pRNH Vault.
Institutional credit. On-chain liquidity. Structured discipline.
A liquidity-oriented income vault built on institutional high yield credit. pRNH Vault allocates 100% to a single underlying exposure: NYLI GF US High Yield Corporate Bonds, a Luxembourg UCITS fund, accessed on-chain through HYB. The Vault's underlying assets have yielded an average annualized return of approximately 7.15% over the past three years, with no lock-up period. Redemptions can be settled in as few as 3 business days after the request.
It is designed for users seeking a cash-management allocation with a return profile above short-term deposits, an identifiable institutional underlying asset, and liquidity terms that are stated in advance.
Key Facts
The vault in twenty-one lines.
| Field | Value |
|---|---|
| Vault name | pRNH Vault |
| Ticker | pRNH |
| Underlying asset | NYLI GF US High Yield Corporate Bonds, I Share Class (CGUHY IU) · ISIN LU1220231333 |
| On-chain asset | 100% HYB |
| Network | Pharos |
| Investment objective | Stable income with high liquidity |
| Expected gross return | 7% p.a. (Based on 3-year avg. annualized performance of underlying assets. For reference only—not a guarantee.) |
| Management fee | 0.3% p.a. |
| Performance fee | 0% |
| Subscription / redemption fee | 0% |
| Expected net return | 6.7% p.a. (Based on 3-year avg. annualized performance of underlying assets. For reference only—not a guarantee.) |
| Minimum first subscription | 1 USDC |
| Minimum subsequent subscription | 1 USDC |
| Vault capacity | No Cap |
| Lock-up period | None |
| Subscription settlement | T+1 to T+2 (Luxembourg business days) |
| Redemption settlement | T+3 to T+6 (Luxembourg business days) |
| NAV publication | Daily, approx. 16:30 CET |
| Dealing cut-off | 12:00 CET |
| Income treatment | Accrued daily, distributed with principal upon redemption |
| Rebalancing | None — buy and hold |
Strategy Thesis
A return driver independent of the crypto cycle.
Most on-chain yield is generated by on-chain activity — lending demand, leverage, or incentive programmes. Its level is set by the crypto cycle, and so is its risk.
pRNH Vault takes a different route. Its return comes from the coupon income of a diversified portfolio of US high yield corporate bonds, managed by an established institutional asset manager under a European regulatory framework. That return driver is independent of crypto market activity.
The vault's role is not to select credits. That work sits with the underlying fund manager. The vault's role is to make the exposure accessible, liquid, and verifiable on-chain:
- —Single-asset structure, so what you hold is always identifiable
- —Defined settlement windows, so liquidity terms are known before subscription
- —On-chain proof of reserve, so allocation can be checked rather than assumed
Underlying Asset
A Luxembourg UCITS fund on the New York Life Investments platform.
NYLI GF US High Yield Corporate Bonds — I Share Class (CGUHY IU) · ISIN LU1220231333. A Luxembourg-domiciled UCITS fund investing in US high yield corporate bonds.
| Fund structure | Luxembourg UCITS, supervised by the CSSF |
| Asset class | US high yield corporate bonds |
| Manager platform | New York Life Investments |
| Group heritage | New York Life — founded 1845, Fortune 100 |
| Platform AUM | Approx. USD 800 billion |
| Reporting | Audited annual report within 4 months of financial year end; semi-annual report within 2 months of the half-year end |
| Recent 3-year returns | 7.28% · 6.88% · 7.28% (past performance is not indicative of future results) |
How the exposure reaches the chain
The fund's shares are tokenised as HYB. pRNH Vault holds HYB exclusively, and issues pRNH to users as the vault share token. Each layer of this chain — fund, token, vault — has its own documentation and its own risks, set out in the Risk Profile below.
Proof of Reserve
On-chain verification of vault reserves on Pharos, together with entry points to the underlying fund's credit and reporting materials.
Section 1 — Fund flow proof
Evidence that user deposits are allocated to HYB, verifiable on the Pharos block explorer.
| Vault contract address | 0x6ce4bc043398ac40392d1e063328048072b2075d |
| Holding address | TBD |
| Network | Pharos |
Section 2 — Underlying credit
Proof-of-asset and reporting entry points for the underlying fund, maintained by the issuer and updated without manual intervention by Raffaello.
| NYLI Proof of Asset | View document |
| NYLI Audited Annual Report | View report |
Portfolio Logic
One asset, by design.
pRNH Vault holds a single asset. 100% HYB. No leverage. No secondary strategy sleeve. No discretionary rebalancing by Raffaello.
This is a deliberate design choice. A single-asset structure means the vault's return, risk, and NAV can be traced to one source, and that users do not need to model interactions between sleeves to understand what they own.
Portfolio decisions within the underlying fund — credit selection, sector weighting, duration positioning — are made by the fund manager at their discretion, and may change at any time without prior notice to vault users.
LIQUIDITY & SETTLEMENT
Liquidity terms are stated in advance.
Liquidity terms follow the underlying fund's dealing calendar. The vault operates on Luxembourg business days.
Subscription
| Order accepted | Any time (execution follows Luxembourg business days) |
| Dealing cut-off | 12:00 CET (06:00 ET) |
| Before cut-off | Settles T+1 |
| At or after cut-off | Settles T+2 |
| Income starts | On the date pRNH is delivered |
Redemption
No lock-up period. Redemption may be initiated once pRNH has been delivered.
| Option | Timing | Fee |
|---|---|---|
| Standard | T+3 to T+5 before cut-off; T+4 to T+6 at or after cut-off | 0% |
Holdings continue to accrue income during the standard redemption waiting period. Redemption is settled at the NAV of the relevant settlement date, not the date of request.
