Status: Draft Last Updated: 2026-01-27
Executive Summary
A Structuring Halo is a Halo type that uses NFATS (Non-Fungible Allocation Token Standard) to create bespoke, individual capital deployment deals. Unlike Passthrough Halos (which use LCTS for pooled, fungible positions), Structuring Halos treat each deal as a distinct, non-fungible position with its own terms.
Structuring Halos are operated by lpha-nfat beacons (LPHA — Low Power, High Authority) that:
- Claim capital from Prime queues when deals are struck
- Mint NFATs representing claims on individual Halo Units
- Deploy funds via the PAU to RWA endpoints
- Process redemptions when funds return to the PAU
Note: lpha-nfat is an LPHA beacon — a deterministic rule executor, not a sentinel. Sentinels (stl-base, stl-stream, stl-warden) have continuous real-time control and proprietary intelligence. LPHA beacons like lpha-nfat apply rules exactly as written without judgment. See
beacon-framework.mdfor the full taxonomy.
Key value proposition: Enable bespoke structured deals at scale — each NFAT can have different duration, size, and terms, while sharing the same legal buybox and smart contract infrastructure.
Structuring vs Passthrough Halos
| Aspect | Passthrough Halo | Structuring Halo |
|---|---|---|
| Token Standard | LCTS (pooled, fungible) | NFATS (individual, non-fungible) |
| Terms | Same for all participants | Bespoke per deal |
| LPHA Beacon | lpha-lcts | lpha-nfat |
| Use Case | Standardized asset manager products | Custom structured deals |
| Position Type | Shares in a pool | Claim on specific deployment |
| Transferability | Queue-based, generation-locked | NFT — transferable, collateralizable |
When to Use Structuring Halos
- Asset manager partnerships with negotiated terms
- Deals where each depositor has different yield, duration, or conditions
- Situations requiring transferable positions (secondary market, collateralization)
- Regulated contexts where counterparty identity matters
- Complex structured products with varying tranches
When to Use Passthrough Halos
- Open participation with uniform terms
- Capacity-constrained strategies where fair distribution matters
- Scenarios where fungibility and pooling are desirable
Halo Class Structure
A Structuring Halo is organized into Halo Classes — each Halo Class is an NFAT Facility that defines a buybox of acceptable deal parameters.
┌─────────────────────────────────────────────────────────────────────────┐
│ STRUCTURING HALO │
│ │
│ ┌─────────────────────────────────────────────────────────────────┐ │
│ │ HALO CLASS: Senior Secured Facility │ │
│ │ (Shared PAU + lpha-nfat + Legal Buybox) │ │
│ │ │ │
│ │ Buybox Parameters: │ │
│ │ - Duration: 6-24 months │ │
│ │ - Size: 5M-100M per NFAT │ │
│ │ - APY: 8-15% │ │
│ │ - Counterparties: Approved Primes only │ │
│ │ │ │
│ │ ┌──────────┐ ┌──────────┐ ┌──────────┐ ┌──────────┐ │ │
│ │ │ NFAT #1 │ │ NFAT #2 │ │ NFAT #3 │ │ NFAT #4 │ │ │
│ │ │ 6mo,25M │ │ 12mo,50M │ │ 18mo,30M │ │ 9mo,15M │ │ │
│ │ │ Spark │ │ Grove │ │ Spark │ │ Keel │ │ │
│ │ └──────────┘ └──────────┘ └──────────┘ └──────────┘ │ │
│ │ │ │
│ └─────────────────────────────────────────────────────────────────┘ │
│ │
│ ┌─────────────────────────────────────────────────────────────────┐ │
│ │ HALO CLASS: Mezzanine Facility │ │
│ │ (Different buybox, same pattern) │ │
│ └─────────────────────────────────────────────────────────────────┘ │
│ │
└─────────────────────────────────────────────────────────────────────────┘
What a Halo Class (NFAT Facility) Shares
| Component | Description |
|---|---|
| PAU | Controller + ALMProxy + RateLimits for all NFATs in the facility |
| Sentinel | lpha-nfat formation manages issuance, deployment, and redemption |
| Legal Buybox | Acceptable parameter ranges, counterparty requirements, recourse |
| Queue Contract | Where Primes deposit capital awaiting deal execution |
| Redeem Contract | Where Halo deposits funds for NFAT holders to claim |
What Individual NFATs (Halo Units) Can Vary
| Parameter | Variation Within Buybox |
|---|---|
| Duration | Different maturities (e.g., 6mo vs 18mo) |
| Size | Different notional amounts |
| APY | Different yields within acceptable range |
| Counterparty | Different Primes for each NFAT |
| Specific Terms | Payment schedules, early redemption conditions |
The lpha-nfat LPHA Beacon
The lpha-nfat beacon is the operational backbone of a Structuring Halo. It operates the NFAT Facility's PAU and manages the complete lifecycle of each NFAT.
