> For the complete documentation index, see [llms.txt](https://fractality.gitbook.io/fractality/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://fractality.gitbook.io/fractality/ftoken.md).

# fToken

fTokens are the yield bearing vault share assets of Fractality. They are denominated per underlying token. e.g.(please be aware that the mainnet token names might not reflect reality since the documentation is created during testnet period.):

* fUSDT is denominated in USDT
* fUSDC is denominated in USDC
* fLINK is denominated in Chainlink
* fCRV is denominated in Curve
* fSTETH is denominated in stETH
* fOETH is denominated in OETH

**fToken Valuation Mechanism**

> fTokens gain value through a dynamic and systematic mix of strategies. The realized profit is reflected in the rising price of the share asset, which is denominated in the underlying and backing asset. This allows fTokens to offer enhanced yield during market upswings and mitigate losses during downturns.

Fractality utilities variety of yield bearing & hedge purposed positions in order to create significant PnL that can feed into the share value. These positions comes with its inherent risks. These risks are including but not limited to: 

* Smart contract risks 
* External platform vulnerabilities 
* Liquidity concerns 
* Exchange counterparty risks 
* Market fluctuations

Fractality acknowledges these risks and continually enhances its risk management and diversification strategy.