Textile FX

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Operator Vault ​

Listed vaults are on app.textilecredit.com/s/vaults. Factories that deploy them are in the address book.

The problem ​

Making markets on an FX corridor takes two things: a bot that prices well, and inventory to price with. They almost never sit in the same place.

An operator who knows the cNGN market can quote all day, but the book is their own balance sheet. Once it is full they stop, however good their pricing is. The people with dollars to put to work, treasuries, funds, family offices, are never going to run a hot wallet, a price feed and a server that has to stay up.

What it is ​

An on-chain vault that splits capital from control.

LPs deposit either asset of the pair, USDT or the corridor asset such as cNGN, and hold ERC-20 shares denominated in USDT terms. The operator points their Stitch bot at the vault and quotes the corridor with the vault's inventory. The spread the bot earns lands back in the vault, so it belongs to the LPs.

What the operator cannot do is move the money. There is no withdraw function for them to call. The only thing that ever leaves the vault is a swap the vault itself validated, and the only address allowed to receive the other side of that swap is the vault.

What the operator can sign ​

The vault is the swapper on every order, so nothing settles unless the vault approves the signature. It checks the whole order, not just who signed it:

  • The pair has to be the vault's own two assets, one in and one out.
  • There is exactly one output, and the recipient is the vault.
  • The size is under the per-side cap fixed at deploy, and under what the vault holds minus the reserve floor.
  • The order expires inside the maximum lifetime, and it carries the current trading epoch.
  • The order names the reactor and the validation contract the vault was built with.

Anything else fails. A quote paying out to the operator's own wallet fails the recipient check. A quote in a token the vault does not hold fails the pair check. A quote for more than the vault has fails the size check.

Fees ​

The operator is paid a management fee, expressed per year, accrued as shares while the vault is open for business, and capped in the contract at 25%. A guardian pause banks whatever has accrued and stops the clock; the paused span is never charged. An emergency exit forfeits the fee for the whole span since the last checkpoint — that is the span the operator failed to attest — so redeemers are not diluted for it. A vault can also carry a performance fee, capped at 50%, charged on the NAV computed from a signed valuation over the basket mark: the inventory the fee was last charged against, repriced at that valuation's own corridor price. NAV is derived from the signed floors and price, not attested as a separate field, so the fee uses the same numbers redeemers are paid from. An FX move on inventory the vault merely held isn't performance and isn't charged. A vault can also be deployed with an all-time-high floor, which holds the fee back until price per share is over its previous best; it's a per-vault switch, fixed at deploy, and off unless the deployer turns it on. Each vault fixes both rates at deploy and neither can ever go up. Textile takes a cut of each fee leg, also fixed per vault at deploy.

Trading P&L is not the operator's. Every fill pays back into the vault, so the spread is LP return. The taker fee a trader pays on a swap is separate and goes to the protocol, exactly as it does for any other maker. See Fees.

What it does not do ​

One vault covers one pair. A second corridor means a second vault.

There is no instant exit, only the next epoch. There is no live on-chain share price between epochs, because there is not an honest one.

Shares are a claim on a trading book, so LPs carry market risk. If the corridor asset moves against the vault while it holds inventory, the value falls, and a bad operator can lose money inside the rules. The vault stops theft. It does not stop bad trading.

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