> For the complete documentation index, see [llms.txt](https://docs.kaio.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.kaio.xyz/guide-to-using-kaio/smart-contracts/tokens.md).

# Tokens

A security token is the on-chain representation of shares in a tokenised fund. One per instrument, priced off the NAV of the underlying.

Each is a standard ERC-20, so any wallet, exchange or protocol that reads ERC-20 reads a KAIO security token. The standard is extended with logic governing who may send and receive, and every transfer is validated against the rule engine before transaction execution.

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[Security Token](/guide-to-using-kaio/smart-contracts/tokens/security-token.md)
{% endcontent-ref %}