NAV, income accrual and daylight saving
NAV is published once per business day at approximately 16:30 CET (10:30 ET), following receipt of the underlying fund's NAV and processing by the fund administrator.
Income accrues daily from the date pRNH is delivered, and is distributed together with principal at redemption. A position must be held across at least one daily NAV update to accrue income — a subscription executed and redeemed within the same NAV day will not accrue income.
When Europe exits daylight saving time at the end of October, the CET-referenced times above remain unchanged, while the corresponding local times in other zones shift by one hour. The vault interface displays times in your local zone.
Fees
One recurring fee.
| Fee type | Rate | Basis |
|---|---|---|
| Management fee | 0.3% p.a. | Accrued daily, settled at redemption |
| Performance fee | 0% | — |
| Subscription fee | 0% | — |
| Standard redemption fee | 0% | T+3 to T+6 path |
There are no subscription, redemption, or management fees charged at the underlying HYB layer. The 0.3% management fee is the only recurring fee charged by Raffaello.
RETURN ILLUSTRATION
An arithmetic illustration — not a projection.
The table below illustrates gross income at a 7% nominal annual rate. It is an arithmetic illustration only — not a projection, and not a guarantee. Actual returns will differ, and may be negative.
| Amount (USDC) | Daily | Monthly | Annual |
|---|---|---|---|
| 10,000 | 1.92 | 58.33 | 700.00 |
| 100,000 | 19.18 | 583.33 | 7,000.00 |
| 1,000,000 | 191.78 | 5,833.33 | 70,000.00 |
| 10,000,000 | 1,917.81 | 58,333.33 | 700,000.00 |
Figures are gross of the 0.3% management fee. At the expected net rate of 6.7%, annual income on 1,000,000 USDC would be approximately 67,000 USDC.
WHEN IT MAY BE RELEVANT
Composed for the moment when users seek...
- A cash-management allocation with a return profile above short-term deposits and money market funds
- An underlying asset issued and reported under an established institutional and regulatory framework
- Liquidity terms defined in advance, with no lock-up period
- A single-asset structure that can be examined rather than inferred
- A return driver largely independent of crypto market cycles
It is unlikely to be relevant for users who require capital protection, same-day liquidity at zero cost, or a return that does not vary with credit and interest rate conditions.
RISK PROFILE
Not capital protected, not a deposit.
pRNH Vault is not a capital-protected product, not a deposit, and not covered by any deposit insurance scheme. Users may lose part or all of the amount deposited in the vault.
Credit risk
The underlying fund invests in high yield corporate bonds, which carry a higher probability of issuer default than investment grade debt. Defaults or downgrades reduce fund value.
Interest rate and duration risk
Bond prices move inversely to interest rates. Rising benchmark rates reduce the value of the underlying portfolio.
Credit spread risk
Widening credit spreads reduce bond prices, independently of benchmark rate moves. In stressed periods, spread widening can exceed a full year of coupon income.
Liquidity risk
Redemption depends on the underlying fund's dealing calendar and on Luxembourg business days. In stressed market conditions, fund-level liquidity management measures may delay or restrict redemption.
Settlement and NAV timing risk
Redemption is settled at the NAV of the settlement date, which may differ materially from the NAV at the time of request. NAV publication may be delayed by the fund administrator or by data source issues.
Manager risk
Portfolio decisions within the underlying fund are made at the manager's discretion and may change at any time without notice to vault users.
Counterparty and tokenisation risk
Exposure is accessed through HYB. Failures at the tokenisation, custody, or issuer layer may affect the vault independently of the underlying fund's performance.
Smart contract and technology risk
The vault relies on smart contracts, the Pharos network, oracles, and third-party infrastructure, which may be subject to technical failure, cyberattack, network congestion, oracle error, or execution delay.
Stablecoin risk
Subscription and redemption are denominated in USDC. Depegging or restrictions on the stablecoin would affect value and settlement.
Regulatory risk
Changes to regulation in any relevant jurisdiction may affect the vault's availability, structure, or operation.
On past performance
The underlying fund has recorded negative annual returns in the past, including in 2018 and 2022. See Historical Context below.
HISTORICAL CONTEXT
We disclose weak years as clearly as strong ones.
Returns on high yield credit come from three sources: coupon income, interest rate movement, and credit spread movement. Coupon income is consistently positive. The other two can be strongly negative. When their combined drag exceeds the coupon, the year ends negative.
2018
The Federal Reserve raised rates four times, equities fell sharply in the fourth quarter, and credit spreads widened by roughly 210 bps. Energy issuers, a significant share of the US high yield market, were additionally hit by the collapse in oil prices. Coupon income of roughly +6% was outweighed by duration and spread losses.
2022
The most aggressive rate-hiking cycle in decades (+425 bps), inflation at a 40-year high, and the outbreak of war in Ukraine. Duration and spread losses together substantially exceeded coupon income.
These years illustrate the shape of the risk: an expected return of 7% is a coupon-driven expectation, not a floor. In adverse rate and credit conditions, annual returns can be negative.
pRNH Vault is not a deposit and is not capital protected. Expected returns are indicative, based on the historical and expected characteristics of the underlying fund, and are not guaranteed. Past performance is not a reliable indicator of future results. Access may be subject to jurisdictional restrictions, eligibility requirements, and sanctions screening. Please read the vault documentation in full before making any decision.
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