Lifecycle
A position moves through the structure in a fixed order: it enters, its capital is deployed to fund the production cycle, the cycle's revenue is verified, payout follows in the loss order, and the position is redeemed.
Each step is recorded on the ledger before it is anything else.
Entry
Capital enters through the Vault and takes a position in one of two pools.
The position is recorded on the ledger and proven against the on-chain anchor.
From entry, the claim is defined by the pool — the whole book against a baseline, or a single name directly.
The position carries a lock term, defined by its pool at the time of deposit.
Lock terms differ by pool, and are published with each.
Capital is committed for the term; the terms of exit are set out under Liquidity and gating, below.
Deployment
The capital does not sit idle. Once a position enters, the capital is deployed off-chain to fund the production cycle the pool is drawn against.
Production spends before it earns: the capital funds that production, the production earns the revenue, and the revenue returns to the pool through the waterfall.
This is what the lock term is for — the capital is committed because it is funding the cycle that produces the return, not held aside against it.
Every deployment is recorded on the ledger and proven against the on-chain anchor, in the same order as every other movement.
The cycle
The funded production earns revenue, settled off-chain over a recurring cycle.
A position is held across the cycle; it is not marked or moved within it.
The cycle is the unit in which the structure measures, verifies, and pays.
Verified, then paid
Each cycle, revenue is verified before it is paid.
Verification is anchored on-chain; payout follows in the defined loss order, targeted within fourteen days of the cycle closing and subject to that verification.
Verified first, then paid — the order is not reversed, and nothing is paid against revenue that has not been verified.
Payout in the loss order
Distribution follows the waterfall: obligations are met in the order the structure protects them.
The senior baseline is met first from realized revenue and, where revenue falls short, from the partner's contractual support and then the Reserve; the junior positions receive the outcome of their single names; surplus above the baseline accrues as the pools define.
Liquidity and gating
The two pools differ in how a position can leave.
The Stable Pool is always-open: a position may be redeemed on its terms once the lock term is met. The Single Pools are window-bound: a position is redeemable only at the windows its pool defines, around the cycle it is drawn against.
Either way, capital is committed for the lock term, and withdrawal before it is not assured.
Under stress — where redemptions in a cycle exceed what realized revenue and the buffers can settle without breaking the loss order — redemption may be queued or gated. Gating preserves the order in which the structure pays; it does not move any position ahead of another, and it does not draw a pool's principal to meet a redemption.
Redemption
A position is redeemed on the terms of its pool, at the end of its lock term.
Redemption settles against the ledger and is proven on-chain, in the same order and within the same bounded discipline as a cycle payout.
Where a buffer behind the senior baseline has been drawn, redemption is met in the same support order as a cycle payout — realized revenue, then partner support, then Reserve — never out of another position's principal.
The position leaves the structure the way it entered it — recorded first, proven second.