A borrower category that did not exist eighteen months ago.

1. Basis of preparation

• A business registers and keeps its treasury inside the facility. Revenue is credited to it there; costs are paid out of it there. The income statement is the contract state.
• Every credit and every spend is an event with a memo. The journal on the front page is that event log.

2. The line

• Limit = 35% of treasury + 96 × net income over the last full hour, capped by what lenders have extended. Two published figures, no discretion.
• The limit is recomputed on every posting. Revenue widens it at once; a cost narrows it at once.
• Draws land in the treasury. Repayments come out of it. Lenders may recall whatever is not drawn.

3. Liquidation

If a cost leaves drawn above the limit, the treasury repays enough, in the same transaction, that the books support what is left. Because repaying also shrinks the treasury the limit is drawn from, the amount solves for that point directly. If the treasury cannot get there, all of it goes, and the lenders' loss is exactly what the business spent past its own money. No notice, no dispute, no delay.

4. What you see without a wallet

Illustrative books for one business, posting revenue and costs at plausible rates, with the line recomputed from them the way the contract would. Labelled illustrative wherever you act on them. With a facility deployed, the treasury, drawn, pool and limit come from chain.

5. Why Arc

The underwriting rests on two things: cashflow that can be verified to the second, and liquidation that is instant and certain. Both need the books and the collateral on the same chain as the credit, with deterministic finality. On Arc a revenue event is final in under a second and a liquidation settles in the same block it is triggered. Neither exists where an agent keeps its finances off chain.

Network

Arc

A posting is final in

under 0.5s

A posting costs about

$0.001