These properties are enforced by on-chain mechanics, not by policy or team promises.
Every investor position carries a perpetual PUTPerpetual PUTThe perpetual exit right attached to every investor position. Has no expiry, requires no approval, and does not depend on the project team being active. Exercised via redeem. right. There is no expiry, no approval flow, and no dependency on the project team being active. The exit path is user-callable on-chain at any time.
exits via redeemRedeemExercise principal protection and exit to collateral. Implemented by the divest contract function. Always available, permissionless, and on-chain. (divestDivestContract function (divest / divestUnderlying) implementing exits via redeem. Returns collateral (or strategy position tokens) to the investor.) are always available. Even if the raise is paused, even if the project token price is zero, even if the project team disappears. RedemptionRedeemExercise principal protection and exit to collateral. Implemented by the divest contract function. Always available, permissionless, and on-chain. is permissionless and on-chain.
Each investor receives their proportionalProportional SettlementEach investor receives their proportional share of the reserve pool. In normal operation, this equals the original deposit. In a reserve shortfall, it equals the proportional share of what remains. The last person to redeem gets the same rate as the first. share of the reserveReserveThe pool of collateral backing investor positions in a raise. In normal operation, each investor's proportional share equals their original deposit. In a shortfall, proportional settlement ensures fair distribution. Reserve accounting is per-raise (isolated). pool. In normal operation, this equals the original depositDepositThe action of investing collateral into a raise. Collateral is received by the raise contract, routed to the yield strategy, and a pFT position NFT is minted. At deposit time, a live oracle price feed determines USD notional for FT allocation via deposit-time conversion. amount. The system uses deterministic conversion rules, the last person to redeemRedeemExercise principal protection and exit to collateral. Implemented by the divest contract function. Always available, permissionless, and on-chain. gets the same rate as the first.
Each raise is isolatedRaise IsolationEach raise operates with independent reserve collateral accounting, position state, yield strategy routing, and admin controls. A failure in one raise does not affect unrelated raises. with its own reserveReserveThe pool of collateral backing investor positions in a raise. In normal operation, each investor's proportional share equals their original deposit. In a shortfall, proportional settlement ensures fair distribution. Reserve accounting is per-raise (isolated). collateralCollateralThe asset an investor deposits into a raise (e.g., USDC, WETH). Each accepted collateral type runs in an isolated pool with independent reserve accounting. Active collateral is routed to the yield strategy and backs investor principal protection. accounting, position state, yield strategyYield StrategyProtocol used to generate yield on deposited capital. Aave V3 is the only supported strategy at launch. Yield funds the platform fee, project ecosystem budget, and buyback and burn. routing, and admin controls. A failure in one raise does not contaminate unrelated raises.
No direct fee is charged on depositsDepositThe action of investing collateral into a raise. Collateral is received by the raise contract, routed to the yield strategy, and a pFT position NFT is minted. At deposit time, a live oracle price feed determines USD notional for FT allocation via deposit-time conversion., exits via redeemRedeemExercise principal protection and exit to collateral. Implemented by the divest contract function. Always available, permissionless, and on-chain., or exits via withdrawWithdrawClaim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for buyback and burn.. The platform earns only from the platform feePlatform FeePercentage of yield taken by the platform (10% at launch), allocated to the DAO. No fee is charged on core user actions (deposit, redeem, withdraw). on yieldYieldReturns generated by the yield strategy on deposited collateral. Variable and not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project. generated by active reservesReserveThe pool of collateral backing investor positions in a raise. In normal operation, each investor's proportional share equals their original deposit. In a shortfall, proportional settlement ensures fair distribution. Reserve accounting is per-raise (isolated)..
These are explicit boundaries of the protection model.
The guarantee is proportional settlementProportional SettlementEach investor receives their proportional share of the reserve pool. In normal operation, this equals the original deposit. In a reserve shortfall, it equals the proportional share of what remains. The last person to redeem gets the same rate as the first. (see above), not a fixed dollar amount. In a reserveReserveThe pool of collateral backing investor positions in a raise. In normal operation, each investor's proportional share equals their original deposit. In a shortfall, proportional settlement ensures fair distribution. Reserve accounting is per-raise (isolated). shortfall (e.g., strategy exploit), each investor receives their proportionalProportional SettlementEach investor receives their proportional share of the reserve pool. In normal operation, this equals the original deposit. In a reserve shortfall, it equals the proportional share of what remains. The last person to redeem gets the same rate as the first. share of what remains.
