> ## Documentation Index
> Fetch the complete documentation index at: https://docs.askloyal.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Earn Trust Model

> A dense view of where Earn yield comes from, what Loyal can execute, and what risks remain.

Earn is policy-bounded automation for Kamino lending. It is not a fixed-rate account, a managed custody vault, or a promise that DeFi risk disappears.

## One-Screen Summary

| Question                     | Direct answer                                                                                                                        |
| ---------------------------- | ------------------------------------------------------------------------------------------------------------------------------------ |
| Where does yield come from?  | Kamino lending markets. Lenders earn from borrower demand, reserve utilization, and any market incentives included in the live rate. |
| Is the APY fixed?            | No. It is a variable market rate that can move up or down.                                                                           |
| What does Loyal optimize?    | Approved Kamino stablecoin routes that pass the active smart-account policy and execution checks.                                    |
| Who holds the funds?         | Your Loyal Smart Account. Earn funds sit in the Earn vault inside that account.                                                      |
| What can Loyal execute?      | Policy-approved Earn actions through the delegated policy signer.                                                                    |
| What still requires you?     | Setup, manual deposits, manual withdrawals, policy revocation, and cleanup flows require your wallet approval.                       |
| What risks remain?           | Kamino protocol and market risk, Squads smart-account risk, Solana network risk, and liquidity or withdrawal timing risk.            |
| What is the main protection? | A Squads smart-account policy limits what automation can submit.                                                                     |
| What is not protected?       | The policy does not insure deposits, guarantee APY, or reverse losses in an underlying market.                                       |

## Money Path

```text theme={null}
User wallet
  -> Loyal Smart Account settings
  -> Earn vault
  -> approved smart-account policy
  -> approved Kamino lending route
```

| Layer                  | What it does                                                            | What to remember                                                |
| ---------------------- | ----------------------------------------------------------------------- | --------------------------------------------------------------- |
| User wallet            | Approves setup and each deposit or withdrawal; also approves revocation | Loyal cannot sign as your wallet.                               |
| Smart Account settings | Stores the root account configuration                                   | This stores settings; the Earn balance lives in the Earn vault. |
| Earn vault             | Holds Earn funds and executes approved actions                          | This is the account Earn routes from.                           |
| Earn policy            | Constrains the delegated signer                                         | Invalid instructions should fail on-chain.                      |
| Kamino route           | Supplies or withdraws from approved lending markets                     | This is where yield and lending risk come from.                 |

Live Earn holdings are checked from Solana RPC and Kamino account state. Loyal databases store coordination state, confirmed history, and snapshots; they are not the authority for the current balance.

## Rate Source

Kamino reserves pay lenders from borrower interest. A reserve's APY changes as supply, borrowing demand, utilization, market incentives, and available liquidity change.

| Topic          | Earn behavior                                                                                                     |
| -------------- | ----------------------------------------------------------------------------------------------------------------- |
| Rate source    | Kamino reserve market data and on-chain market state.                                                             |
| Displayed rate | A current or forecasted market-rate view with no contractual yield.                                               |
| Route choice   | Loyal compares approved routes and can skip when the edge is not worth acting on.                                 |
| Freshness      | Stale or missing market data should cause the system to wait rather than force a move.                            |
| Verification   | Users should be able to compare the displayed rate with the underlying Kamino market or reserve shown in the app. |
| Accounting     | Confirmed Earn history is written after chain confirmation; live holdings come from chain state.                  |

Base lending yield is borrower-funded: borrowers pay interest, utilization determines the borrow rate from the reserve curve, Kamino's reserve factor or protocol spread reduces the pass-through, and suppliers receive the remaining yield through reserve accounting. Incentives or rewards can add to displayed returns only when that market exposes them separately.

## Safe Bracket Kamino Markets

The Safe bracket is Loyal's mainnet market allowlist for conservative Earn routing. Kamino does not publish it as a risk tier; Loyal uses it as a routing allowlist. Each market still has its own liquidity, reserve parameters, issuer exposure, and withdrawal risk.

For every market below, the displayed APR/APY is still the Kamino supplier rate for the selected reserve. The notes explain what each market's lending or yield exposure is built around.

