TESTNET

Vaults · Credit Machine · demo

Model credit.
Before credit breaks.

Pooled liquidity in an XLS-65 vault, fixed-term loans through an XLS-66 loan broker, and the LiquidLabs layer on top: optional collateral with a haircut, a first-loss reserve, and a deterministic Rescue Window that lets independent supporters cure a distressed loan before it defaults — priced, time-boxed, settled to the lender, never to the borrower.

Open the Credit Lab Run the state machine Read the model →

Four layers, one story

What is native, what is ours.

01 · Native

XLS-65 Vault

Depositors pool one asset — XRP, an IOU such as RLUSD, or an MPT — and hold shares that are themselves an MPT. AssetsTotal, AssetsAvailable and LossUnrealized give every share a price the ledger computes.

02 · Native

XLS-66 Loan

A loan broker bound to the vault posts first-loss cover, signs a two-party LoanSet with the borrower, collects LoanPays and can impair or default a loan with LoanManage. Fixed term, uncollateralized by design.

03 · LiquidLabs

Collateral & health

An optional asset lock with a haircut, a first-loss reserve, and a health engine that recomputes coverage and payment stress on every event — so a missed payment is a state, not a surprise.

04 · LiquidLabs

Rescue Window

After grace, a frozen snapshot and a five-part admission test. If rescue preserves value, independent supporters fill a target pro rata; funds settle to the vault, claims are minted with new-money priority, every step leaves a receipt.

Lifecycle

Seven stages. Every transition has an actor, a condition and a consequence.

  1. 01Requestamount · term · purpose
  2. 02Underwriteidentity · score · limits
  3. 03Securecollateral · haircut · reserve
  4. 04FundXLS-65 vault → XLS-66 loan
  5. 05Monitorhealth · payments · early warning
  6. 06Rescuegrace · auction · cure or refinance
  7. 07Closerepay · release · score update

State logic: OFFER → ACTIVE → GRACE → RESCUE_OPEN → CURED or REFINANCED → ACTIVE → CLOSED. If rescue would destroy value: GRACE → DEFAULT → RECOVERY → LIQUIDATED. Nothing else exists.

No-burn economics

9 % borrower APR, illustrative split

Σ of the parts equals the borrower's contractual rate — nothing is created, nothing is silently moved to new depositors.

  • Senior lender yield
  • Rescue reserve (first-loss buffer)
  • Supporter commitment budget
  • Protocol fee

Reward rescue. Never reward manufactured distress.

  • Beneficial-owner exclusion. The borrower, related parties and linked wallets earn no supporter yield and no Rescue Points on their own loan — the machine refuses the commitment.
  • Vesting and clawback. Points are provisional until the rescued loan has performed; collusion detected later cancels them.
  • Default friction. A missed payment costs score, a rescue carries a capped premium — so IncrementalDefaultCost ≥ MaxRelatedPartyGain + ε holds and strategic default is strictly worse than paying.
  • Capital never reaches the borrower. Rescue proceeds settle to the vault or payoff account; the borrower only ever sees a repayment schedule.

Three presets, one engine

worked

Worked example · 100,000 RLUSD · 12 months · 9 %

The concept's §7: a payment is missed in month 7, a cure target of a few thousand RLUSD opens the Rescue Window, three supporters fill it pro rata.

healthy

Healthy · 50,000 RLUSD · 6 months · 7.5 %

Strong collateral, every installment on time: the state machine never leaves ACTIVE and the vault earns the contractual rate.

microcredit

Microcredit · priced from amount, days and score

A small, short, unsecured loan priced by the disclosed formula: risk-based APR, a fee that covers the expected loss, a bullet or weekly / monthly installments.

stress

Stress · 100,000 RLUSD · thin collateral · 10 %

Collateral worth a fifth of the loan, low recovery odds: the admission test refuses a rescue, the default waterfall shows who absorbs the loss.

Run any of them in the state machine — every action writes a receipt you can export as JSON.

Learn · Vaults · Credit Machine (demo) Credit that stays liquid when a payment is missed

Why this matters

Pooled lending needs more than a loan object: it needs a rule for the day a borrower misses a payment. The Credit Machine makes that rule explicit — rescue only when rescue preserves value, settled to the lender, never to the borrower, with every loss pre-assigned to a tranche.

What happens on the ledger

A vault pools RLUSD and issues shares (XLS-65); a broker posts first-loss cover and signs a two-party LoanSet (XLS-66); LoanPay repays, LoanManage impairs or defaults. The Rescue Window, the claims and the receipts are the LiquidLabs layer — simulated here with recomputable SHA-256 hashes.

Our advantage

A deterministic, time-boxed backstop market with new-money priority and a five-part admission test — explained in thirty seconds, verified from a receipt, and built on the real protocol units so it moves to our own node the day the amendments are enabled there.

  • VaultCreate / VaultDeposit (XLS-65)
  • LoanBrokerSet + cover (XLS-66)
  • LoanSet (two signatures)
  • LoanPay
  • LoanManage (impair / default)
  • Token Escrow (collateral)
  • Credential + Permissioned Domain
  1. Create an offer from a preset and fund it from the vault
  2. Pay on time, then miss an installment and watch the vault impair it
  3. Let grace expire — the admission test opens a Rescue Window or defaults
  4. Commit supporters (try your own wallet: it is refused), settle, read the receipt
Full lesson in the Academy →