What you hold
Three positions, one balance sheet
Liquid kUSD, Bonds and Equity are three distinct claims on one conserved balance sheet, ranked against each other before any gain or loss occurs.
A position in kUSD is a claim on a single conserved balance sheet. There are three, and they are distinct economic roles rather than tiers of one product: liquid kUSD is the senior spendable claim, Bonds are the dated risk-bearing capital beneath it, and Equity is the first-loss residual beneath that.
Most instruments of this kind offer one thing to hold. Syncratix offers three, and the distinction between them is the architecture rather than a product range.
The three are ranked against one another in advance. A loss is allocated in a fixed order and a profit is divided by a different fixed order, both established before the event that produces either. That ordering is a property of the mechanism, not of a policy the issuer applies afterwards.
Liquid kUSD, the senior claim
A spendable, transferable dollar instrument that ranks first. It is compensated by the layer beneath it, through the Hazard rate that Bonds pay for the balance-sheet capacity they use. It carries no asset exposure and no asset return.
Bonds, the risk-bearing claim
Dated positions across forty quarterly maturities to a ten-year horizon. A Bond buys balance-sheet risk deliberately and is paid for carrying it. Losses reach the Bond book only where Equity cannot absorb them.
Equity, the first-loss residual
The junior position. It absorbs loss first, ranks last in a wind-down, and takes the residual economics and the Reserve accrual in return. It is not a tokenised claim, and its distributions are gated.
What is not a position
Two further roles appear in the model and neither is something to hold. The asset manager is a bounded allocation role, authorised to trade within custody and allowlist constraints. The marking authority is a nominated seat that asserts the values the system cannot measure directly, separated by design from the parties that allocate assets or write the ledger.
Both are appointments the issuer makes when configuring an instance.
| L | Liquid kUSD | Senior, freely transferable claim |
|---|---|---|
| B | Bonded supply | Junior dated risk-bearing positions |
| E | Equity | First-loss position |
| Liquid holder | A senior, transferable instrument with compensation funded by the risk-bearing layer beneath it |
|---|---|
| Bond holder | A dated market position that deliberately accepts deployed risk and participates in the defined profit economics |
| Issuer, Equity | Residual economics and Reserve accrual, subject to first-loss exposure, the distribution gate and seniority constraints |
| Asset manager | A bounded allocation role within custody, allowlist and measured-accounting constraints |