 25 basis-point redemption spread, 10 basis points are retained in the treasury, accreting to remaining holders. Every redemption is strictly accretive beyond neutrality: leavers feed holders.
| Interval fund | CS2 | |
|---|---|---|
| Repurchase cadence | Quarterly, typically | Weekly |
| Repurchase gate | 5%, typically | 10% |
| Redemption right | Board discretion | Enforced by contract, non-pausable |
| Solvency check | Periodic reporting | On-chain supply, published NAV, monthly attestation |
Deferred by design
The transfer-burn engine is a deferred capability, not a promise with a date.
CS2's design includes a flat 0.25% burn on sells into a registered trading pool and on wallet-to-wallet transfers, with buys from the pool exempt so that discount-closing arbitrage is never taxed. That engine is dormant at launch: it activates only if a permissionless secondary market becomes lawful under a counsel-cleared posture, behind a public 14-day minimum timelock.
Until that transition executes, no Causeway material describes CS2 as having a secondary market, price discovery, or an active transfer-burn accretion engine. The preconditions are stated; the date is not promised.
Structural contrast
What CS1 proves, CS2 completes.
| CS1 · live | CS2 · in development | |
|---|---|---|
| Backing | VOO at a regulated U.S. custodian | VOO at a regulated U.S. custodian |
| Supply events | Mint · transfer burn | Mint · redemption burn · transfer burn |
| Price anchor | None. Stored value is an accounting metric | Weekly redemption at NAV − 25 bps, non-pausable |
| Mint pricing | Instant, at the current oracle price | Daily batch at the close, forward-priced, exactly neutral |
| Fees | 1% once at mint. No recurring fee | 10 bps at mint · 0.60% annualized, stepping down to 0.40% |
| Transfer burn | Tiered 0.10% to 0.50%, every transfer, both legs | Flat 0.25%, sell-leg-only. Dormant until a counsel-cleared transition |
| Operator failure | Legal scaffolding over the custodial account | In code: dead-man clock, recovery key, terminal distribution at final NAV |
| Access | Public | Eligible investors at launch |
A claim that cannot strand its holders.
Where CS1 proves that code-enforced accretion works, CS2 makes the complete promise: a claim that mints neutrally, accretes on turnover, anchors to its backing, cheapens as it grows, and cannot strand its holders.