Cash-backed exit commitments
A buyer reserves cash for one specified collateral lot and one named beneficiary during an exact exercise window.
In this chapter
What the buyer commits
Creating a commitment transfers fresh, exact quote assets from its buyer into escrow. The contract records the exclusive beneficiary, collateral token and quantity, cash payment, opening timestamp and expiry. There is no partial exercise or early cancellation.
Every commitment has its own funded obligation. Aggregate cash checks prevent newly contributed money being silently used to cover an existing shortfall or one claimant consuming another commitment’s backing. No premium is charged or distributed by this version.
Exercise and expiry boundaries
Only the named beneficiary can exercise. Exercise is allowed at both the opening and closing timestamps. It transfers the entire specified collateral lot to the buyer and pays the full quote amount to the beneficiary in one transaction. Both token legs require exact balance changes.
Only strictly after expiry can unused cash be refunded. Anyone may request cleanup, but cash always returns to the original buyer. Each commitment settles once. A transaction uses the block timestamp at inclusion, not the time its review was opened.
What this does not protect
This module is independent of the loan contract. It does not automatically bind a defaulted loan, reserve its collateral, purchase a protection premium or create an insured lending position. A beneficiary must actually control and approve the collateral delivered at exercise.
An integrated option or default settlement requires an additional reviewed design specifying exclusive collateral rights, exercise authority, premium funding and loss allocation. This experiment is not a reason to enable arbitrary memecoin collateral. Asset restrictions, insufficient backing, chain availability and administration can still prevent settlement.
Pause and recovery
A risk pause stops new commitments while preserving existing exercise and expired refunds. Terminal recovery stops ordinary settlement. Recovery snapshots preserve recorded commitments independently of whether the quote token can be read.
Upgrades, recovery activation and each recovery transfer require both administrators. Available snapshot flags distinguish an unreadable balance from a measured zero. Historical accounting does not guarantee reimbursement after funds are removed.