Diversification is one of the most effective ways to manage risk in any market, especially in crypto, where volatility runs high. By spreading your investment across multiple assets, you reduce the impact of any single token’s performance while still capturing upside from emerging trends and narratives. In traditional markets, studies show that diversified portfolios (like ETFs) outperform single-asset portfolios over 80% of the time across five-year periods, largely thanks to smoother compounding and smaller drawdowns. In crypto, the same principle applies: momentum shifts fast, and diversification helps you stay exposed to what’s working without constantly rebalancing or chasing the next big thing. TL;DR: It smooths out volatility while keeping you in the game when the market moves up.

An index is a curated basket of multiple crypto assets, grouped around a common theme - like DeFi, Multichain, or Bluechips. Instead of buying each token individually, you can invest in the entire basket through a single $USDC deposit. Each index represents a clear narrative, giving you diversified exposure without the complexity of managing multiple wallets, swaps, or allocations. Just like ETFs in traditional finance, indexes track the combined performance of their underlying assets, offering broader and smoother exposure to the market’s movements. An auto-rebalancing engine continuously monitors each tokens within an index and adjusts allocations whenever needed to maintain balance. In short: one token = exposure to a whole market narrative.

Each index is built with fixed target allocations - for example, the BONK Ecosystem Index starts with: 60% $BONK • 15% $MF • 15% $GP • 7.5% $ART • 7.5% $BERN. As market prices move, those weights naturally drift over time. DiversiFi’s auto-rebalancing engine continuously monitors each vault’s composition. When an asset’s share deviates by more than 5% from its target, the system automatically rebalances - selling a portion of the tokens that have gained too much weight and buying more of those that have fallen behind. To minimize how often rebalancing is triggered, new deposits are used to buy the tokens furthest below their target allocation. This approach keeps vaults balanced while reducing unnecessary rebalances (and therefore gas costs). Example: If $BONK rallies and grows to 65% of the vault instead of 60%, DiversiFi automatically sells a small portion of $BONK and redistributes it into $MF, $GP, $ART, and $BERN. The vault stays healthy and balanced, ensuring your exposure remains diversified across the BONK ecosystem. TL;DR: DiversiFi automatically keeps your indexes balanced, so your exposure stays smart, stable, and stress-free, no matter what the market does.

When you deposit into an index, you simply send $USDC to the vault of your choice (depending on the index you wan to invest in). In return, you receive index tokens (dTokens) that represent your proportional share of the vault. Your deposit is automatically swapped into the underlying assets according to the index’s target allocation. For example, if you deposit $1,000 into the BONK Ecosystem Index, your funds are split across $BONK, $MF, $GP, $ART, and $BERN based on their current weights. When you withdraw, the process is reversed: the vault sells your share of the underlying assets, burns your dTokens, and returns $USDC** to your wallet. Deposits are optimized to rebalance naturally : new funds are directed toward tokens that are underweighted, helping maintain balance without triggering unnecessary swaps. TL;DR: • Deposit $USDC → get dTokens representing your share. • Withdraw → burn dTokens and receive your share back in $USDC. • Everything else - swaps, weighting, balancing - happens automatically under the hood.

The price of a dToken represents the value of one share in a vault. It’s calculated as: dToken Price = Vault TVL ÷ Total dToken Supply When someone deposits into a vault, new dTokens are minted at the current price, so their value matches the vault’s assets at that moment. Likewise, when someone withdraws, their dTokens are burned at that same price, and the vault’s assets are reduced proportionally. Because the vault’s TVL and token supply grow or shrink together, deposits and withdrawals do not affect the dToken price. The ratio stays constant. What changes the dToken price is the market performance of the underlying assets. When the tokens inside the vault appreciate, the vault’s TVL increases while the supply stays the same, making the dToken price go up. If the tokens lose value, TVL drops, and the dToken price falls accordingly. Example: • The DeFi Index vault holds $100,000 and has 100,000 dTokens in circulation → 1 dToken = $1. • If a new deposit of $10,000 enters, both TVL and supply rise proportionally → still $1 per dToken. • If the vault’s assets then appreciate by 20%, TVL becomes $120,000 → dToken price = $1.20. TL;DR: Deposits and withdrawals don’t impact dToken price, only the value of the vault’s underlying assets does. As those assets move, the vault’s total value (TVL) shifts, which directly changes the dToken price.

DiversiFi is designed to stay transparent, simple, and sustainable. We are now only taking entry and exit fees, and as we scale, will implement fees based on the earnings. This fee (1%) is applied when you deposit or withdraw from a vault. It’s automatically deducted from the transaction and reflected in the amount of $USDC you receive or the number of dTokens minted.

BONK plays a central role in DiversiFi’s ecosystem. As our lead partner and primary backer, BONK helps fuel growth while aligning both communities through a shared, sustainable value loop. Every time DiversiFi collects fees, a portion is used to buy and burn BONK. This BONK burn mechanism permanently removes BONK tokens from circulation, reducing total supply over time and reinforcing the token’s scarcity. Here’s how it works in practice: - BONK Index Vaults: 80% of all fees generated by these vaults are swapped for BONK and burned. - Other Index Vaults: 20% of collected fees are converted to BONK and burned, ensuring that every part of DiversiFi contributes to the ecosystem. This creates a direct link between DiversiFi’s growth and BONK’s long-term value, as DiversiFi scales, more BONK is removed from circulation. Beyond the tokenomics, BONK also powers visibility and trust. The partnership provides exposure across BONK’s massive user base and community network, reinforcing DiversiFi’s position as one of the first ecosystem products built for and with BONK.