Asset and value flow
Follow the assets through a fixed Lot and its launch markets. Each arrow is a transfer or contract action; intermediary assets do not also remain in the trader's wallet.
From components to a Lot token
Component X ─┐
Component Y ─┼── deposit complete recipe ──► Lot vault ──► mint Lot tokens
Component Z ─┘
The Lot vault holds the component tokens. The participant receives Lot tokens redeemable for the fixed component quantities. Composing the recipe comes before this flow and does not itself move assets.
From a Lot to a launch market
Launch-token supply → locked liquidity ranges → launch-token/Lot pool
↑
buyers supply Lot tokens
The pool begins with launch-token inventory; buyers introduce the quote. Rounding residue goes to the burn address. The starting valuation is a price reference, not deposited cash or Lots. See launch liquidity.
Buying
A holder can exchange Lots directly for launch tokens. Routed purchases first acquire the quote:
payment → acquire components → mint Lot → buy launch token
The intermediate Lot enters the pool; the wallet receives only the launch token.
Selling
launch token → Lot token → optional redemption and component sale → ETH or USDG
Selling to the Lot stops after the first swap. A longer exit requires every leg to execute within signed limits; reference values do not guarantee proceeds.
Rotation
launch token A ──► shared Lot ──► launch token B
Rotation performs two launch-pool swaps atomically. No component is redeemed or traded during the route. Both pools retain separate pricing and liquidity.
Redemption
Lot tokens ── burn ──► Lot vault ── release ──► X + Y + Z
Healthy redemption returns the fixed component recipe. It does not sell components for cash, deliver brokerage shares or provide a launch-token redemption shortcut.
Where fees move
Buy fees enter in the paired Lot token; sell fees enter in the launch token. Each asset is split separately between project and protocol. Collections and claims preserve those currencies.
Fees explains rates and allocations; network rewards follows protocol Lot-token receipts. Neither uses vault backing or locked principal.
Asset roles and custody
| Object | Held where | Core relationship |
|---|---|---|
| Component token | Wallet or Lot vault | Issuer-defined token rights |
| Lot token | Wallet or launch pool | Redeemable against the Lot vault recipe |
| Launch token | Wallet or launch pool | Tradable through available launch liquidity |
| Pool position | Liquidity locker | Market-making principal, not a user redemption reserve |
| $LOTS | Protocol-token holding | Holder-reward allocation and protocol burn target; not a Lot vault receipt |
| Reward reserve | Protocol Lot-token fee receipts | Dedicated to $LOTS holder distribution |
These boundaries apply even when the interface presents a multi-step route as one action.