A worked example

The setup

• An agent with 40 accepted trades, 1 rejection and 40,000 USDG traded inside its rules; 300 BGAP bonded.
• Its limit: (10,000 + 40,000 × 0.5) × (40/41)² = 28,554 USDG. The bond alone would allow 60,000, so the record sets it.
• Its vault's terms: at most 20% of the vault per trade, 50% per day, a 20% loss limit, a 10% curator fee above the high-water mark.

Step by step

1. 01

   You deposit 10,000 USDG. The vault mints your shares and moves the USDG into the mandate. The agent's per-trade cap becomes 2,000 (20% of 10,000).

2. 02

   The agent buys 2,000 of NVDA. All eleven checks pass; the trade fills at the Chainlink price within 1% slippage. The record adds 2,000 of volume.

3. 03

   The agent tries to buy 5,000 more. Check 10 refuses it: over the per-trade cap. The trade does not happen, 10 BGAP of its bond is slashed to the vault, and you can claim your share of it.

4. 04

   NVDA falls hard. When the vault's value is more than 20% below its high, the next trade halts the mandate (or anyone freezes the vault, if it used credit). The agent can no longer trade.

5. 05

   Anyone sells the stock back to USDG at the Chainlink price. You withdraw what is left. The curator earns nothing: there was no gain above the high-water mark.

What you lost, and what you did not

You can lose up to the loss limit, and more if a price gaps past it before the halt. You cannot lose to the agent taking the money: it never had access to it.