Credit vault

BondrailVault accepts one exact-transfer, non-rebasing asset and issues transferable ERC-4626 shares. The curator uses allocate(bond, amount) to fund eligible bonds from its immutable factory. Share value includes cash and carried bond positions; it is not a guaranteed redemption balance.

Carried cost and lossesCopy Anchor Link

costBasis(bond) records allocation cost. holdingRealizedValue(bond) is the vault's claims' pro-rata share of the current bond pool() (1:1 claims during Funding/Cancelled). holdingRecovered(bond) uses cumulative revenue, principal recovery and stake recovery for the current claims and supply. Unrecovered cost is cost basis minus recovered value, floored at zero.

holdingEntryValue and holdingValue apply these rules before the vault-wide income deduction:

Active values are capped at the position's share of effectiveRevenueCap + undrawnPrincipal + principalRecovery + stakeRecovery - totalRedeemed. This includes refundable principal separately from the revenue cap, which scales with released capital. Unslashed issuer stake is excluded.

The write-down starts at defaultedAt() or maturity, whichever applies first; a late default cannot restart it. The default/maturity rule takes precedence over the trigger haircut and starts with zero time-based haircut. A fresh default can therefore initially increase a previously triggered position's carrying value; this is not a monotonic risk score. Repayment shrinks unrecovered cost and increases backing. A later checkTrigger() can clear the trigger haircut, but default flags do not clear.

Entry price differs from exit priceCopy Anchor Link

entryAssets() ignores unrealized trigger/default impairments; totalAssets() is exit NAV, including those impairments. Both subtract unvestedIncome(). Final Closing/Closed losses affect both.

• Quote deposit(assets, receiver) with previewDeposit (shares round down).
• Quote mint(shares, receiver) with previewMint (assets round up).
• Quote withdraw / redeem with previewWithdraw / previewRedeem at exit NAV.
• convertToAssets and convertToShares use exit NAV; they are not entry quotes when impaired.

Entries stay open throughout bond lifecycles. Entering at the higher price prevents new deposits buying unrealized impairments at the exit discount; it does not protect entrants from final losses. OpenZeppelin virtual assets/shares and a six-decimal offset affect rounding (a six-decimal asset has 12-decimal shares). Zero-asset or zero-share movements revert. Transactions have no built-in user slippage argument.

Seven-day income vestingCopy Anchor Link

Profit is realized backing above cost, not projected revenue. unvestedIncome() excludes all newly observed profit from both prices, including profit not yet checkpointed. Anyone can call checkpointIncome(); successful vault money movements also checkpoint. New profit merges with the still-unvested remainder and starts a fresh seven-day linear schedule. With no new profit, a checkpoint does not restart time. Reading a price alone does not start vesting.

Vesting starts when a write observes profit, not at its original payment block. Later inflows can extend the old remainder's tail; fully vested income is not relocked. collect() moves Closed backing to idle cash without unlocking profit early. This is not an entitlement snapshot: new holders who stay invested participate as income vests. Direct asset donations affect price immediately.

Curator powers and hard limitsCopy Anchor Link

allocate only accepts same-asset, factory-registered Funding bonds with depositAllowed(bond) == true. At each allocation, fixed limits enforce 25% of pre-allocation exit NAV per bond, 16 holdings, and 20% of exit NAV remaining idle. These are allocation checks; withdrawals, losses and recoveries can change concentrations and consume the buffer. There is no issuer-diversification guarantee.

The curator can withdrawFromRaise while bond withdrawal is allowed, or collect entire positions after Cancelled/Closed. It cannot redeem Active/Closing claims, sell claims, call arbitrary contracts, rescue assets or charge fees. The immutable owner's only administrative power is proposeCurator and acceptCurator after two days; replacing a proposal restarts that delay. There is no upgrade or pause.

Liquidity and risksCopy Anchor Link

maxWithdraw(holder) and maxRedeem(holder) limit exits to idle cash. A preview gives a price, not an availability promise. There is no queue or automatic bond liquidation; first exits can exhaust cash. Even realized bond backing can remain unavailable until cancellation or final settlement.

Carrying at cost assumes healthy bonds keep paying. Exit NAV can exceed pool backing and is neither a market quote nor a liquidation floor. Consider issuer losses/correlation, curator availability, reviewer/observer trust, delayed trigger checks/default reports, settlement pricing, vesting timing, token freezes, donations, rounding and dust. No principal or yield is guaranteed.

The design specification gives the exact arithmetic; its original pre-deployment status is historical. The implementation is BondrailVault.sol.