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Economic Model Overview

Core Principle

Claimability is not equal to raw vault balance. Claimability is created only through model-approved accounting transitions.

Principal Vs Rewards

  • Protected principal target: 32 CTN (PROTECTED_PRINCIPAL_WEI)
  • Effective balance target: 32 CTN in phase-1 flow
  • User reward bucket: reward-like amounts potentially claimable under claim-state constraints
  • Principal repair and recovery buffers: non-user buckets used to restore protection first

Actual Vs Effective Balance

Risk logic evaluates both:

  • actualBalanceWei
  • effectiveBalanceWei
  • maxEffectiveBalanceWei

State transitions distinguish reduced effective balance, warning, recovery, stop-loss, quarantine, and healthy states.

Reserve Coverage

Each seat can have reserve coverage settings:

  • limit
  • minimum required
  • proof timestamp and proof hash

Reserve usability is freshness- and threshold-dependent.

Consensus Observation Vs Physical Receipt

  • consensus observation can change risk or smoothing exposure
  • physical receipt can fund actual inflow and buckets
  • both paths are source- and idempotency-tracked
  • double counting is prevented by source and receipt uniqueness checks

Dust, Recovery, Stop-Loss

Dust and recovery states are explicit policy modes affecting claim enablement and advance behavior. Stop-loss and fail-closed states disable normal running payouts.

Settlement

Final settlement computes covered principal and residual reward eligibility with principal-first ordering and smoothing recoup behavior.

Operational Detail

The economic model protects principal first, treats receipts and consensus observations as separate evidence streams, and prevents claimable value from reappearing without new verified economic input.

Required Checks

  • Verify source manifest and generated inventory if the claim path changed.
  • Read current risk observation, receipt ledger, reserve coverage, claim mode, pending claim, and gatekeeper caps.
  • Confirm the caller is the beneficiary or an authorized executor for the required scope.
  • Confirm no incident, stale oracle, slashing, exit, or settlement blocker changes the allowed path.

Failure Handling

A failed claim is not automatically a contract defect. Preserve revert data, current reads, and source evidence. Retry only after identifying whether the failure belongs to Upgrade governance, Deposit permissioning, Custody/readiness, or Economic/claim safety.