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Capital Rollover Flow

The capital rollover is the core evergreen operation — the mechanism by which the vault remains continuously deployed. Capital from a settled position is immediately redeployed into a new market.

Trigger: A position settles (resolves NO) and the operator is ready to redeploy. Caller: Governance (operator)

Steps

  1. Position in Slot N is nearing maturity (e.g., 7 days out). Operator begins scouting the next market.

  2. Operator identifies the next market meeting all selection criteria. Deploys a new MarketAdapter contract for it.

  3. Slot N settles. Operator calls closePosition(N):

  4. Adapter claims settlement value
  5. USDC returns to idleReserve

  6. Slot N becomes EMPTY

  7. Operator calls openPosition(N, newAdapter, assets, maturity):

  8. Capital from the settled position (now in idleReserve) is deployed into the new market
  9. entryPrice is not supplied — it is returned by adapter.buyNoShares() and assigned automatically
  10. New adapter acquires NO shares
  11. Slot N is active with a fresh position

  12. Accrual continues seamlessly

  13. Vault continues operating without any yield gap — at no point is slot N idle for more than the operator's scouting time.

Ideal Stagger Pattern

With 4 slots and ~60-day positions entered ~15 days apart, one slot settles approximately every 15 days:

Slot 0: entered Day  0,  matures Day 60  ──┐
Slot 1: entered Day 15,  matures Day 75  ──┤ Always 3-4 active positions
Slot 2: entered Day 30,  matures Day 90  ──┤
Slot 3: entered Day 45,  matures Day 105 ──┘

Day 60: Slot 0 settles → redeploys → matures Day 120
Day 75: Slot 1 settles → redeploys → matures Day 135
Day 90: Slot 2 settles → redeploys → matures Day 150
...

Redeployment Timing

  • Target: Redeploy within 7 days of settlement
  • If no market found within 7 days: Capital stays in idleReserve. Vault operates with fewer active positions. The operator must communicate this to stakeholders.
  • If all 4 slots are idle: Vault earns zero yield. Investors hold a stablecoin-equivalent position subject to the 0.5% exit fee. Operator must communicate immediately.

Why Staggering Matters

Staggering ensures: - No bunching — multiple positions settling at once would temporarily reduce aggModeledNAV and could spike the gap - Continuous yield — investors are always accruing from at least 2–3 positions - Predictable liquidity — the operator knows approximately when each settlement will arrive, enabling planned redeployment