> For the complete documentation index, see [llms.txt](https://cvnnt.gitbook.io/documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://cvnnt.gitbook.io/documentation/faq/tokens-and-assets.md).

# Tokens & assets

Covenant system doesn't have its own token. Instead, Covenant utilizes synthetic system tokens & assets to represent synced (channeled) assets deposited on integrated networks.

### BTC asset representation: Value & Ownership

Bitcoin assets are different from EVM-based assets. Bitcoin blockchain due to its UTXO structure has "real" asset property, while pure EVM (account-based) assets are generally data on the distributed table. That is why BTC deposits have special opportunity set, unlike EVM-based assets.

When channeled to Covenant, BTC deposit is represented via two system assets:

1. **cNFT (Channel NFT)** - a non-fungible unique NFT-like asset that represent the channel (BTC deposit) ownership
2. **sBTC (Synced BTC)** - fungible tokens representing value of synced BTC deposit. sBTC tokens can be minted with cNFT. Amount of unminted sBTC tokens on cNFT shows amount of original BTC available for instant withdraw on Bitcoin network. To withdraw all amount of channeled BTC in deposit, the cNFT owner should collect as many sBTC as stated in their cNFT.

### Frequently asked questions

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<summary><strong>Does Covenant system have its own token?</strong></summary>

No, Covenant system operates with other networks assets using for this activity synced synthetic representations.

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