EMT Receivables
What this is (and what it is not):
EMT receivables let a seller pre-allocate part of a future milestone release (the cash that will flip from Locked EDSD → Unlocked EDSD when the stage passes) to a financier or vendor: proof-gated receivables: nothing pays until the milestone is proven (PoV PASS → EMT), and the buyer has must-funded the tranche. There is no tokenized IOU that can float around off-rail; the allocation lives in the contract and settles automatically at Release.
Settlement law remains unchanged: No EMT, no funds · Must-fund before shipping · One-Claim · Locked EDSD → Unlocked EDSD only on proof · 50% of every protocol fee burns in EDM (at Release). EDSD is platform-bound; off-platform cash-out is after schedule completion.
A) Objects & lifecycle
A1. EMT (the switch):
Non-transferable receipt minted when a gate passes (Pre-Ship / On-Board / Customs / Arrival&QA):
It is the only switch that allows the slice to pay:
A2. Receivable Allocation (RA):
A contract entry tying an upcoming Release (EMT target) to a beneficiary (e.g., financier or vendor), with amount, priority, and terms:
Always funded-on-proof: settles only if the linked EMT mints and the tranche is must-funded.
Multiple RAs can exist on one stage/sublot with a defined waterfall:
States:
PENDING → (EMT PASS) → SETTLED or PENDING_FUNDS → SETTLED or EXPIRED/CANCELED(if MPA rules apply).
B) Eligibility & limits (what can be allocated)
Eligible cashflows: future stage slices (per order/supplier/stage/sublot). Already-released Unlocked EDSD cannot be “allocated retroactively.”
Cap per seller tier:
S0: up to 30% of expected slice value
S1: up to 60%
S2: up to 90%
Minimum granularity: sublot-level (container subset) supported; each child EMT has its own RA set.
No double-pledge: the same portion of a slice cannot back two RAs (One-Pledge ledger for receivables).
Counterparty: must be KYC/KYB-whitelisted; for vendors (carrier/SGS/warehouse/OEM) RAs can ride the assignment rail (see §H).
C) Waterfall at Release (who gets paid first)
When Release executes for the stage/sublot:
Protocol fee (0.5% per stage, cap) is consumed; 50% burns in EDM (posted with burn hash):
Receivable Allocations settle by priority, then pro-rata inside a priority band, up to their face + accrued interest/fees:
Vendor assignments (if any) settle (or they can share priority tier 1—governed):
Residual Unlocked EDSD credits the seller:
Priority defaults: Tier-1 = financiers; Tier-2 = vendor assignments; Tier-3 = seller residual. DAO can swap Tier-1/2 ordering per lane; burns are unaffected.
D) Economics (how RAs earn)
Currency: EDSD.
Pricing: simple APR (per-stage day count) or fixed discount; paid only on settlement.
Fees: platform 1% “funded-on-proof” fee only when the RA settles (same as assignment fee class; not burned).
No protocol fee for creating/canceling an RA; protocol fee applies when the slice releases.
Example: On-Board slice $3.96M; S2 cap 90% → up to $3.564M allocable. Financier RA $1.5M @ 8% APR, expected 20 days → accrual ≈ $6,575. Release pays fee $19,800 (burn $9,900), then RA $1,506,575, then vendor assignment(s), then seller residual.
E) Risks & guards (what can delay/deny payout)
Performance risk: EMT not minted (proof fails) → RA stays PENDING; no payout; no platform recourse to seller beyond contract rules.
Funding risk (must-fund): buyer misses top-up → RA shows PENDING_FUNDS; accrues late interest per MPA; may use Assurance Pool if enabled (see “Risk & Coverage”).
Revocation risk: attestation revoked → freeze only downstream slices; RA clock pauses; resumes after corrective EMT.
Sublot split risk: partial pass pays pro-rata on the settled child EMT(s); remainder waits.
Cancellation: if the stage is canceled before proof, RA cancels; no fee; optional break fee per contract (off-rail).
F) Defaults & enforcement (if Release never happens)
No on-rail “forced release.” Cash only moves on proof.
MPA paths govern remedies: cancel & refund, replacement sublot, or re-award; RAs follow the replaced claim when replaces: old_claim_id is minted.
Assurance options (governed, optional): Payment Assurance Pool may front the next slice when PENDING_FUNDS persists; pool becomes the RA beneficiary and recovers on buyer top-up (see “Risk & Coverage”).
G) Marking, exposure & reporting
Mark-to-EMT clock: we show days to expected Release, current stage probability (derived from historical pass rates), and counterparty health (top-up SLA history).
Concentration caps: per financier per supplier/lane; global per lane.
Dashboards: RA inventory, expected cash dates, accrued interest, cure timers for PENDING_FUNDS.
H) Vendor assignments vs. financier RAs (two ways to pay upstream)
Vendor assignment (carrier/SGS/warehouse/OEM): funded-on-proof credit created by seller; 1% fee when it settles; sits by default in Tier-2 of waterfall.
Financier RA: external capital line; sits in Tier-1 by default; same settlement mechanics.
Both are in-platform, auto-settled, and non-transferable entries (no off-rail IOUs).
I) APIs & webhooks
Create / manage:
POST /v1/defi/ra { order_id, stage, sublot?, amount, apr|discount, priority?, expiry? } → { receivable_id }:DELETE /v1/defi/ra/{id} (if still PENDING):GET /v1/defi/ra?order_id=… (list; exposure & accruals):
Events:
defi.ra.created { receivable_id, order_id, stage, amount, priority }:defi.ra.pending_funds (top-up missed; accrual on):trade.milestone.passed → defi.ra.settled { receivable_id, paid, accrual, net }:trade.slice.frozen/unfrozen (revocation scope):defi.ra.canceled (stage canceled or expired):
J) KPIs & SLOs
RA settlement rate: ≥ 95% (ex-canceled)
Average time to pay after EMT PASS: ≤ 60s p95
PENDING_FUNDS cure p95: ≤ 48h (or policy with Assurance Pool)
Loss rate (principal): 0 (target; ex-MPA cancelations)
Vendor assignment settlement latency: ≤ 60s p95 after Release
K) Worked example
Buyer awards RFQ; MPA sets 20/60/20, must-fund after Pre-Ship EMT.
Seller creates RA on On-Board for $1.5M @ 8% APR, 20-day expected.
Pre-Ship PASS → buyer must-fund remainder; RA shows green “funded” indicator.
On-Board PASS → EMT; Release runs:
Fee $19,800; burn $9,900 EDM; treasury $9,900.
RA settles $1,506,575 (principal + accrual); 1% RA fee $15,065 posts (non-burn).
Vendor assignment settles $220,000 (carrier); 1% fee $2,200 posts.
Seller receives residual Unlocked EDSD.
Receipts show PoV hash, claim_id, fee line, burn hash, RA settlement, and residual; Trade ledger reconciles escrow.
L) Governance knobs
Set tier caps (S0/S1/S2) and priority ordering (e.g., let vendor assignments share Tier-1).
Define max APR/discount, max tenor, exposure caps per lender/lane, and PENDING_FUNDS accrual rules.
Enable/size Assurance Pool for must-fund gaps (see “Risk & Coverage”).
Cannot: bypass PoV/One-Claim, settle without EMT PASS, alter fee constants/caps, or touch 50% burn.
Plain recap
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