How ILN-FR Works

Cycle structure overview

An ILN-FR cycle consists of three distinct phases:

• Allocation and commitment of liquidity

• An active 30-day lock-up period

• Rollover preparation and execution

Liquidity providers participate on a cycle-by-cycle basis. Renewal into the next cycle is automatic unless a withdrawal request is submitted within the defined request window during the active cycle.

ILN-FR operates in fixed 30-day cycles, with liquidity committed for the full duration and renewed automatically unless a withdrawal is requested.

Cycle Enforcement and Interface Execution

ILN-FR operates under a rule-based cycle structure enforced through the BuffX interface.

All key actions, including deposits, withdrawal requests, rollover execution, and renewal, are performed within predefined time windows and follow deterministic rules documented for the product.

The BuffX interface executes these rules automatically and without discretion during normal operation, based on the predefined ILN-FR cycle rules.. Once a cycle begins, liquidity remains committed for the full duration of that cycle and cannot be withdrawn mid-cycle.

Requests submitted during the applicable windows are processed according to the ILN-FR cycle schedule. In the absence of a valid withdrawal request, liquidity and accrued returns are automatically re-engaged into the next cycle under the terms then in force.

Step 1: Allocation and deposit phase

During the first twenty-eight (28) days of an active ILN-FR cycle, participants may submit deposit requests for the next cycle through the BuffX interface.

These deposits are queued only: they are not deployed, not committed, and do not generate returns during the active cycle.

Deposit requests close in the final two (2) days, when queued deposits are finalized for inclusion at the start of the next cycle.

Step 2: Cycle start and liquidity lock-up

At the start of an ILN-FR cycle, only liquidity finalized during the previous rollover becomes active and is committed for the full thirty (30) day period.

Once the cycle has started:

• active liquidity cannot be withdrawn mid-cycle,

• the liquidity base remains fixed for the duration of the cycle,

• queued deposits submitted during the cycle do not affect the active cycle.

Step 3: Withdrawal request window

During the first twenty-eight (28) days of an active ILN-FR cycle, participants may submit a withdrawal request for the next cycle through the BuffX interface.

Withdrawal requests do not interrupt or modify the active cycle. Liquidity remains fully committed until the end of the cycle in which it is active.

Withdrawal requests can be submitted during the first 28 days of the cycle and apply to the upcoming rollover, not the active cycle.

Step 4: Vault activity checks and rollover preparation

During the final 2 days of the cycle, ILN-FR enters a rollover preparation phase.

During this phase:

• New applications are closed

• Vault activity for the cycle is checked and finalized

• Withdrawal requests are validated

• Deposit and withdrawal amounts for the rollover are confirmed

This step is limited to vault-level accounting and validation. It does not involve underlying real-world transaction processing.

During the rollover preparation phase, no changes are made to the liquidity deployed in the active cycle, which continues to operate unchanged until cycle end.

Step 5: Rollover and next cycle

At the end of the cycle:

• Requested withdrawals are processed

• Deposits for the next cycle are transferred

• The next 30-day cycle begins under its defined terms

Each ILN-FR cycle operates independently, with returns and renewal determined on a per-cycle basis. All operational timing, request validation, and rollover execution for ILN-FR are governed by product-specific rules and contractual terms and do not rely on discretionary decision-making.