> For the complete documentation index, see [llms.txt](https://paragon-protocol.gitbook.io/paragon-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://paragon-protocol.gitbook.io/paragon-protocol/p10-index/what-p10-tracks.md).

# What P10 Tracks

### Core Principle

P10 follows a **capped free-float market cap model**:

* selects the Top 10 eligible assets
* excludes unsuitable or high-risk tokens
* applies caps to prevent dominance

***

👉 Result:

* diversified
* balanced
* institution-ready

***

### Scope & Exclusions

#### ✅ Included

P10 includes:

* major L1 and L2 assets
* high-liquidity tokens
* assets with reliable oracle support
* canonical BNB Chain representations (wrapped if required)

***

#### ❌ Excluded

P10 excludes:

* stablecoins (USDT, USDC, etc.)
* pegged or rebasing assets
* duplicate representations (e.g. BTC vs wrapped BTC counted once)
* assets without:
  * reliable price feeds
  * sufficient liquidity
  * verified support

***

👉 If a top asset does not meet requirements, the next eligible asset is selected.

***

### Eligibility Rules

Each asset must satisfy all of the following:

* Top 10 by free-float market cap
* reliable oracle coverage:
  * primary (Chainlink preferred)
  * secondary (Pyth / Redstone)
* sufficient liquidity on BNB Chain
* minimum trading history (≥ 30 days)
* no critical risk flags (exploits, depegs, freezes)

***

👉 If any condition fails, the asset is excluded and replaced.

***

### Weighting Model (Capped)

P10 begins with market cap weighting, then applies limits:

* **Mainnet cap:** 30% per asset
* **Testnet cap:** 35%

If an asset exceeds the cap:

* excess weight is redistributed
* the process repeats until balanced

***

#### Minimum Weight Rule

* minimum allocation: **1%**
* assets below this threshold are removed

***

👉 This prevents:

* excessive concentration
* insignificant allocations
* poor diversification

***

### Reconstitution & Rebalancing

#### Reconstitution (Asset Selection)

* **Testnet:** weekly
* **Mainnet:** monthly
* emergency updates possible

***

#### Rebalancing (Weights)

* occurs during reconstitution
* adjusts allocations
* avoids continuous trading

***

👉 Between events, P10 passively follows market movements.

***

### Price Sources & Validation

P10 uses a multi-layer validation system:

* off-chain indexer (market cap ranking)
* on-chain verification
* oracle validation

***

#### Oracles

* primary: Chainlink
* secondary: Pyth / Redstone
* TWAP cross-check

***

#### Safeguards

* freshness checks
* deviation limits
* circuit breakers

***

👉 If validation fails:

* minting is paused
* redemption remains active

***

### What You Hold

#### 🧪 Testnet

* synthetic P10
* tracks index within a controlled deviation range (\~±3%)
* optimized for testing and iteration

***

#### 🚀 Mainnet

P10 will operate using a **basket-backed model**:

* holds underlying assets
* supports permissionless mint and redeem
* fully transparent and on-chain

***

👉 Alternative structures (e.g. synthetic models) may be explored via governance in the future.

***

### Special Cases

**Forks / Airdrops**

* added to NAV
* sold into the index at rebalance (default)

***

**Migrations**

* transitioned to updated token versions after validation

***

**Critical Events**

* affected assets removed
* emergency reconstitution triggered

***

### Fees & Limits

* mint fee: **0.10%**
* redeem fee: **0.10%**
* default slippage guard: \~0.5%

***

#### Mint Controls

* per-transaction caps
* daily limits

***

👉 Designed for stability, fair execution, and risk control.

***

### Transparency

P10 publishes:

* full composition (symbol, weight, address)
* oracle sources
* signed snapshots
* on-chain events

***

UI displays:

* oracle status
* validation checks
* execution details

***

### TL;DR

* tracks Top 10 crypto assets (excluding stables)
* capped to prevent dominance
* rebalanced on a defined schedule
* validated through multiple oracle layers
* fully transparent and on-chain

***

P10 is designed to combine market exposure, risk controls, and transparent execution into a single index product.


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