Governance

Liquidity providers — the Architects — govern allocation, parameters, and the direction of the reserve.

What governance sets

Governance shapes how capital is deployed: allocation across pools, the parameters of each pool, and the direction of the Protocol Reserve.

These are the levers of the structure — where capital goes and on what terms — and they are held by the providers of that capital.

What governance cannot reach

Governance does not reach the loss order or the disclosure.

The waterfall is fixed; the risk terms are centralized and controlling.

No vote re-orders who absorbs loss first, and no vote revises the terms a contributor relied on.

The structure's protections stand outside the structure's discretion.

How parameters change

A parameter is changed by publication, not by surprise.

A change to allocation, cost structure, a baseline, or a reserve target binds the positions opened after it is published; it does not reach back into the terms a contributor already holds. A position is governed by the parameters in force when it was taken.

There is no discretionary override of the loss order, and no emergency power that re-prices a position against the terms it relied on. Where the structure must act under stress, it acts within the fixed order — by gating, in the lifecycle sense — not by suspending it.

Custody and responsibility

Custody is held by the Foundation, a Panamanian non-profit, which carries legal responsibility for the protocol.

Governance directs; the foundation holds.

The separation is deliberate — the right to set parameters and the duty to custody the structure do not sit in the same hand.

Alignment

The structure rewards those who bond to it.

Authority accrues to the providers of durable liquidity, not to short-term flow; the deeper and longer the commitment, the greater the standing in the structure that commitment governs.