> For the complete documentation index, see [llms.txt](https://whitepaper.xend.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://whitepaper.xend.finance/2.0-oae-onchain-assets-environment/2.8-assets-policy-in-oae/2.8.7-token-bonding.md).

# 2.8.7 Token Bonding

In OAE, a single token can represent a right that inherently restricts another right, such as in cases of mortgages or collaterals, which serve as specific limitations on ownership rights. To effectively manage this interplay between rights, OAE allows tokens to be 'bonded'. This involves defining—and where necessary, parameterizing—the relationship between these rights at the smart contract level before a token that influences another tokenized right can be minted.

This procedure is known as token bonding and is primarily applied to scenarios involving:

* Limited ownership rights,
* Mortgages and collaterals,
* The relationship between ownership and possession (further details provided in the subsequent section).

\
The capability for token bonding is integrated into the foundational infrastructure of AssetChain (Please refer to [AssetChain - 4 execution levels ](/2.0-oae-onchain-assets-environment/2.8-assets-policy-in-oae/2.8.2-assetchain-10-cardinal-rules.md)for more details).


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