Kamino's own docs cover the rate mechanics in more detail: [supplying](https://kamino.com/docs/products/borrow/supplying), [interest rates](https://kamino.com/docs/risk/safeguards/interest-rates), and the [market API](https://api.kamino.finance/v2/kamino-market).

### Main Kamino

Address: `7u3HeHxYDLhnCoErrtycNokbQYbWGzLs6JSDqGAv5PfF`

Yield comes from borrower interest in Kamino's core lending market, across stablecoins and major Solana assets.

### Figure / Prime

Address: `CqAoLuqWtavaVE8deBjMKe8ZfSt9ghR6Vb8nfsyabyHA`

Yield comes from Prime/Figure lending exposure backed by home equity lines of credit, based on Figure's Democratized Prime materials.

### Maple

Address: `6WEGfej9B9wjxRs6t4BYpb9iCXd8CpTpJ8fVSNzHCC5y`

Yield comes from institutional lending and related strategies behind syrupUSDC within the Maple market.

### OnRe

Address: `47tfyEG9SsdEnUm9cw5kY9BXngQGqu3LBoop9j5uTAv8`

Yield comes from reinsurance premiums plus collateral returns within the OnRe market.

### Ethena

Address: `BJnbcRHqvppTyGesLzWASGKnmnF1wq9jZu6ExrjT7wvF`

Yield comes from USDe and stablecoin exposure within the Ethena market, backed by crypto assets, hedge positions, and liquid stable assets.

## Execution Boundary

| Loyal can                                                       | Loyal cannot                                                     |
| --------------------------------------------------------------- | ---------------------------------------------------------------- |
| Prepare Earn setup plus deposit/withdrawal/cleanup transactions | Sign as your wallet                                              |
| Use a delegated policy signer for approved Earn actions         | Become a root settings signer unless you explicitly approve that |
| Execute actions that match the active Earn policy               | Transfer arbitrary tokens from your wallet                       |
| Route through approved Kamino lending paths                     | Bypass Squads policy checks                                      |
| Pause, skip, or disable automation paths                        | Guarantee future APY                                             |
| Record confirmed Earn history after chain confirmation          | Insure deposits or reverse an underlying protocol loss           |

The important distinction is narrow: Loyal-side custody risk is reduced by the policy boundary. Underlying DeFi risk is still real.

## Risk Matrix

| Risk                            | Example                                                          | Primary owner                       | Loyal mitigation                                                               | Residual risk                                        |
| ------------------------------- | ---------------------------------------------------------------- | ----------------------------------- | ------------------------------------------------------------------------------ | ---------------------------------------------------- |
| Kamino protocol or market risk  | Exploit, bad debt, reserve accounting issue, extreme utilization | Kamino and the lending market       | Approved route set; simulate routes and disable unsafe routes when needed      | Principal or withdrawal timing can still be affected |
| Squads smart-account risk       | Policy or smart-account program bug                              | Squads program and integration code | Use established smart-account primitives and keep Earn authority policy-scoped | Smart-account execution risk remains                 |
| Solana network risk             | Congestion, outage, delayed confirmation                         | Solana network                      | Retry after congestion; wait for confirmation before marking actions final     | Deposits, rebalances, or withdrawals can be delayed  |
| Liquidity and withdrawal timing | Reserve liquidity is mostly borrowed                             | Kamino market conditions            | Check route state and prepare withdrawals through available paths              | Exits can be slower than expected                    |

## User Controls

| Control                     | What it does                                                                                   |
| --------------------------- | ---------------------------------------------------------------------------------------------- |
| Withdraw                    | Moves funds out of Earn through the prepared withdrawal path, subject to market state.         |
| Pause Autodeposit           | Stops new surplus sweeps from being executed.                                                  |
| Close Autodeposit           | Revokes the recurring delegation and closes the Autodeposit policy.                            |
| Close or revoke Earn policy | Removes the delegated automation authority after the required signed cleanup flow.             |
| Review transaction details  | Shows the route, market, reserve, mint, policy account, and setup requirements before signing. |

The safest wording is: Earn is constrained automation on top of DeFi lending. The constraint is real, but it is not a guarantee of yield, liquidity, or protocol safety.