> For the complete documentation index, see [llms.txt](https://liquid-finance-1.gitbook.io/liquid-finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://liquid-finance-1.gitbook.io/liquid-finance/for-developers/smart-contracts-documentation.md).

# Smart Contracts Documentation

Even though **Liquid’s** smart contracts repository is not public yet, we can outline the **structure and functionality** of the on-chain programs that power **Liquid’s tokenization**.

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**Asset Token Contracts (Solana Programs):**\
Each tokenized asset on Liquid is represented by a set of on-chain entities:

* **An SPL Token Mint that represents the asset:**\
  This mint is configured according to the asset’s structure:
  * **Full Ownership:**\
    If the asset will not be fractionalized, the mint may issue a single token (or a fixed small supply) representing the entire asset.
  * **Fractional Ownership:**\
    The mint’s total supply is set to a large number (e.g., 1,000; 1 million; or 100 million tokens) reflecting divisible shares of the asset.\
    The asset owner usually retains some portion and can distribute or sell the rest.
  * **Revenue-Sharing or Debt Representation:**\
    The token can represent a claim on cash flows (e.g., rental income, loan interest).\
    In such cases, the token contract might incorporate a mechanism for distributing dividends or interest to token holders, either via an associated on-chain program or off-chain handling recorded on-chain.
  * **Time-Locked or Vesting Tokens:**\
    Liquid’s contracts support **timelocks**.\
    Asset owners might lock their own tokens for regulatory lock-up periods or enforce vesting schedules for shareholders, freezing transfers of certain accounts until expiration.

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**Pre-Audited Contract Templates:**\
Liquid has developed a **suite of Solana programs** to handle these different token behaviors.\
These programs:

* Are **pre-audited** for security.
* Are **reused across multiple tokenizations** with parameters tailored per asset.
* Include modules like:
  * **Transfer restrictions:** Ensuring only KYC-approved wallets can hold certain tokens (e.g., through whitelists or verified NFTs like a Civic Pass).
  * **Revenue-sharing distributions:** Sending SOL or stablecoins periodically to token holders based on their share.

By deploying **standardized, audited code** for each asset (instead of writing a new contract each time), Liquid **guarantees security and consistency**, making it easier for developers and institutions to trust asset token contracts.

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**Metadata and Document Linking:**\
Each asset’s on-chain record includes a **pointer to its metadata and legal documentation**, stored off-chain.\
Typically using Solana’s Token Metadata program, Liquid attaches a JSON metadata file to the asset’s mint with fields such as:

* Name
* Symbol
* Description
* IPFS links to documents (e.g., deed, contracts, appraisals)
* Regulatory flags

This metadata is either **immutable** or **restricted to updates** only by trusted authorities (the issuer or Liquid), ensuring consistency and tamper-proof asset information.