Documentation Portal
Project Home
  • Core Documentation
    • Overview
    • Whitepaper
      • Abstract
      • I. Introduction
      • II. Protocol
        • II.I Operation
          • II.I.I Generation of M
          • II.I.II Protocol Fees
          • II.I.III Cancel and Freeze
          • II.I.IV Retrieving Free Collateral
          • II.I.V The Earn Mechanism
          • II.I.VI Removing a Permissioned Actor
          • II.I.VII Example Interactions and Flows
        • II.II Governance Controlled Protocol Actors
        • II.III Governance Controlled Protocol Parameters
      • III. Governance
        • III.I Inputs
        • III.II Operation
          • III.II.I Epochs
          • III.II.II Proposals
            • III.II.II.I Standard Proposals
            • III.II.II.II POWER Threshold Proposals
            • III.II.II.III ZERO Threshold Proposals
            • III.II.II.IV Proposal Matrix
          • III.II.III Checkpoints and Voting
          • III.II.IV Proposing
          • III.II.V Inflation Mechanics
          • III.II.VI Dutch Auction
          • III.II.VII Delegation
          • III.II.VIII ZERO Claiming of Residual Value
        • III.III Governance Controlled TTG Parameters
        • III.IV Immutable TTG Parameters
        • III.V Immutable POWER Parameters
        • III.VI Immutable ZERO Parameters
      • IV. The M0 Economy
        • IV.I Minters
        • IV.II Validators
        • IV.III Earners
      • V. Off-Chain Ecosystem
        • V.I Guidance
        • V.II Off-Chain Actors and Components
    • Adopted Guidance
      • Adopted Guidance v1.30
        • 1. Description of the Adopted Guidance
          • 1.1. Purpose of the Adopted Guidance
          • 1.2. Change Process for the Adopted Guidance
        • 2. Ecosystem Description
          • 2.1. Actors
          • 2.2. Mandatory Contracts
          • 2.3. Duty of Transparency
          • 2.4. Core Operational Flows
            • 2.4.1. Update Collateral Process
            • 2.4.2. Minting M
            • 2.4.3. Retrieval of Collateral
          • 2.5. High-Risk Jurisdictions
        • 3. Eligible Collateral
          • 3.1. Criteria for Eligible Collateral
          • 3.2. Valuation Policy for Eligible Collateral
          • 3.3. Collateral Storage
          • 3.4. Approved Jurisdictions
            • 3.4.1. Bankruptcy Remoteness
            • 3.4.2. Non-Petition and Non-Seizure Provisions
            • 3.4.3. Priority of Payments and Subordination
            • 3.4.4. Regulatory Compliance
            • 3.4.5. Legal and Regulatory Framework
            • 3.4.6. Political Stability
            • 3.4.7. Dispute Resolution
            • 3.4.8. Asset Segregation
            • 3.4.9. Limited Recourse
            • 3.4.10. Investor Protection
            • 3.4.11. Operational Infrastructure
            • 3.4.12. Custody Relationship
            • 3.4.13. Audit
        • 4. SPV Operators
          • 4.1. Contact Information of Currently Approved SPV Operators
          • 4.2. Eligibility Criteria for Approved SPV Operators
          • 4.3. Obligations of SPV Operators
            • 4.3.1. Obligations in the Normal Course of Business
            • 4.3.2. Obligations Outside of the Normal Course of Business
              • 4.3.2.1. Amicable Wind Down Process
              • 4.3.2.2. Non-Amicable Wind Down Process
              • 4.3.2.3. Minter Insolvency
              • 4.3.2.4. Unauthorized Termination of Minter – SPV Operator Agreement
            • 4.3.3. Operational Obligations of SPV Operators
              • 4.3.3.1. Co-signature of the SPV for significant payments
              • 4.3.3.2. Cooperation with Validators
              • 4.3.3.3. Maintenance of Administrative Buffer
              • 4.3.3.4. No Wire Back Instructions
          • 4.4. Guidelines for Submission of Approval Requests
        • 5. Validators
          • 5.1. Contact Information of Currently Permissioned Validators
          • 5.2. Eligibility Criteria for Permissioned Validators
          • 5.3. Obligations of Validators
          • 5.4. Guidelines for Submission of Permissioning Requests
        • 6. BD Minters and Minters
          • 6.1. Contact Information of Currently Permissioned Minters
          • 6.2. Eligibility Criteria for Permissioned Minters
          • 6.3. Obligations of Minters
          • 6.4. BD Minter and Minter Compliance Requirements
          • 6.5. Guidelines for Submission of Permissioning Requests
        • Adopted Guidance PDF Version
      • Adopted Guidance v1.20 (deprecated)
        • Adopted Guidance PDF Version
    • Glossary
    • Disclosures
    • Whitepaper PDF Version
  • Technical Documentation
    • Protocol Technical Specification
      • Main Invariants
      • Variables
        • Protocol Variables Controlled by TTG
        • Protocol Variables And Definitions
        • Protocol Variables Used For Interest Accruals
      • Protocol And M Token Actors And Actions