Beacon Responsibilities
┌─────────────────────────────────────────────────────────────────────────┐
│ lpha-nfat SENTINEL │
│ │
│ ┌─────────────────┐ ┌─────────────────┐ ┌─────────────────┐ │
│ │ 1. ISSUANCE │ │ 2. DEPLOYMENT │ │ 3. REDEMPTION │ │
│ │ │ │ │ │ │ │
│ │ • Monitor │ │ • Transfer │ │ • Receive │ │
│ │ Prime queues │ │ funds via │ │ returned │ │
│ │ • Validate │────▶│ PAU to RWA │────▶│ funds │ │
│ │ deal terms │ │ endpoint │ │ • Move to │ │
│ │ • Mint NFAT │ │ • Update │ │ Redeem │ │
│ │ • Claim from │ │ Synome │ │ Contract │ │
│ │ queue │ │ position │ │ • Notify │ │
│ │ │ │ data │ │ NFAT holder │ │
│ └─────────────────┘ └─────────────────┘ └─────────────────┘ │
│ │
└─────────────────────────────────────────────────────────────────────────┘
Phase 1: NFAT Issuance
When a deal is struck between a Prime and the Halo:
- Prime deposits sUSDS into the Facility's Queue Contract
- lpha-nfat validates that deal terms fall within the buybox
- lpha-nfat claims the capital from the queue
- lpha-nfat mints an NFAT representing the Prime's claim
- Deal terms recorded in Synome (APY, maturity, payment schedule)
Prime Queue Contract lpha-nfat
│ │ │
│ 1. Deposit sUSDS │ │
│ ─────────────────────────▶│ │
│ │ │
│ │ 2. Deal struck │
│ │ ─────────────────────▶ │
│ │ │
│ │ 3. Claim from queue │
│ │ ◀───────────────────── │
│ │ │
│ 4. Receive NFAT │ │
│ ◀───────────────────────────────────────────────── │
│ │ │
│ │ 5. Record terms │
│ │ in Synome │
Phase 2: Capital Deployment
Once the NFAT is minted, lpha-nfat deploys the capital:
- lpha-nfat transfers funds from the Facility to the RWA endpoint via the PAU
- Rate limits enforced by the PAU's RateLimits contract
- Position data updated in Synome and Halo Artifact
- Off-ramp executed (stablecoin → fiat if needed)
lpha-nfat PAU RWA Endpoint
│ │ │
│ 1. Deploy 25M │ │
│ ─────────────────────▶│ │
│ │ 2. Rate limit check │
│ │ (within bounds ✓) │
│ │ │
│ │ 3. Transfer to endpoint │
│ │ ─────────────────────▶ │
│ │ │
│ 4. Update Synome │ │
│ position data │ │
Phase 3: Redemption Processing
When funds return to the PAU (at maturity or early redemption):
- RWA endpoint returns funds to the PAU (principal + yield)
- lpha-nfat detects the incoming funds
- lpha-nfat transfers funds to the Redeem Contract
- NFAT holder notified that redemption is available
- NFAT holder claims from Redeem Contract (burns NFAT)
RWA Endpoint PAU lpha-nfat Redeem Contract
│ │ │ │
│ 1. Return funds │ │ │
│ ─────────────────▶│ │ │
│ │ │ │
│ │ 2. Funds received │ │
│ │ ─────────────────▶ │ │
│ │ │ │
│ │ │ 3. Move to Redeem │
│ │ │ ───────────────────▶│
│ │ │ │
│ │ │ 4. Notify holder │
│ │ │ │
│
NFAT Holder ──────────────────────────────────────── 5. Claim funds ──▶│
◀─────────────────────────────────────── 6. Receive funds ─│
(NFAT burned)
NFAT Facility Components
Queue Contract
Where Primes deposit capital awaiting deal execution.
