Think of xRWA as a set of sealed boxes. Each vault holds one security, one issuer and one strategy. The box has its own claims and accounting, so a neighboring vault cannot spend its reserve.
The five questions
- What are you entering? One isolated vault, not a shared pool of unrelated exposures.
- Where does the money come from? Senior cash and junior risk capital are matched before the model creates receipts. Unmatched cash stays queued.
- What can stop a new position? The admission controller checks reference price, funding, issuer state, exposure limits and modeled exit capacity.
- What do the receipts mean? Senior has priority in the claim order. Boost receives the residual value, so it generally absorbs losses first. Neither is guaranteed principal.
- Can you leave? Only a valid cash, matched or paired in-kind route can support an exit. Displayed reference value is not the same as available cash.
What this page is not saying
Senior priority is not guaranteed principal, a displayed value is not a guaranteed buyer, and nothing here is investment advice.
Open the Architecture workspace for the detailed flow, or try the calculator with your own assumptions.