How Corporate Actions Are Handled

Learn how dividends, stock splits, and other corporate actions are handled for your tokenized assets on Roxom.

Tokenized assets are designed to reflect corporate actions that occur on the underlying stock.

This article explains what to expect if events such as stock splits, mergers, or similar actions occur, and what actions (if any) you need to take.

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Do tokenized assets pay dividends?

Yes. Tokenized assets on Roxom distribute dividends when the underlying stock pays dividends.

How dividends work

• Eligibility: You receive dividends proportional to the tokenized assets you hold on the Ex-Dividend Date
• Payment currency: Dividends are paid in BTC and credited to your UTA account
• BTC conversion rate: The BTC/USD market price at the end of the Stock Payment Date

Key dates

Date	Description
Ex-Dividend Date	The cutoff date. You must hold tokens before this date to be eligible
Stock Payment Date	The company’s official payment date. The BTC conversion price is determined at the end of this date

Your BTC credit typically appears within 1–2 days after the Stock Payment Date.

Deductions before conversion

Before the dividend is converted to BTC, the following deduction may be applied to the gross USD amount:

Deduction	Rate	Description
U.S. withholding tax	30%	Applied to dividends classified as Income Gain (IG)

Income Gain (IG) vs Return of Capital (ROC)

Not all dividends are taxed the same way. The issuer classifies each dividend as either:

• Income Gain (IG) — Taxable income. Subject to 30% U.S. withholding tax. Most common stocks and ETFs (like AAPL or MSTY) pay IG dividends.
• Return of Capital (ROC) — A non-taxable return of your investment. Not subject to withholding tax. Some preferred stocks (like STRC) pay ROC dividends.

How the dividend is calculated

For Income Gain (IG) dividends:

Eligible shares × Dividend per share × 0.70 ÷ BTC price = BTC credited

The 0.70 factor reflects the 30% U.S. withholding tax applied to the gross dividend.

For Return of Capital (ROC) dividends:

Eligible shares × Dividend per share ÷ BTC price = BTC credited

Since ROC dividends are not subject to withholding tax, no deductions are applied.

In both cases, the BTC price is the BTC/USD market price at the end of the Stock Payment Date.

Preferred stocks with high-yield dividends

Some tokenized assets on Roxom are preferred stocks that pay recurring, high-yield dividends in BTC. For example, STRC (Strategy Inc.) pays 11.5% annually, deposited monthly, and its dividends are classified as Return of Capital (ROC) — meaning no withholding tax applies.

To receive a dividend, you must hold the asset before the Ex-Dividend Date. The BTC credit is processed after the Payment Date.

Important notes

• Not all tokenized assets pay dividends—only those whose underlying stock distributes dividends
• There is no minimum holding requirement—any amount of tokens qualifies
• Dividends are automatically credited to your UTA account
• The BTC conversion rate is locked at the end of the Stock Payment Date, even if the credit appears later

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What happens during stock splits, mergers, or other corporate actions?

Corporate actions on the underlying stock may include:

• Stock splits or reverse splits
• Mergers or restructurings
• Ticker or share structure changes

You do not need to take any action when these events occur.

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How corporate actions are applied

When a corporate action affects a tokenized asset:

• Trading for the affected asset may be temporarily paused
• New swaps are temporarily unavailable during processing
• Your token balance is automatically adjusted to reflect the corporate action
  (for example, split ratios are applied mechanically)
• Once processing is complete, trading resumes normally

These adjustments are designed so that your economic exposure remains consistent, even if the number of tokens or their unit value changes.

For example, in a stock split, you may see your token balance increase or decrease proportionally, while the overall value remains aligned with the underlying stock.

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Important notes

• Corporate actions are handled automatically at the token level
• You will never need to manually exchange, burn, or request new tokens
• Temporary trading pauses are a normal part of safely processing corporate actions
• Tokenized assets do not grant voting rights or shareholder governance participation

All corporate action processing is handled by the external token provider and reflected automatically in your balance.

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Key takeaways

• Corporate actions are applied automatically to tokenized assets
• Temporary trading pauses may occur during processing
• Your economic exposure is preserved through mechanical adjustments
• Dividends are paid in BTC for eligible assets
• No user action is required