        • Protocol Core Functions
          • Minter Gateway
            • updateCollateral
            • proposeMint
            • mintM
            • cancelMint
            • freezeMinter
            • burnM
            • proposeRetrieval
            • activateMinter
            • deactivateMinter
          • M Token
            • startEarning
            • stopEarning
            • transfer
          • Interest Calculations And Indices
            • MinterGateway.updateIndex
            • MinterGateway.currentIndex
            • MToken.updateIndex
            • MToken.currentIndex
            • activeOwedM
          • Interest Rate Models
            • Stable Earner Interest Rate Model Contract
            • Minter Interest Rate Model Contract
    • TTG Technical Specification
      • Main Invariants
      • Core Architecture
        • 1. Registrar
          • Registrar Variables and Getters
          • Registrar Core Functions
        • 2. TTG Governors
          • Matrix Of TTG Proposals
          • 2.1 Standard Governor
            • Variables And Getters
            • Governor Proposal State Transitions
            • Core Functions
            • Core Governance Proposals
          • 2.2 Emergency Governor
            • Emergency Governor Variables And Getters
            • Governor Proposal State Transitions
            • Core functions
              • propose(targets[], values[], callDatas[], description): proposalId
              • castVote(proposalId, support): weight
              • castVotes(proposalIds[], supports): weight
              • execute(targets[], values[], callDatas[], description): proposalId
              • setThresholdRatio(newThresholdRatio)
              • getProposal(proposalId)
              • state(proposalId)
            • Core Governance Proposals
          • 2.3 ZERO Governor
            • Variables And Getters
            • Core Functions
            • Core Governance Proposals
        • 3. POWER Token
          • Variables And Getters
          • POWER Token Core Functions
        • 4. ZERO Token
          • ZERO Token Core Functions
        • 5. Distribution Vault
          • Variables And Getters
          • Core Functions
    • Source Code Reference
      • Protocol
        • Protocol Contracts
          • Core Protocol Contracts
            • MToken
            • MinterGateway
          • Abstract Protocol Contracts
            • ContinuousIndexing
          • Protocol Interfaces
            • IContinuousIndexing
            • IMToken
            • IMinterGateway
            • IRateModel
            • ITTGRegistrar
          • Libs
            • ContinuousIndexingMath
            • TTGRegistrarReader
          • Rate Models
            • Contracts
              • EarnerRateModel
              • MinterRateModel
            • Interfaces
              • IEarnerRateModel
              • IMinterRateModel
      • TTG
        • TTG Contracts
          • Core TTG Contracts
            • DistributionVault
            • Registrar
            • Governors
              • EmergencyGovernor
              • StandardGovernor
              • ZeroGovernor
            • Tokens
              • PowerBootstrapToken
              • PowerToken
              • ZeroToken
          • Abstract TTG Contracts
            • ERC5805
            • Governors
              • BatchGovernor
              • ThresholdGovernor
            • Tokens
              • EpochBasedInflationaryVoteToken
              • EpochBasedVoteToken
            • Interfaces
              • IBatchGovernor
              • IERC5805
              • IERC6372
              • IEpochBasedInflationaryVoteToken
              • IEpochBasedVoteToken
              • IGovernor
              • IThresholdGovernor
          • Deployers
            • EmergencyGovernorDeployer
            • PowerTokenDeployer
            • StandardGovernorDeployer
          • TTG Interfaces
            • IDistributionVault
            • IRegistrar
            • Deployers
              • IDeployer
              • IEmergencyGovernorDeployer
              • IPowerTokenDeployer
              • IStandardGovernorDeployer
            • Governors
              • IEmergencyGovernor
              • IStandardGovernor
              • IZeroGovernor
            • Tokens
              • IPowerBootstrapToken
              • IPowerToken
              • IZeroToken
          • Libs
            • PureEpochs
      • Common
        • Contracts
          • Main
            • ContractHelper
            • ERC20Extended
            • ERC3009
            • ERC712Extended
            • StatefulERC712
          • Interfaces
            • IERC1271
            • IERC20
            • IERC20Extended
            • IERC3009
            • IERC712
            • IERC712Extended
            • IStatefulERC712
          • Libs
            • SignatureChecker
            • UIntMath
    • 🏁Audits
    • 🔛Deployments
Powered by GitBook