| Property | Description |
|---|---|
| Deposits | sUSDS from approved Primes |
| Visibility | Primes can see their queue position |
| Withdrawal | Primes can exit queue before deal execution |
| Claiming | Only lpha-nfat can claim from queue |
Redeem Contract
Where the Halo deposits funds for NFAT holders to claim.
| Property | Description |
|---|---|
| Deposits | lpha-nfat deposits returned funds |
| Claims | NFAT holder presents NFAT to claim |
| NFAT Burn | Claiming burns the NFAT |
| Partial | Supports partial redemptions for amortizing deals |
PAU (Parallelized Allocation Unit)
Standard Laniakea infrastructure for capital flows.
| Component | Function |
|---|---|
| Controller | Authorization and access control |
| ALMProxy | Asset-liability management interface |
| RateLimits | Flow constraints (SORL-governed) |
Capital Flow Lifecycle
┌─────────────────────────────────────────────────────────────────────────┐
│ COMPLETE NFAT LIFECYCLE │
│ │
│ PRIME │
│ │ │
│ │ 1. Deposit sUSDS to Queue │
│ ▼ │
│ ┌─────────────────┐ │
│ │ QUEUE CONTRACT │ │
│ └────────┬────────┘ │
│ │ │
│ │ 2. lpha-nfat claims, mints NFAT │
│ ▼ │
│ ┌─────────────────┐ ┌─────────────────┐ │
│ │ lpha-nfat │───────▶│ NFAT minted │───────▶ PRIME holds │
│ │ SENTINEL │ │ (ERC-721) │ transferable │
│ └────────┬────────┘ └─────────────────┘ position │
│ │ │
│ │ 3. Deploy via PAU │
│ ▼ │
│ ┌─────────────────┐ │
│ │ PAU │ │
│ │ (rate-limited) │ │
│ └────────┬────────┘ │
│ │ │
│ │ 4. Funds to RWA │
│ ▼ │
│ ┌─────────────────┐ │
│ │ RWA ENDPOINT │ ← Yield accrues, terms tracked in Synome │
│ └────────┬────────┘ │
│ │ │
│ │ 5. At maturity: return funds │
│ ▼ │
│ ┌─────────────────┐ │
│ │ PAU │ │
│ └────────┬────────┘ │
│ │ │
│ │ 6. lpha-nfat moves to Redeem Contract │
│ ▼ │
│ ┌─────────────────┐ │
│ │ REDEEM CONTRACT │ │
│ └────────┬────────┘ │
│ │ │
│ │ 7. NFAT holder claims, NFAT burned │
│ ▼ │
│ PRIME (or transferee) receives principal + yield │
│ │
└─────────────────────────────────────────────────────────────────────────┘
Legal Infrastructure
The Buybox Model
Each NFAT Facility defines a buybox — the acceptable parameter ranges for deals within that facility:
| Parameter | Example Buybox |
|---|---|
| Duration Range | 6-24 months |
| Size Range | 5M-100M per NFAT |
| APY Range | 8-15% |
| Counterparties | Approved Primes only |
| Asset Types | Senior secured loans, investment-grade bonds |
| Jurisdiction | Specified regulatory frameworks |
Any deal within the buybox can be executed by lpha-nfat without additional governance approval. Deals outside the buybox require governance intervention.
