Skip to main content

​
Capital roles are not interchangeable

The reference design separates the financial roles that fund credit and absorb losses.

​
Why separation matters

Combining these balances would make priority and loss treatment ambiguous. The design instead records each class independently, defines its eligibility for a given loss path, and prevents one class from being represented as another. Provider capital is not a guarantee against loss. The design describes accounting priority and risk allocation, not a promise of principal protection or return.