Senior and the Court

#Payment order

Senior is paid first. The Court sits behind Senior, takes the junior position, and absorbs losses before Senior does. The Court receives the residual fee flow because it accepts that greater risk.

The interface must keep tier, loss order, fee claim, withdrawal terms, and any caps visible before capital authorization.

#Senior

• Open to everyone in the reference model.
• Receives base lending yield plus a share of desk fees.
• Paid before the Court in the waterfall.
• Exact Arc lending integrations remain unannounced.

#The Court

• Gated by the reference protocol’s access token.
• Junior to Senior and first to absorb a loss.
• Receives residual desk fee flow.
• Composed of thirty-two seats with persistent wallet-like state.

#Seat as object

A seat is not an avatar or decorative NFT. It is a financial object. Its address, deposited capital, fee history, and share travel together when ownership changes.