Distributions

Distributions get triggered on two instances: distributing yield and distributing proceeds on exits - please see the corresponding pages for more details. While the distribution mechanism is similar, the process slightly differs.

Snapshot and math

At the distribution block the vault snapshots total supply S (vault tokens in circulation) and each holder balance s_i. If the net yield to distribute is Y_quote (in quote currency units to be represented by EVEC), the contract mints Y_quote EVEC and sends EVEC_i = Y_quote · (s_i / S) to each holder. Rounding follows ERC-20 rules. Any remainder (dust) stays with the vault and is added to the next distribution.

Example: Supply S = 1,000,000 vault tokens. Holder A has s_A = 25,000 (2.5 percent). Net yield to distribute Y_quote = 50,000 (in quote currency units). The vault mints 50,000 EVEC and transfers EVEC_A = 50,000 · (25,000 / 1,000,000) = 1,250 EVEC to A. All other holders receive pro rata. If 7 EVEC remain due to rounding across thousands of accounts, those 7 EVEC carry into the next distribution.

Edge cases and guardrails

• Transfers around the snapshot: whoever holds vault tokens at the snapshot block receives EVEC. There is no look back to deposit times.

• Block reorgs: the contract reads the finalized block state when computing balances. In chains with probabilistic finality, consider waiting a few blocks before publishing the memo.

• Negative or corrected distributions: issue a small “top-up” or a separate corrective distribution, never attempt to claw back EVEC.

• Pause interactions: you may pause new deposits before a distribution if needed for operational clarity. Trading remains available unless a material incident requires a broader pause.

Proceeds Escrow & Redemption Claims

Proceeds Escrow (non‑interest‑bearing): Any cash proceeds linked to an asset (sale proceeds, insurance recoveries, licensing/exhibition fees) are held in a segregated, non‑interest‑bearing escrow (client‑money/trust account with a supervised PSP/EMI). No interest accrues. Only KYC/AML‑verified beneficial holders may claim their pro‑rata share. Unclaimed amounts remain segregated and are not re‑invested.

Redemption: A holder with 100% of a given asset token (or a DAO‑set super‑majority under a drag‑along) and completed custodian KYC may redeem the underlying asset in accordance with the custody deed.

Communications: The protocol will not market “yield”, “APY”, or “value growth” from escrow; distributions are framed strictly as property‑claim settlements upon realisation and claim.