Debentures issued by Usucapiador S.A., denominated in US dollars and secured by the financing contracts of a 1,000-lot tranche. Interest of 20% a year, paid monthly in US dollars, ahead of every operating cost. Principal is repaid through a separate event: when the title is issued and an institutional fund buys the portion of the credit that matches the investment. There is no guarantor. Protection comes from contractual priority, the tranche reserve, an independent trustee and the subordination of legal counsel's fee.
All figures in US dollars The debentures are denominated and paid in US dollars. The underlying contracts are in Brazilian reais, converted here at R$5 to the dollar. The issuer, not the investor, bears the currency risk; its effect on the floors is shown under “What this stress test doesn't yet include.”
Executive summary
Each lot needs US$228 to open its usucapião case. When the case ends and the title is issued, a fund refinances the family for 15% of the property's value, a fixed percentage with no discount. At an estimated average of US$40,000 per titled property, that is US$6,000 per lot.
| Investment per lot | US$228 |
| Interest to the investor | 20% a year, paid monthly |
| Tranche size (1,000 lots) | US$228,000 |
| Interest paid over 48 months | US$182,400 |
| Takeout value per successful lot | US$6,000 |
| Return to Usucapiador S.A. and partners (100% success) | ≈ US$5.7 million |
| Property value brought into the formal economy (100% success) | ≈ US$40 million |
Of each US$6,000 takeout, US$228 repays the investor's principal, US$80 replenishes the tranche reserve, and the remaining US$5,692 or so goes to Usucapiador S.A. and its partners. The US$40,000 average is an assumption, not an audited market figure. Full success is the ceiling, not the expectation.
Two accounts, not one: interest and principal
Interest is cash flow, paid monthly out of what the families pay. Principal is a stock, repaid once, at takeout. Each has its own floor.
Where each US$48 monthly payment goes
1stInvestor interest (senior; does not wait for a ruling)US$3.80
2ndOperating floor (platform US$7.60 + legal US$12.00)US$19.60
3rdTranche reserveUS$3.80
4thNinja Advogados, subordinated: the first cut under stressUS$20.80
Each family pays R$240 a month, about US$48. Only paying lots feed this waterfall; a lot that stops paying is removed within 90 days.
The interest floor: 134 lots current
The tranche owes US$3,800 a month in interest (20% a year on US$228,000). Each current lot pays US$48 and uses US$19.60 of the operating floor.
The math N × 48 ≥ 3,800 + N × 19.60 → N × 28.40 ≥ 3,800 → N ≥ 133.8 → 134 lots, 13.4% of the tranche
| Lots current | Cash (N × 48) | Interest + operating floor | Result |
|---|
| 100 | US$4,800 | US$5,760 | Short by US$960 |
| 120 | US$5,760 | US$6,152 | Short by US$392 |
| 134 | US$6,432 | US$6,426 | Covered, US$6 to spare |
| 200 | US$9,600 | US$7,720 | Covered; the reserve grows |
Below 134 lots, interest is still paid first. What runs short is the operating budget, and the reserve is there to push that breaking point back. Put another way, the tranche keeps paying the full 20% with up to 86.6% of families delinquent.
The principal floor: 38 titles
| Average estimated value of a titled property | US$40,000 |
| Takeout per lot (15% of the property, fixed) | US$6,000 |
| Titles needed to repay the full US$228,000 | 38 |
| Minimum success rate for principal | 3.8% |
The fund's refinancing is the model's central assumption and is not yet under contract. Brazilian real estate credit funds routinely buy receivables backed by a registered title and a fiduciary lien (Law 9,514/97), but until a contract is signed, repayment of principal depends on the market, not on a clause already in place.
Three ranges to understand
| Range | Principal | Interest |
|---|
| Below 3.8% success | Takeouts do not repay principal | Moot; the structure has already failed |
| 3.8% success to 13.4% current | Principal repaid or nearly so | Depends on the reserve or on cutting operating costs |
| Above 13.4% current | Principal comfortably covered | Interest and operations are covered every month without help |
What this stress test doesn't yet include
| Limitation | What it means in practice |
|---|
| Currency | Families pay in reais; the debenture pays in dollars. The floors use R$5 to the dollar. If the real weakens to R$6, the interest floor rises from 134 to 161 current lots (16.1%). |
| Shared tranche cash | Without a segregated vehicle, the floor assumes one lot's payment can cover another lot's interest. |
| Fund refinancing not yet contracted | The 15% takeout is fixed by design, but the fund is not yet a signed partner. |
| Average property value is an estimate | US$40,000 is a hypothetical average. Each lot's takeout depends on that property's appraisal. |
| Timeline | Cases in greater São Paulo take 3 to 5 years on average. The floors have to hold for as long as the cases run. |
86.6%
The maximum delinquency the tranche can absorb while still paying full interest and covering the operating floor. The binding constraint is always interest, never principal.
How to invest
| Instrument | Usucapiador S.A. debenture, tokenized through Token One |
| Currency and interest | US dollars, 20% a year, paid monthly |
| Offering | Private placement to a small number of US accredited investors, by invitation |
| Collateral | Security interest in the tranche's contracts |
| Guarantor | None |
| Trustee | Ivo Loyola, representing the debenture holders |
Frequently asked questions
Do I get paid every month? +
Yes. Interest of 20% a year is paid monthly in US dollars, about US$3.80 per lot financed, whether or not a ruling, title or takeout has occurred. Principal is repaid once, when the title is issued.
Who bears the currency risk? +
The issuer. The debenture pays in dollars regardless of the exchange rate. A weaker real raises the number of current lots needed to cover interest, which is why the floor is shown at both R$5 and R$6 to the dollar.
What if a usucapião case is lost? +
That is the residual legal risk, which screening reduces. A lot that loses its case is removed within 90 days. Because each takeout is 15% of the property's value, a 3.8% success rate is enough to repay the full principal.
Is the institutional takeout already under contract? +
Not yet with a specific fund. It is the model's central assumption, not a guaranteed source of cash today.
Can I transfer my position? +
The debentures are tokenized through Token One. Transfer conditions follow the issuance instrument and applicable securities rules, including US resale restrictions for privately placed securities.