Bankruptcy Remoteness
Each NFAT represents a claim on a distinct Halo Unit — a governance-level construct that is legally and operationally isolated:
- If one NFAT's underlying deal fails, other NFATs are protected
- Each Halo Unit is like a serialized LLC
- Recourse is limited to the specific Unit's assets
Governance Artifacts
| Artifact | Contents |
|---|---|
| Halo Artifact | Overall governance, buybox definitions, recourse mechanisms |
| Unit Artifact | Per-NFAT operational parameters, legal recourse, deal terms |
| Synome Records | Real-time position data, yield schedules, maturity tracking |
Operational Oversight
The lpha-nfat beacon operates alongside other beacons for safety:
| Component | Type | Role |
|---|---|---|
| lpha-nfat | LPHA beacon | Primary execution — issuance, deployment, redemption |
| stl-warden | Sentinel | Independent oversight — risk monitoring, halt authority |
| lpla-checker | LPLA beacon | Protocol-level position verification |
Beacon Permissions
| Action | Required Permission |
|---|---|
| Claim from Queue | pBEAM on Queue Contract |
| Mint NFAT | pBEAM on NFAT Contract |
| Deploy via PAU | pBEAM on Controller |
| Move to Redeem | pBEAM on Redeem Contract |
All actions are rate-limited and logged. Wardens can halt operations if risk thresholds are breached.
Comparison with Sentinel Formations
The lpha-nfat beacon follows a similar capital flow pattern to sentinel formations, but operates deterministically rather than with proprietary intelligence:
| Aspect | Sentinel Formation (stl-base) | Halo LPHA Beacon (lpha-nfat) |
|---|---|---|
| Type | HPHA sentinel | LPHA beacon |
| Intelligence | Proprietary, real-time | Deterministic, rule-based |
| Ingress | Risk capital from Primes | NFAT capital from Primes |
| Deploy | Leverage into yield opportunities | Funds to RWA endpoints |
| Manage | Trading positions | NFAT positions |
| Egress | Returns to Prime treasury | Returns to Redeem Contract |
Both operate PAUs and are rate-limited. Sentinel formations have warden oversight for their real-time decisions; LPHA beacons execute predefined rules.
Benefits for Counterparties
For Primes
- Bespoke terms — negotiate specific duration, size, yield
- Transferable positions — NFATs can be sold or used as collateral
- Transparency — all terms recorded in Synome
- Isolation — each NFAT is bankruptcy remote
For Asset Managers
- Scalable bespoke deals — same legal framework, many individual transactions
- Automated operations — lpha-nfat handles execution
- Clear recourse — buybox and Halo Artifact define all terms
- Institutional capital — access to Prime allocations
Launching a Structuring Halo
Process Overview
- Define Buybox — parameter ranges, counterparty requirements, asset types
- Legal Framework — establish Halo Artifact, recourse mechanisms
- Deploy Infrastructure — PAU, Queue, Redeem, NFAT contracts via Laniakea Factory
- Configure Sentinel — lpha-nfat with appropriate pBEAMs
- Governance Approval — Halo Artifact Edit
- Go Live — Primes can queue capital, lpha-nfat executes deals
Timeline
| Phase | Duration |
|---|---|
| Buybox definition | 1-2 weeks |
| Legal framework | 2-4 weeks (reuses templates) |
| Smart contract deployment | Days (factory deployment) |
| Governance approval | ~1 week |
| Total | 4-8 weeks |
Summary
Structuring Halos enable bespoke structured deals at institutional scale:
- NFAT-based — each position is individual, non-fungible, transferable
- Buybox-constrained — deals vary within defined parameters
- LPHA beacon-operated — lpha-nfat handles the complete lifecycle deterministically
- PAU-integrated — standard Laniakea rate-limited infrastructure
- Bankruptcy remote — each NFAT is a separate Halo Unit
The capital flow mirrors Prime operations (ingress → deploy → manage → redeem), but lpha-nfat is an LPHA beacon (deterministic rule execution) rather than a sentinel (real-time intelligent control).
Related Documents
| Document | Relationship |
|---|---|
nfats.md |
NFAT standard specification |
passthrough-halo.md |
Alternative Halo type using LCTS |
sentinel-network.md |
Sentinel formation architecture (stl-base, stl-stream, stl-warden) |
beacon-framework.md |
lpha-nfat as LPHA beacon |
Document Version: 0.1 Last Updated: 2026-01-27