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Integrity Layer

The Integrity Layer ensures correctness, verifiability, and optional privacy. PRISM is designed so financial state transitions can be reproduced and inspected. Users should not need to trust a dashboard, a server, or an operator to understand what happened to their credit exposure.

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Credit Event Verification

Credit events represent realized impairment to the vault. Primary path:

• Oracle-based triggers.
• External data providers report credit events.
• On-chain instruction applies the verified loss.

Fallback path:

• Authorized admin triggers.
• Used for early demo operation, simulation, or emergency intervention.

All credit events are recorded on-chain.

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Event Record

A credit event should make the following information observable:

• Vault affected.
• Loss amount.
• Trigger authority.
• Timestamp or slot.
• Loss distribution across tranches.
• Resulting tranche NAV values.

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Optional Privacy

PRISM can support optional shielded transfers during withdrawal flows. Privacy is not required for the base accounting model. The base model prioritizes transparent financial state. Optional privacy modules can protect user-level transfer behavior while preserving protocol-level accounting verifiability.

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Identity Extensions

Future modules can support:

• Confidential borrower scoring.
• Reputation-based risk assessment.
• Originator risk tiers.
• Institutional allowlists.
• Portfolio-level risk metadata.

These modules should not weaken the deterministic vault engine. They should add richer sourcing and risk context around it.