tics

Overview

TICS is the programmatic bridge between Parthenon Fi's on-chain smart contracts and off-chain custodian infrastructure. It translates credit lifecycle events (origination, monitoring, margin calls, liquidation, release) into custodian-executable API instructions and relays custodian confirmations back to the protocol.

TICS is not a smart contract — it is a secure middleware layer that ensures the protocol's on-chain state and the custodian's off-chain reality remain synchronized.

Architecture

┌────────────────────────────────────┐
│     Canton Network Smart Contracts  │
│     (Daml: Loan, LPT, Collateral)  │
└──────────────┬─────────────────────┘
               │ Events
               ▼
┌────────────────────────────────────┐
│            TICS Engine              │
│                                    │
│  ┌──────────┐  ┌────────────────┐  │
│  │   LTV     │  │  Instruction   │  │
│  │Calculator │  │    Queue       │  │
│  └────┬─────┘  └───────┬────────┘  │
│       │                │           │
│  ┌────┴─────┐  ┌───────┴────────┐  │
│  │  Margin   │  │ Confirmation   │  │
│  │  Call Mgr │  │   Handler      │  │
│  └──────────┘  └────────────────┘  │
└──────────────┬─────────────────────┘
               │ API Calls
               ▼
┌────────────────────────────────────┐
│       Custodian API Layer           │
│                                    │
│  BitGo        Anchorage     Zodia  │
│  (Go Network) (Atlas)       (FSRA) │
└────────────────────────────────────┘

Components

LTV Calculator

Maintains continuous LTV calculations using dual oracle feeds:

• Primary feed: Chainlink decentralized price oracles

• Secondary feed: Exchange aggregator TWAP (Binance, Coinbase, Kraken)

• Divergence detection: Flags discrepancies > 5% between feeds

• Conservative fallback: Uses the higher LTV calculation for margin purposes

The LTV Calculator runs independently from the custodian's own monitoring — providing a secondary verification layer.

Margin Call Manager

Monitors all active loans against their LTV thresholds:

• Triggers margin call when LTV ≥ Margin Call LTV

• Starts Cure Period timer

• Monitors cure actions (additional collateral deposits or partial repayments)

• Triggers liquidation instruction if Cure Period expires without cure or LTV ≥ Liquidation LTV

• Logs all margin events for audit trail

Instruction Queue

Manages outbound API calls to custodians:

• Queues instructions with idempotency keys to prevent duplicate execution

• Retries failed API calls with exponential backoff

• Ensures instruction ordering (e.g., lock must precede LPT issuance)

• Logs all instructions with timestamps and custodian responses

Confirmation Handler

Processes inbound confirmations from custodians:

• Validates custodian signatures on confirmation messages

• Updates on-chain state (e.g., collateral confirmed → LPT can be minted)

• Triggers downstream workflows (e.g., collateral release → LPT burn)

• Flags discrepancies between expected and received confirmations

API Reference

Collateral Operations

Reserve Collateral

POST /collateral/reserve
{
  "loanId": "string",
  "collateralType": "BTC" | "ETH" | "RWA",
  "amount": "number",
  "custodianId": "string",
  "borrowerWallet": "string"
}
→ Response: { "reservationId": "string", "timestamp": "ISO8601", "status": "reserved" }

Lock Collateral

POST /collateral/lock
{
  "reservationId": "string",
  "lptId": "string",
  "accountControlAgreementRef": "string"
}
→ Response: { "lockId": "string", "encumbranceConfirmation": "string", "custodianSignature": "string" }

Monitor Collateral Health

GET /collateral/health/{loanId}
→ Response: {
    "currentLTV": "number",
    "collateralValue": "number",
    "primaryOraclePrice": "number",
    "secondaryOraclePrice": "number",
    "feedDivergence": "number",
    "status": "healthy" | "margin_warning" | "margin_call" | "liquidation"
  }

Issue Margin Call

POST /collateral/margin-call
{
  "loanId": "string",
  "currentLTV": "number",
  "requiredCollateral": "number",
  "curePeriodHours": "number"
}
→ Response: { "marginCallId": "string", "curePeriodExpiry": "ISO8601", "notificationSent": true }

Liquidate Collateral

POST /collateral/liquidate
{
  "loanId": "string",
  "amount": "number",
  "reason": "cure_expired" | "liquidation_ltv_breached"
}
→ Response: { "liquidationId": "string", "proceedsAmount": "number", "remainingCollateral": "number" }

Release Collateral

POST /collateral/release
{
  "loanId": "string",
  "repaymentConfirmation": "string"
}
→ Response: { "releaseId": "string", "collateralReturned": "number", "status": "released" }

Security

TICS communicates with custodians over mutually authenticated TLS connections. All instructions are:

• Signed by the TICS engine's HSM-backed key

• Validated by the custodian against the Account Control Agreement

• Logged immutably on Canton Network for audit trail

• Rate-limited to prevent instruction flooding

No single TICS instruction can override the custodian's compliance checks — the custodian independently validates every instruction against its own policy engine before execution.