# Escrow ### 1. Mandate The Sagitta Escrow is the **execution and settlement authority** of the Sagitta Protocol. Its mandate is to deploy capital into approved allocation strategies, custody assets during execution, and return results to the Treasury for settlement. Escrow exists to separate **capital movement** from **capital decision-making**, ensuring that execution risk, counterparty exposure, and operational complexity remain isolated from depositor-facing systems. Escrow moves capital.\ It does not define policy, evaluate strategy, or determine risk posture. *** ### 2. Position Within the Sagitta Protocol The Sagitta Escrow operates as a **downstream execution layer** within the protocol. * The **Sagitta Vault** records depositor balances and ownership * The **Sagitta Treasury** forms liquidity, defines allocation batches, and settles outcomes * The **Sagitta Reserve** insures deposits and absorbs systemic losses * The **Autonomous Allocation Agent** evaluates strategies and risk * The **Sagitta Escrow** executes allocation and holds capital in motion * The **Sagitta Continuity Engine** governs failure response Escrow exists at the boundary between protocol intent and external markets. *** ### 3. Capital Isolation Doctrine The Sagitta Escrow enforces **capital isolation**. Each allocation batch is routed into a dedicated Escrow context that: * segregates assets by batch * isolates execution exposure * prevents cross-contamination between strategies * preserves deterministic settlement Isolation ensures that failure or underperformance in one execution path does not propagate across the system. *** ### 4. Scope of Execution Escrow executes allocation across **on-chain and off-chain venues**, including: * on-chain staking protocols * decentralized liquidity venues * centralized or regulated custodians * managed portfolios and counterparties Execution paths are authorized by the Treasury and informed by the Autonomous Allocation Agent. Escrow adapts execution mechanics to venue-specific requirements while preserving batch integrity. *** ### 5. Custody and Asset Handling During execution, the Sagitta Escrow functions as a **temporary custodian** of deployed capital. Custody responsibilities include: * holding Stability Units and acquired assets * managing execution-specific keys and permissions * enforcing asset segregation and accounting * preparing assets for settlement return Custody authority is limited to the duration and scope of execution. *** ### 6. Compliance Boundary The Sagitta Escrow serves as the protocol’s **compliance and jurisdictional boundary**. Escrow enables: * interaction with regulated counterparties * adherence to jurisdiction-specific requirements * execution through compliant custodial frameworks This separation allows the protocol to integrate with institutional venues without imposing compliance logic on Vault, Treasury, or Reserve systems. *** ### 7. Settlement and Reporting At the conclusion of each allocation batch, Escrow: * reconciles all executed positions * converts outcomes into Stability Units * prepares settlement reports * returns assets to the Treasury Settlement outputs are deterministic and batch-scoped, enabling transparent reconciliation and auditability. *** ### 8. Interaction With the Treasury The Sagitta Escrow operates under **Treasury authorization**. The Treasury defines: * batch size * approved strategies * capital routing instructions * settlement expectations Escrow executes within these parameters and returns results without modifying allocation intent. *** ### 9. Interaction With the Reserve The Sagitta Escrow does not access Reserve assets directly. In loss or failure scenarios: * Escrow reports execution outcomes * Treasury evaluates settlement * Reserve absorbs losses according to insurance doctrine This separation preserves Reserve independence and integrity. *** ### 10. Failure Containment Escrow failures are **contained by design**. Failure modes may include: * execution venue failure * counterparty default * operational disruption Capital isolation and batch scoping ensure that such failures affect only the active execution context. Recovery paths are coordinated by the Continuity Engine. *** ### 11. Continuity Integration The Sagitta Continuity Engine monitors Escrow health and execution integrity. Under continuity events, Escrow may: * halt execution * freeze capital movement * return assets prematurely * shift execution paths These actions preserve depositor protection and system solvency. *** ### 12. Standalone Deployment The Sagitta Escrow is deployable as a standalone execution and custody layer. It may operate as: * a capital execution service for protocols * a batch-based custody system * a compliant bridge between decentralized treasuries and institutional venues * an execution abstraction for fiduciary capital Standalone operation preserves separation between decision intelligence and capital movement. *** ### 13. Summary The Sagitta Escrow is the **execution spine** of the protocol. It: * isolates capital during execution * adapts to diverse venues and jurisdictions * preserves batch integrity * contains operational risk * returns outcomes for deterministic settlement Sagitta separates intelligence from movement, policy from execution, and protection from exposure. The Escrow ensures that **capital moves deliberately, transparently, and safely**.