> For the complete documentation index, see [llms.txt](https://whitepaper.zodor.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://whitepaper.zodor.io/system-architecture/capital-inflow-and-outflow.md).

# Capital Inflow and Outflow

<figure><img src="/files/PCvHVNQ9zPOsJyMJBgyp" alt=""><figcaption></figcaption></figure>

#### Overview <a href="#overview-2" id="overview-2"></a>

The Zodor protocol manages capital flows through a structured system where investor funds in USDT, USDC are converted into Security Tokens through `StablecoinPurchaseRouter` and asset-specific token contracts, granting fractional ownership in real-world assets. Yield flows back through ERC-4626 vaults.

#### Capital Inflow <a href="#capital-inflow" id="capital-inflow"></a>

* Investors deposit USDT, USDC
* `StablecoinPurchaseRouter` validates compliance and routes the funds through the correct asset token
* Tokens represent fractional ownership in legally structured real-world assets, anchored by IPFS-stored documentation in `ZodorProofRegistry`

#### Income Generation & Outflow <a href="#income-generation--outflow" id="income-generation--outflow"></a>

* Real-world assets generate rental, dividend, or coupon income (Capital, Infra) or carbon-revenue / energy-revenue payments (Energy)
* Operators deposit yield into the asset's `ZodorSecurityVault`
* `processDividendPayouts` cron computes per-investor allocations from the vault's NAV and ERC-4626 share accounting
* Returns are distributed back to investors in a programmatic and compliant manner  non-transferable shares prevent gaming the dividend snapshot

#### Outflow Paths <a href="#outflow-paths" id="outflow-paths"></a>

| Path               | Mechanism                                                         | Notes                                            |
| ------------------ | ----------------------------------------------------------------- | ------------------------------------------------ |
| Sell on AMM        | `ZodorPermissionedPool`                                           | KYC-gated LPs, 0.3% fee, holding-period enforced |
| Bridge cross-chain | `ZodorCCIPBridge` (lock/release) or `ZodorOFTAdapter` (burn/mint) | Compliance follows the token across chains       |
| Redeem from vault  | `ZodorSecurityVault` (ERC-4626)                                   | Subject to redemption windows per asset          |
| Direct withdrawal  | Backend `withdrawalFunction` Lambda                               | Reconciled by `updateWithdrawRequest` cron       |

#### Governance <a href="#governance" id="governance"></a>

The entire capital and returns flow operates on-chain, providing transparency, regulatory compliance, and operational efficiency. Off-chain reconciliation crons (`reconcilePurchases`, `processDividendPayouts`, `updateWithdrawRequest`, `reconcileKyc`, `reconcileIdentityOnboard`) keep the off-chain state machine and on-chain truth in sync.