Pavilion — System Architecture

Asset lifecycle — from allocation to trading

Numbered edges are the five steps in strict order. Tokens are minted at step 4 only after custody is confirmed; nothing on the right lane exists before everything on the left lane has settled.

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flowchart LR
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  classDef off fill:#F3EAD6,stroke:#A87A24,stroke-width:1.5px,color:#101815
  classDef token fill:#2E7D57,stroke:#2E7D57,stroke-width:1.5px,color:#F5FAF6
  classDef actor fill:#FAFBF8,stroke:#101815,stroke-width:1.5px,color:#101815

  U["Investor
(KYC at allocation)"]:::actor

  subgraph RC["ROBINHOOD CHAIN — on-chain"]
    AV["Allocation vault
USDC escrow · refund path"]:::chain
    RT["Receipt token
rBYTE (ERC-20)"]:::chain
    MC["Merkle claim contract
burn receipt → claim"]:::chain
    TK["BYTE.pvln
ERC-20 · 1:1 backed"]:::token
    LP["Uniswap v3/v4 pool
seeded w/ 100% of 5% fee"]:::chain
    AT["On-chain attestation
quarterly, per vehicle"]:::chain
  end

  subgraph OC["OFF-CHAIN — venues, custody, issuer"]
    EX["Execution venue
Caplight · direct or SPV"]:::off
    CU["Qualified custodian
private securities"]:::off
    SP["Segregated portfolio
SP-BYTE-D (sole asset)"]:::off
  end

  MM["Pavilion MM desk"]:::actor

  U -- "1 · deposit USDC" --> AV
  AV -- "mints" --> RT
  AV -- "2 · capital on fill
(refund if raise fails)" --> EX
  EX -- "3 · shares settle" --> CU
  CU --- SP
  SP -- "4 · custody confirmed
authorizes mint" --> MC
  RT -- "burned" --> MC
  MC -- "claim" --> TK
  TK -- "5 · trades 24/7" --> LP
  MM -. "manages range" .-> LP
  SP -. "attests" .-> AT
  TK -- "KYC redemption
take delivery" --> CU

ON-CHAIN CONTRACT OFF-CHAIN VENUE / CUSTODY LIVE TOKEN ACTOR

STEP 1Fill. Deposits sit in an audited escrow vault; the receipt token is the investor's pro-rata claim. If the raise fails or execution misses target, the vault refunds in full.
STEP 2–3Purchase & settle. Capital moves off-chain only once the allocation fills. Shares (or SPV units) settle to the qualified custodian inside the listing's segregated portfolio.
STEP 4Mint on proof, claim on pull. Custody confirmation authorizes the mint into a Merkle claim contract; holders burn receipts to claim. No push-airdrops, no pre-minted supply.
STEP 5Trade. The full 5% tokenization fee funds a concentrated LP that our market-making desk manages from block one. Redemption (with KYC) burns tokens against delivery of the underlying.

Entity map — who holds what

The operating company never touches client assets. Each share class is issued by its own statutorily ring-fenced segregated portfolio of a Cayman SPC, holding exactly one position with the custodian.

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  LABS["Pavilion Labs, Inc. (Delaware)
platform · MM desk · earns fees
ZERO client assets"]:::opco
  SPC["Pavilion Issuer SPC (Cayman)
master issuance vehicle"]:::legal

  SPD["SP-BYTE-Direct
segregated portfolio"]:::legal
  SPS["SP-BYTE-SPV
segregated portfolio"]:::legal

  DS["ByteDance Class A ordinary
direct · ROFR cleared
on cap table"]:::asset
  SU["SPV units
purchased via Caplight"]:::asset

  CUST["Qualified custodian
street-name custody · attested quarterly"]:::asset

  T1["BYTE.pvln"]:::token
  T2["sBYTE.pvln"]:::token
  H["Token holders
1:1 beneficial interest · KYC redemption"]:::holder

  LABS -. "services agreement
(no asset ownership)" .-> SPC
  SPC -- "ring-fenced" --> SPD
  SPC -- "ring-fenced" --> SPS
  SPD -- "sole asset" --> DS
  SPS -- "sole asset" --> SU
  DS --- CUST
  SU --- CUST
  SPD -- "issues" --> T1
  SPS -- "issues" --> T2
  T1 --> H
  T2 --> H

ISSUING VEHICLE (RING-FENCED) OPERATING COMPANY TOKEN HOLDERS

ISOLATEPer-deal bankruptcy remoteness. A creditor of one portfolio — or of Pavilion Labs itself — has no claim on any other portfolio's assets. One SPC, many portfolios: isolation without incorporating a new company per listing.
DISCLOSEProvenance is a property of the vehicle. Direct shares and SPV units never share a wrapper; BYTE.pvln and sBYTE.pvln are different claims on different portfolios, priced apart.
OFFERReg S at launch (non-US persons, KYC at allocation and redemption); Reg D 506(c) sleeve for US accredited investors as phase 2. Allowlist enforceable at the token level if counsel requires.