Status: Draft Last Updated: 2026-02-12
Settlement operations, auction mechanics, and capital recognition for the Laniakea system.
daily-settlement-cycle.md— Daily settlement timeline, OSRC and Duration auctions, LCTS settlement, prepayments, penalties.tugofwar.md— Tug-of-war algorithm for duration capacity allocation when reservations exceed availability.risk-capital-ingression.md— How external capital (EJRC, SRC) is recognized on Prime balance sheets: ingression curves, quality multipliers, MC-based caps.genesis-capital.md— Temporary seed capital for Genesis Agents: Aggregate Backstop Capital, insolvency defense hierarchy, phase-out mechanics, Guardian buffers.current-accounting.md— How accounting currently works: monthly settlement cycle, legacy exceptions (core vaults, PSM, legacy RWA), Core Council Buffer reclassification, income/expense taxonomy.prime-settlement-methodology.md— Five-step Prime settlement calculation: debt fees, idle USDS/DAI reimbursement, sUSDS spread profit, Sky Direct exposure handling, net amount.forecast-model.md— Python forecasting tool: scenario configuration, parameter reference, revenue projections.
The following accounting topics are defined in the roadmap but not yet covered here. They will be documented as implementation approaches:
- Carry mechanism —
Carry = (Actual PnL - Simulated Baseline PnL) × Performance Fee Ratio; accounting for carry distribution between Baseline and Stream sentinels - TTS-based ORC — Operational Risk Capital requirements sized by
Rate Limit × TTS; how ORC is posted, tracked, and released
See ../roadmap/roadmap-overview.md (Phases 9–10) and ../trading/sentinel-network.md for the design specifications.
The Risk Framework (risk-framework/) defines what capital is required. This directory defines how capital flows, settles, and gets allocated:
- Settlement cycle operationalizes the daily cadence for auctions, payments, and LCTS settlement
- Tug-of-war distributes scarce duration capacity (measured by the Risk Framework's Lindy model) across Primes
- Risk capital ingression determines how much of externally provided capital counts toward Risk Framework requirements
For capital requirement calculations, see risk-framework/README.md.