Auction and Redemption Contracts

How the Genesis curve, the sealed batch auction and the creation and redemption flows work on-chain in every Cargo vault, with the Genesis Vault’s parameters.

Cargo vaults have no yield strategy contract. Capital is not deployed by code; it buys shares that are already backed by receipted goods. The on-chain logic that matters is how shares are sold and how they come back. The same contracts run every vault; each vault sets its own parameters, shown here for the Genesis Vault (cvCOCOA).

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Genesis Curve

A primary sale by the Vault SPV on a linear price curve from a start price P₀ to an end price P₁ over the cap C:

P(R) = P₀ + (P₁ − P₀) × R / C                    R = USDC raised so far
Shares for a ticket D = (1/b) × ln( P(R + D) / P(R) ),   b = (P₁ − P₀) / C

Genesis Vault Parameters: P₀ = 4.793, P₁ = 5.118, C = 1,500,000, so b = 0.325 / 1,500,000.

Each ticket pays the average price across its slice of the curve, so splitting a ticket gives exactly the same number of shares. Fills are ordered by time, the priority window first. Below the minimum ($500,000 in the Genesis Vault), all USDC is refunded.

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Batch Auction

Step	Rule
Seller	The Vault SPV only, against newly receipted lots
Bids	Sealed limit bids (price, quantity), minimum $5,000, editable until clearing
Clearing	At a fixed interval (every 12 days in the Genesis Vault) at 12:00 UTC; uniform price at the lowest winning bid; pro rata at the margin
Settlement	Atomic: USDC against shares
Fees	0.25% each side; panel market makers fee-free
Tape	Clearing price, discount to NAV, volume, bid-to-cover and lot IDs, emitted at clearing
Errors	Reversed only for system error, within one hour of clearing

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Creation and Redemption

Flow	Who	Price	Settlement
Creation	Authorised participants	NAV + 0.10%	In blocks (1,000 shares in the Genesis Vault), any business day, T+1 in USDC
Redemption	Any holder above the vault minimum (1,000 shares in the Genesis Vault)	NAV − 0.10%	Requested until 24 h before a batch; struck at the batch; paid within 12 days in the Genesis Vault

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Safeguards

Creations and redemptions pause when the NAV fallback triggers. Minting stops if the collateral-manager report is stale or a lot shows a discrepancy above 0.5%. Every contract that mints, auctions or holds value will be audited before mainnet; no audit has been completed yet.