Yield & Exit distributions
Exotic Vaults Exit Coupon (EVEC)
EVEC (ERC-20) is a fungible exit coupon. It records the amount owed by an issuer and the payout policy, which defaults to $XVAULT at MVP. EVEC can be transferred until redeemed or reinvested.
Distribution sequence
Custodian confirms an off chain exit or yield event.
Protocol mints EVEC to the vault.
The vault distributes EVEC to current vault token (ERC-20) holders pro rata at the distribution block height.
Holders choose to reinvest by burning EVEC for more vault tokens, or redeem by completing checks and receiving payout in $XVAULT.
Pro rata math
If total supply is S and you hold h, and the event mints E units of EVEC, you receive floor(E × h ÷ S). Tiny remainders that cannot be split are kept at the vault and rolled into the next event to avoid dust.
Redemption flow
Checks include KYC and any issuer specific contract steps. Payout is in $XVAULT first. From there, you decide whether to hold, trade for USDC on pools, or off ramp through your preferred path. The foundation targets a $0.30 policy floor for $XVAULT via buybacks and liquidity top ups when needed. This is a policy, not a guarantee.
Reinvestment flow
Burning EVEC to increase vault tokens (ERC-20) is on chain and does not require new KYC, since you are not redeeming to money.
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