M0 Project

  • Home
  • Research

Legal

  • Terms & Conditions
  • Privacy Policy

Copyright 2025 M0 Foundation

On this page
  1. Core Documentation
  2. Adopted Guidance
  3. Adopted Guidance v1.30
  4. 4. SPV Operators
  5. 4.3. Obligations of SPV Operators
  6. 4.3.2. Obligations Outside of the Normal Course of Business

4.3.2.2. Non-Amicable Wind Down Process

Once the Amicable Wind Down Period has lapsed, and provided that the Owed $M exceeds 0 and the Collateral Storage still contains collateral, the SPV Operator shall unilaterally and contractually wind down the Minter’s structure through the so-called Non-Amicable Wind Down. In case the Minter has not been de-permissioned before, i.e. if the Non-Amicable Wind Down has been triggered by exceptional conditions described below, the SPV-Operator is required to submit a governance proposal to de-permission the respective Minter. The SPV Operator shall act as a selling agent of the collateral and shall distribute all proceeds in accordance with the rules of the Adopted Guidance. More specifically, as part of the Non-Amicable Wind Down, the SPV Operator shall no longer disburse any proceeds from the sale of collateral to the Minter.

As part of a Non-Amicable Wind Down, in the case a Minter is incapable or non-cooperative of redeeming, a Minter’s set of counterparties could go directly to the SPV Operator for the successful execution of a primary redemption, provided that all core principles of the Adopted Guidance remain intact and that the appropriate contractual obligations between Minter and counterparties regulate those situations.

The SPV Operator shall exercise best effort in reaching the maximum reduction of Owed $M related to the Minter part of the Non-Amicable Wind Down process by, e.g.:

  • Waiting for collateral maturity while interrupting the automatic replenishment (run down the portfolio) if the market conditions require to do so, and subsequently burn such $M on the Minter’s behalf.

  • Selling all remaining collateral on a best effort basis and using all available proceeds to purchase $M on the open market, and subsequently burn such $M on the Minter’s behalf.

  • Enter into contractual agreements to dispose of assets and liabilities to another Minter in the network still in the Normal Course of Business.

Should the SPV Operator, due to market conditions surrounding the purchases, have remaining $M balance in its control, although the Owed $M of the Minter is 0, the SPV Operator shall burn such $M and increase the system-wide implicit overcollateralization. Should purchased $M not be sufficient to fully bring the Owed $M of the Minter to 0, such Owed $M will continue to exist, effectively decreasing the Protocol-wide overcollateralization. Governance should act proactively to ensure that such a scenario will never materialize, by appropriately monitoring individual collateralization levels and/or de-permissioning Minters that constitute excessive risk for the Protocol.

In addition to Minter De-Permissioning, the Adopted Guidance considers additional circumstances that should lead immediately to a Non-Amicable Wind Down. Those circumstances are described below.

Previous4.3.2.1. Amicable Wind Down ProcessNext4.3.2.3. Minter Insolvency

Last updated 6 months ago