The operating cycle

Every fund operates a period close: a valuation cut-off, a mark taken before commitments are accepted, a rule that nobody subscribes at a price they already know. Those rules are what stands between a holder and being diluted by somebody else’s trade, and in a fund they are enforced by people.

Here they are enforced by the order the postings run in.

Ninety days, then one day

Reserve accrual and Hazard run for ninety days without settlement. Nothing transactional happens in that period beyond issuance and the daily accrual itself.

Everything else happens in the final twenty-four hours. The cycle length is fixed when an instance is deployed rather than adjusted in operation, so the window arrives on a schedule that is known in advance and cannot be moved to suit a result.

Inside the window, in order

Marks. The risky book is marked. Nothing that follows can run until this has happened, which is what makes the valuation a cut-off rather than an input somebody supplies later.

Settle. Profit and loss are attributed through the waterfalls.

Composition election. Equity burns or mints A-pool kUSD. No asset moves and none crosses between the custodians.

Commit. Bond holders stake and give notice. They are committing after the book has been marked and the period’s economics attributed, so they cannot commit at a price they already know the outcome of.

Q_A election. Equity answers the redemption its position produced. The default is to honour in cash.

Trigger. Capital flow, expiry and roll are posted atomically.

Open. The next cycle opens under the distribution gates.

Why that order and not another

Two constraints do most of the work.

Bond holders commit only after the book has been marked and the period’s economics attributed. That is the subscription rule of a fund, expressed as a sequence: the price is already fixed by the time a commitment can be made, so there is no window in which new capital can enter at a stale mark.

Equity withdraws only after the relevant capital flows have landed. The residual cannot take a distribution out of a cycle whose obligations have not yet settled.

Neither of these is a prohibition that somebody enforces. The function that would run the stages in another order does not exist, so the discipline is a property of the code rather than of the operator.