There is no guaranteed minimum yieldYieldReturns generated by the yield strategy on deposited collateral. Variable and not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project.. If yieldYieldReturns generated by the yield strategy on deposited collateral. Variable and not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project. goes to zero, principal mechanics still function, but buybackBuyback and BurnMechanism where released capital from withdraws and yield surplus are used to buy back and burn project tokens, reducing circulating supply. and ecosystem budget inflow stops.
Principal protectionPrincipal ProtectionThe structural guarantee that investors can always redeem their deposited collateral via the perpetual PUT. Protection is proportional to reserve backing, not a fixed dollar guarantee. covers project-token downside, not upstream protocol exploits (e.g., an Aave vulnerability) that reduce reserveReserveThe pool of collateral backing investor positions in a raise. In normal operation, each investor's proportional share equals their original deposit. In a shortfall, proportional settlement ensures fair distribution. Reserve accounting is per-raise (isolated). collateralCollateralThe asset an investor deposits into a raise (e.g., USDC, WETH). Each accepted collateral type runs in an isolated pool with independent reserve accounting. Active collateral is routed to the yield strategy and backs investor principal protection. itself. See Risk Model for detailed failure scenarios and recovery expectations.
If strategy liquidity is temporarily constrained (e.g., high Aave utilization), withdrawalsWithdrawClaim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for buyback and burn. may require retries. Circuit breakersCircuit BreakerVelocity control on outflows that limits how fast capital can leave through wrapper withdraw paths. Uses a dual-buffer model to protect against exploit-velocity drains while ensuring exits remain available over time. may also throttle outflow velocity. This is a temporary delay, not a loss — the capital exists, it is lent out.
RedemptionRedeemExercise principal protection and exit to collateral. Implemented by the divest contract function. Always available, permissionless, and on-chain. is proportionalProportional SettlementEach investor receives their proportional share of the reserve pool. In normal operation, this equals the original deposit. In a reserve shortfall, it equals the proportional share of what remains. The last person to redeem gets the same rate as the first. in depositDepositThe action of investing collateral into a raise. Collateral is received by the raise contract, routed to the yield strategy, and a pFT position NFT is minted. At deposit time, a live oracle price feed determines USD notional for FT allocation via deposit-time conversion.-asset terms. For stablecoin raises (USDC), this is effectively identical to getting dollars back. For volatile-asset raises (WETH), the investor receives WETH, which may be worth more or less in USD than at depositDepositThe action of investing collateral into a raise. Collateral is received by the raise contract, routed to the yield strategy, and a pFT position NFT is minted. At deposit time, a live oracle price feed determines USD notional for FT allocation via deposit-time conversion. time.
| Component | Trust Model |
|---|
| Exit mechanics | On-chain, permissionless, no trust required |
| ReserveReserveThe pool of collateral backing investor positions in a raise. In normal operation, each investor's proportional share equals their original deposit. In a shortfall, proportional settlement ensures fair distribution. Reserve accounting is per-raise (isolated). accounting | On-chain, deterministic |
| Yield strategyYield StrategyProtocol used to generate yield on deposited capital. Aave V3 is the only supported strategy at launch. Yield funds the platform fee, project ecosystem budget, and buyback and burn. (Aave V3) | Trust in upstream protocol security |
| Admin operations | Multisig-based, delayed rotation |
| Oracle pricing | Trust in oracle feed for depositDepositThe action of investing collateral into a raise. Collateral is received by the raise contract, routed to the yield strategy, and a pFT position NFT is minted. At deposit time, a live oracle price feed determines USD notional for FT allocation via deposit-time conversion.-time pricing only |
| Circuit breakerCircuit BreakerVelocity control on outflows that limits how fast capital can leave through wrapper withdraw paths. Uses a dual-buffer model to protect against exploit-velocity drains while ensuring exits remain available over time. | Configured by admin, throttles but never permanently blocks exits |
