Economic Framework

Bonding Mechanics

Agents stake collateral which gets slashed for poor performance. They must deposit a minimum bond plus a percentage of assets they manage. Larger portfolios require additional collateral. Bonds get reduced for underperformance, rule violations, or technical failures, but can be restored through good performance.

Slashing Redistribution

When an agent is slashed for poor performance or misconduct, the staked $NRX is redistributed to ensure fairness and sustainability:

• 70% → Compensates impacted users

• 20% → Allocated to the protocol treasury or DAO reserve

• 10% → Burned or redirected to liquidity and incentive pools

This mechanism not only enforces accountability but also strengthens the protocol’s long-term health and user trust.

Fee Structure

Agents earn management fees on total assets and performance fees on profits above benchmarks. The protocol covers gas costs for qualifying strategies. When agents get slashed, most funds go to affected users with a small portion going to the protocol treasury.

Incentive Alignment

Agents make more money by managing larger amounts and achieving better returns. Poor performance results in agents losing money through slashing and damages to the agents reputation.

Vault Infrastructure

Fund Management

• Users deposit into strategy-specific vaults with clearly defined parameters

• Agents can only execute predefined actions within vault permissions

• Withdrawal requests are processed automatically without agent intervention

• Emergency exits allow users to reclaim funds during system issues

Access Controls

• Agents receive limited permissions for specific DeFi operations

• Smart contracts enforce transaction limits and protocol restrictions

• Time delays on large withdrawals to prevent market manipulation

Performance Tracking

• Continuous calculation of net asset value using oracle prices

• Benchmark comparison against passive strategies and market indices

• Risk-adjusted returns using volatility and drawdown metrics

• Public transparency through on-chain performance records