How We Get Paid (Settlement & Disbursement)
This is the operational cashflow path. The binding version must match executed agreements.
Payment events (typical)
- Facility close / initial draw: lender funds the SPV under the credit agreement.
- Ongoing fees: custody/insurance/legal/admin paid per budget.
- Distribution events: revenue proceeds, refinance, or liquidation proceeds distributed per waterfall.
Waterfall (conceptual)
- First: taxes, third-party costs, custody/insurance, required reserves.
- Then: lender interest and principal per the facility terms.
- Then: program fees and agreed compensation to operators/sponsors.
- Then: investor / holder distributions (if applicable).
Exact priority order comes from the executed facility + token/participation documents.
Controls (why this is bankable)
- Custody control agreement governs who can move the asset and under what conditions.
- Evidence is anchored on XRPL (immutable references to the appraisal + master record hashes).
- Disbursements use documented approvals and accounting logs (ops runbook).
Mermaid: Funding → Controls → Payment
flowchart TD
L[Lender / Facility] -->|Funds| S[SPV]
S -->|Pays| V[Vault Custody + Insurance]
S -->|Pays| O[Operations / Legal / Admin]
S -->|Distribution| P[Participants (per waterfall)]
A[Asset in Custody] --> C[Control Agreement]
C --> E[Enforcement rights]
D[XRPL Evidence Anchor] --> R[Reduced disputes / audit trail]
Where to verify in the repo