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The Senior tranches have a structural first-loss buffer: JT capital absorbs all losses before ST is affected, up to the full coverage amount. However, this is not a guarantee of principal in the legal or insurance sense. If losses exceed the JT buffer, ST capital is exposed to the remainder. ST depositors may lose some or all of their capital. If a drawdown reaches the market’s Protected Exit Threshold, ST can withdraw immediately with the strategy base asset while JT may still have remaining capital.
The vault’s independent curator makes all investment decisions: which yield sources to allocate to, at what coverage levels, and how to size positions. The Foundation does not direct specific allocations. The depositor chooses which vault or tranche to enter.
If a base asset suffers an exploit, the Royco market built on it will experience a loss. JT capital absorbs the loss first, up to the coverage percentage. If the loss exceeds coverage, ST and LT are exposed to the remainder. Diversification across multiple sources means a single exploit does not necessarily affect the entire vault, only the portion allocated to that specific source.
Vault withdrawals are processed through 30-day epochs. Requests enter the current open epoch, which is processed when it closes. A secondary market for vaults may provide an alternative exit path for immediate liquidity. Seniors can request a withdrawal at any time, settling after a queue of about a day. (During an observation period, withdrawals are locked until the term ends.) JT withdrawals are available when excess JT capital exists above the coverage requirement.
Royco has been deployed on Ethereum, Avalanche, Arbitrum, and Base. The srRoyUSDC vault operates across multiple chains, moving capital via Circle’s CCTP to access the best available yield opportunities. The ETH-based vaults operate on Ethereum.
The curator is bound by a contractual standard of care and defined performance expectations. The Foundation can terminate the curator relationship for material breach, sustained underperformance attributable to curator decisions, failure to maintain risk controls, or unauthorized actions. On termination, the curator must cooperate in an orderly transition to a successor.
There is no fixed lock-up for Senior deposits at the tranche level. Vault withdrawals from srRoyUSDC and roywstETH are processed through 30-day withdrawal epochs. Depositors should plan for up to 30 days between submitting a withdrawal request and being able to claim funds. Institutional depositors may face additional processing steps in the updated withdrawal flow. In markets with SLP enabled, SLP can be used as an alternative exit for immediate liquidity, but availability is not guaranteed. Junior capital may be restricted from withdrawing when it is actively backing Senior exposure at the minimum coverage level.
All protocol state: coverage ratios, yield rates, vault composition, fee accrual, and transaction history, is recorded on public blockchains and can be independently verified using any blockchain explorer. The protocol’s smart contracts are published and can be reviewed by any party.
Royco raised a Series A in 2025 led by Electric Capital. Ecosystem partners have also raised from Coinbase Ventures, Hashed, Amber Group, and DCF God.
This document is provided for informational purposes only and does not constitute investment advice, a solicitation, or an offer to sell any securities or financial instruments. Participation in Royco products involves risk, including the potential loss of all capital deployed. Prospective participants should conduct their own independent due diligence and consult with qualified legal, financial, and tax advisors before making any investment decisions.