Participants
The structure is held by a defined set of actors.
Each has one function and a bounded authority.
No actor holds more than its function requires, and none can reach across the boundary into another's.
The actors
| Actor | Function | Cannot |
|---|---|---|
| Contributor | Supplies capital into a pool through the Vault | Direct allocation, or reach the underlying operations |
| Architect | Liquidity provider that governs allocation and parameters | Override the loss order, or alter the disclosure |
| Monetization partner | Operates the asset and stands behind the senior baseline by contract | Touch the ledger, or hold contributor capital |
| Protocol Reserve | Absorbs loss first, ahead of any pool | Be drawn for anything but loss absorption |
| Foundation | Holds custody and carries legal responsibility | Discretion over individual positions |
Contributors
Capital enters from contributors, who take a position in one of two pools.
A contributor holds a claim on revenue, defined by the pool.
The claim is recorded on the ledger; it is never a claim on the operations themselves.
Architects
Liquidity providers govern.
They set allocation across pools, the parameters of each pool, and the direction of the Reserve.
Governance is structural — it shapes how capital is deployed, not whether a given contributor is paid in the defined order.
The loss order and the disclosure stand outside governance reach.
The monetization partner
The asset is operated off-chain by a monetization partner under contract.
The partner earns the revenue, settles it in fiat, and stands behind the senior baseline first, ahead of the Reserve.
The partner keeps ownership and operations; it never holds contributor capital and never writes to the ledger.
The Protocol Reserve
The Reserve is the first-loss buffer.
It stands ahead of both pools and is drawn only to absorb loss, in the defined order.
Its capitalization and direction are described under Economics.
The foundation
Custody is held by the Foundation, a Panamanian non-profit, which carries the legal responsibility for the protocol.
The foundation holds the structure; it does not hold discretion over any single position.
Separation of duties
The functions are held apart on purpose, because their interests are not identical.
Governance sets where capital goes and would gain from deploying it harder; it cannot reach the loss order or the disclosure, so it cannot pay for that reach with a contributor's protection. The monetization partner earns from operating the asset and stands behind the baseline; it cannot touch the ledger or hold contributor capital, so it cannot settle its own performance. The Foundation custodies the structure; it holds no discretion over a position, so custody and allocation never sit in one hand.
The conflict is not denied; it is contained. Each actor is bounded so that the thing it would benefit from bending is held by another actor that cannot benefit from bending it. The protections a contributor relies on — the loss order, the disclosure, the separation of custody from allocation — stand outside the reach of any single function. This is the risk the structure manages by design rather than by trust.