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Nexio ensures that every BTC movement, covenant change, and contractual update is verifiable directly on-chain. Instead of relying on PDF statements or delayed reporting, lenders, auditors, and counterparties can observe real-time data sourced from the same contracts that govern vault operations. This gives all stakeholders continuous visibility into Series health, utilization, and compliance status, without exposing private borrower details.

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Key Components

To achieve this level of transparency, Nexio integrates several layers of verifiable record-keeping:
  • Public Audit Metrics: Dashboards and APIs publish live Series data such as utilization, collateral ratios, covenant timers, and liquidity reserves. All metrics are generated from on-chain events, removing reliance on manual or off-chain reporting.
  • Event-Based Ledger: Every mint, burn, coupon payment, and repayment emits a unique event hash. These immutable records allow any third party (auditor, custodian, or regulator) to reconstruct complete Series histories without needing internal system access.
  • Legal Document Hashing: Hashes of the Master Loan Agreement, Pledge Agreement, and Series Term Sheet are embedded directly in contract metadata. This creates a provable link between on-chain activity and its governing legal framework.
  • Continuous Verification: Auditors or custodians can use Nexio’s read-only APIs to verify that balances, uBTC/yBTC supplies, and vault states match the underlying Bitcoin custody — ensuring full reconciliation between legal and technical layers.
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Example: Auditing Nexio Transactions

Imagine a 90-day Series holding 200 BTC in its vault. Midway through the term, an auditor from a participating custodian wants to confirm that all redemptions and repayments align with policy. They query the Series’ on-chain event log via Nexio’s public API. The log shows that 12.4 uBTC were burned on-chain before each redemption, followed immediately by the corresponding Bitcoin payout. Both events are cryptographically linked to the same proposal ID, proving the system’s burn-before-release rule was enforced. Second, the auditor cross-checks the hash of the governing Series Term Sheet stored in contract metadata. By matching it to the hash of the signed PDF in the custody records, they confirm that no terms or covenants have been altered since Series creation. Finally, they validate that the total BTC balance reported by the Taproot vault equals the corresponding uBTC supply. Within minutes, the auditor verifies custody, contractual integrity, and event-level compliance—without accessing any borrower’s private data.