Structured finance
(EDSD = platform stable · EDM = fee/burn & governance · PoV/EMT/Locked–Unlocked EDSD as defined)
Core principle
Finance should follow facts, not forecasts. On EDMA, cashflows are tied to milestones proven on-chain. Funding sits as Locked EDSD, turns Unlocked EDSD only when an EMT mints, and repayments sweep automatically from those releases. No proof, no draw. No EMT, no funds.
Why structured finance fits this rail
Traditional programs fund against estimates and paper covenants; risk hides in timing and documents. EDMA turns those moving parts into timed, evidence-gated events—so you can build credit products that are simple to understand and easy to enforce:
PoV defines what counts as “ready”, “on board”, “cleared”, “received & QA”.
EMTs mint only when those facts are verified.
Locked EDSD holds money exactly where it belongs—by supplier and stage—until proof flips it to Unlocked EDSD.
One-Claim prevents duplicate use of the same evidence.
Burns (50% of each protocol fee) remain tied to real releases; rewards never come from burns.
Building blocks
A short narrative first, then the checklist.
Funds flow into an order or a pool as Locked EDSD. As milestones pass and EMTs mint, the platform sweeps Unlocked EDSD through a waterfall—interest first, then principal, then surplus to the operating party. If a gate fails, the draw for that slice is simply not available; if a doc is later revoked, downstream slices pause until the record is clean.
Collateral: milestone-linked Locked EDSD and the right to substitute/replace sub-lots under the MPA.
Waterfall: Unlocked EDSD → interest → principal → fees → surplus to supplier/buyer per contract.
Triggers: milestone fail, revocation, concentration breach; platform auto-pauses only what’s affected.
Reporting: receipts with proof links, fee lines, and EDM burn hashes for every release.
Products
Supplier Advance
A revolving line for a single order, secured by the order’s Locked/Unlocked EDSD slices.
How it works (seller view): after Pre-Ship EMT (production proven), you can draw a portion of the upcoming slice. At On-Board, the release arrives and the platform sweeps interest first, then principal—same screen, no new tools.
Draw windows: open after Pre-Ship; scale up at On-Board; finalize at Arrival.
Typical LTV bands: 0–30% (Pre-Ship), 40–70% (On-Board), 80–90% (Arrival).
Repayment: automatic from Unlocked EDSD; off-platform cash-out stays blocked while any balance remains.
Cost: target 3–4% APR, day-count accrual; no prepayment penalty.
Top-Up Bridge
A small, time-boxed bridge to cover the next milestone until the buyer’s wire lands. It starts when Pre-Ship EMT mints and ends when the top-up posts.
Tenor: hours to a few days.
Repayment: immediate sweep from the incoming top-up (minted as Locked EDSD).
Use: keep bookings on track over weekends/holidays without relaxing must-fund before shipping.
EMT Pool
A revolving pool across many orders for a buyer or supplier cohort. Investors fund the pool in EDSD; the platform allocates Locked EDSD to live orders and sweeps back Unlocked EDSD as gates pass.
Allocation rules: concentration caps by counterparty, lane, stage; One-Claim checks across the pool.
Triggers: pool-level delinquency (stalled gates), revocation ratio, or top-up misses → new draws pause; amortization begins.
Waterfall: pool interest → principal → fees → residual to originator per program charter.
PoV Asset Credit
A credit line against PoV-verified token holdings (e.g., Energy 1 MWh or Carbon 1 tCO₂e). Collateral sits in a custody vault; LTV reflects method/region, liquidity, and revocation risk.
LTV guide: 30–60% with TWAP oracles and circuit-breakers on thin books.
Repayment: EDSD from token sales or cash inflows; liquidations follow on-chain rules if covenants break.
Compliance note: program documentation determines the offer format (e.g., private placements to qualified investors). Public marketing of notes is out of scope.
Tranching & waterfall
Keep it simple, keep it enforceable.
Classes: Senior (A) first-pay, Mezz (B) buffer, First-loss (F) alignment capital.
Source of truth: the EMT schedule; every tranche knows when it’s due to be paid.
Waterfall order: fees (incl. servicing), A interest → A principal, B interest → B principal, then F.
Triggers: if exceptions accumulate (e.g., X% gates paused beyond SLA), the pool auto-amortizes and new draws pause.
Replacement mechanics: a failed sub-lot rebinds Locked EDSD to a replacement under the same rules.
Money on the rail
Funding: investors fund EDSD to the order or pool; the platform marks it Locked and pre-assigns it by stage.
Holding: while Locked, EDMA places ~75% of each tranche in short-dated T-bills (70–100 days typical) and ~25% in cash for ops; interest is reported as Treasury Interest with Proof-of-Reserves.
Burns: nothing changes—50% of each protocol fee burns in EDM at each release; structured finance never touches the burn.
Fees: protocol fee (Trade 0.5% per milestone capped; Tokens 4%) remains; borrower interest accrues separately; seller 1% assignment and 0.5% cash-out fees post when they occur.
Monitoring & exceptions
Milestones: we watch review windows, gate SLAs, and top-up deadlines (Pending Funds stops releases).
Evidence: BL + seal photo/number, PSI, customs, DC QA, cold-chain temps. Failure pauses only the affected slice.
Conduct: One-Claim rejects duplicates; brand/authorization checks pause branded goods; sanctions blocks happen instantly.
Disputes: handled by B5 rules; variance math from the MPA applies; outcomes are resume, partial pay, deduct & release, replacement, or cancel & refund.
Every step leaves a receipt and a public proof page; lenders see the same artifacts.
Eligibility & compliance
Borrowers: KYC/KYB sellers (Supplier Advance), KYC/KYB buyers (Top-Up Bridge), clean tier history (see C2).
Lenders: KYC/KYB institutions or qualified participants; program docs determine offer format (e.g., Reg D/Reg S private placements).
Jurisdictions: supported countries only; sanctions and AML enforced; must-fund and One-Claim are non-negotiable.
What you actually experience
Borrower (supplier): I see a credit line appear on the same timeline I use for gates. After Pre-Ship EMT, I draw what I need; at On-Board, the sweep clears it; I never chase settlement. While Locked, I can issue funded-on-proof EDSD to partners so work continues without LC games. I cash out off-platform only when my schedule completes.
Lender: I pick a pool or order with clear milestones. I see Locked EDSD coverage, EMT cadence, variance history, and exposure concentration. I don’t fund guesses; I fund proof. Sweeps arrive at releases with receipts and burn hashes on the same page.
Plain recap
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