Emergency Controls
Ledgity is designed to provide stable, predictable yield while ensuring user protection across all market conditions. To achieve this, the protocol includes on-chain safety mechanisms that allow the system to react quickly and transparently to abnormal events.
Even though approximately 80% of the capital is allocated off-chain to generate real yield, user balances, liquidity buffers, governance, and access rights remain fully on-chain and cannot be altered without transparent, on-chain actions.
Control Layer Breakdown
GlobalPause
Temporarily pausing deposits & new withdrawals during abnormal conditions
Multisig governance (Council + veLDY oversight)
GlobalBlacklist
Restricting sanctioned or malicious addresses
Multisig governance (case-by-case only)
Withdrawal Queue
Ensuring liquidity alignment between on-chain and off-chain assets
Smart contract logic (automatic, rule-based)
These mechanisms do not give custody to the protocol operators. They only control transaction flow to protect user funds when needed.
GlobalPause — Protocol Circuit Breaker
GlobalPause allows the protocol to temporarily pause operations if a security or infrastructure risk is detected.
Typical activation scenarios:
Bridge or infrastructure exploit detected upstream
Custodian or SPV operational alert
Smart contract vulnerability flagged
Irregular on-chain behavior detected
Effects during pause:
Deposits & new withdrawal requests are paused
Existing withdrawal claims remain redeemable
User balances remain fully intact and auditable
This mechanism is transparent, reversible, and limited in scope.
Funds are never frozen or seized.
GlobalBlacklist — Targeted Address Restriction
GlobalBlacklist allows the protocol to block only specific wallets in case of:
Confirmed malicious activity
Legal sanction lists
Fund flows linked to exploitation or theft
This is not a censorship tool. It is used only in objective, provable risk or compliance cases.
It protects the protocol without impacting legitimate users.
Withdrawal Safety & Liquidity Management
Ledgity maintains a hybrid liquidity model, balancing instant on-chain liquidity with scheduled off-chain repayment cycles.
Within the Liquidity Buffer
On-chain buffer
Instant
Standard withdrawal (< ~10% TVL)
Next short-duration repayment cycle
Typically < 72h
Large withdrawal (> ~20% TVL)
Coordinated redemption from RWA portfolio
1–4 weeks, with direct communication
This ensures:
No forced liquidation of off-chain assets
No redemption gate
No “withdrawals suspended until further notice”
Predictable exit timelines even during stress
The queue is automatic, not discretionary.
Why the System Is More Resilient
Although yield comes from off-chain economic activity, the protocol maintains:
User balances & vault accounting
✅ Yes
Transparent & verifiable
Liquidity buffer
✅ Yes
Supports instant exits
Governance rules & permissions
✅ Yes
Community-supervised
Off-chain collateral
❗ Via Custodian + SPV
Secured, segregated from Ledgity corporate assets
The SPV structure ensures assets are bankruptcy-remote → User capital is legally separated from Ledgity’s operating entity.
In Summary
Safety without custody
Users always remain the final owner of their funds
On-chain control + off-chain yield
Stability without sacrificing transparency
Rule-based withdrawals
No panic, no freeze, no arbitrary gating
Governance oversight + multi-sig
No single party can act alone
Ledgity is built to remain stable and redeemable — even in stressed conditions — by combining on-chain transparency with institutional-grade asset protection.
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