Architecture

Two layers, with one rule between them.

Off-chain ledger — the source of truth

A double-entry, append-only ledger holds every position and movement.

Money state lives here, and only here.

Every claim, every cycle, every loss absorbed is an entry on the ledger before it is anything else.

The presentation layer never holds money state; it reads the ledger, it does not become it.

On-chain — the threshold and the proof

The chain carries two duties, both narrow.

The rail

Positions enter and exit through pool contracts on Abstract Chain. The contract holds capital only at the threshold — while a pool accepts entries, and while claims or refunds pay out. During operation, capital is deployed off-chain to fund the production the pool is drawn against, as set out in Lifecycle.

Every movement on the rail is published as a contract event and reconciled into the ledger like any other movement. Exit paths are enforced by the contract itself.

The proof

A periodic Merkle root of the ledger state is anchored on Abstract Chain.

Anyone can check that the published state matches the anchored root.

The anchor proves consistency, not solvency: it shows that the published state is the state that was committed, unaltered behind the root. It does not, by itself, attest to the off-chain revenue that backs the state — that is the subject of verification, under Proof.

The chain settles the threshold and attests to the books; it never becomes the system of record.

The one rule

The boundary runs one way: the books are written off-chain and proven on-chain, never the reverse.

A movement on the rail is not money state until it is an entry on the ledger, and the ledger cannot be revised behind a published anchor.

This is what lets the structure be both private at the level of the individual and verifiable at the level of the system — the subject of Proof.