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For bondholders

Cover for a bond position, paid by proof.

Hold a tokenized bond and worried about a missed coupon?
Buy cover and pay a premium.
If the issuer defaults, you are paid from a reserve that was funded before the cover was ever sold.

Why buy cover here

Protection that settles itself

No adjuster, no waiting on a decision.
The default is what triggers the payout.

Automatic, proof-settled payout

On a default there is no claim to file. Anyone can run the settlement, and a verified proof releases your payout from the reserve.

Your position stays private

How much cover you buy is stored only as a Poseidon commitment. The protocol enforces the totals without ever revealing your size.

Funded before it is sold

Cover can never exceed the reserve behind it. You are backed by collateral that is already on-chain, in claw-proof, freeze-proof assets.

Your payout

What happens when a bond defaults

Four steps. You only act in the first one.

01 / You

Buy cover

You buy cover on your position and pay a premium. Your cover size is committed privately; only an aggregate is public.

02 / The issuer

Misses a coupon

An expected coupon does not arrive in full by the deadline. The shortfall is measured from on-chain payment data.

03 / Anyone

Proves it

The settlement program proves who is owed and by how much, in zero knowledge, by the published formula.

04 / The contract

Pays you

Stellar verifies the proof and the reserve pays your cover, scaled to the realized shortfall. No one had to approve it.

The number

How your payout is sized

The formula is published and pinned to the instrument.
A proof attests it was followed exactly.

your payout = your cover × (shortfall ÷ owed)
A full default pays your cover in full; a partial default pays it pro-rata. The sum of all payouts can never exceed the reserve.
If the issuer pays on time, the shortfall is zero and there is nothing to settle. Protection that did not trigger cannot be claimed, by anyone, which is exactly what keeps the reserve sound for the holders who do need it.
Questions

What bondholders ask

Do I have to file a claim?
No. There is no claims process and no operator to convince. A default is settled by anyone running the proof, and the contract pays you on verification.
Can anyone see how much cover I hold?
No. Your cover is stored as a commitment. The protocol checks that total cover never exceeds the reserve without seeing each holder's amount.
What if there is not enough in the reserve?
Cover can never be sold beyond the reserve in the first place, and total payouts are capped at the collateral. Solvency is enforced on-chain, not promised.
Could an admin block or redirect my payout?
There is no admin path to funds. The only way the reserve moves to a payee is a verified settlement proof. No pause-and-pay, no override.
Is this live?
This is a testnet build. The contracts are deployed and a full default-to-payout has already executed on-chain. See it on testnet ›
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