Mechanism

LCC replaces capital call legal enforcement with margin and an auction. A staker's margin backs a levered promise that 3Jane can call when credit demand appears; funded calls convert into USD3, and missed calls are backstopped by an auction that pays bidders out of the slashed margin to fill them. Each facility is a standalone contract with its own terms.

A staker's margin backs a callable promise. Called capital routes through USD3 to fintech lender facilities. Missed calls are backstopped by a Dutch auction on the slashed margin.

Actors

Actor	Role	What they get
Staker	Stakes margin, funds their own capital calls, unstakes	≈ 20.2% APY on posted margin at launch terms, plus the funding bonus on called capital
3Jane	Creates facilities, opens capital calls, manages risk parameters	Funding certainty with ~13x balance sheet capital efficiency, no capital taken upfront
Backstop bidder	Fills missed calls in the shortfall auction	Margin awards plus USD3 yield, a premium for delivering execution certainty

Stakers

A staker posts margin, the facility's stable margin asset, into the facility. The margin is a performance bond, and the facility levers it into a callable promise, 13.33x at launch: the amount of USDC 3Jane may call. The uncalled capital never leaves the staker's custody, and the promise earns fees for as long as it is active.

When there is eligible deployment, a new facility execution, an approved upsize, or a bridge to available deposits, 3Jane opens one call per epoch against the pool of active promises, apportioned pro rata. Each called staker delivers their share in USDC within the funding window and receives USD3 with a 35-day cooldown, keeping the exposure they just funded, while a proportional slice of margin releases back to them.

See Stakers for margin, promise sizing, yield, funding mechanics, and unstaking.

Backstop bidders

If a staker misses their call, their entire margin is slashed into an auction pool and offered to backstop bidders on a rising schedule: the longer the shortfall sits unfilled, the more margin is on offer. A bidder funds the shortfall in USDC, exactly as the staker would have, and takes the USD3, still in cooldown, plus the offered margin. On a filled shortfall, whatever the auction does not award returns to the slashed staker, minus the auction fee, so the cost of a backstopped miss is the auction's clearing discount rather than the whole bond; the unfilled share of a shortfall is forfeited to the treasury. Because the auction only ever clears the defaulted slice of a call, the backstop's required capacity scales with expected defaults, not with the gross call.

See Backstop Bidders for auction pricing, clearing dynamics, and bidder returns, and Call Outcomes for how a call is apportioned across a cohort and how each obligation resolves.

The epoch clock

Every facility runs on a fixed epoch. Stakes activate, calls open, funding settles, and any slash and auction resolve on a schedule that is a pure function of time. See Epoch Clock for phases, launch durations, and facility end states.