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Principal Repayment

This chapter describes the maturity event where the bond's principal amount is returned to the current bondholders, signifying the end of the bond's active lifecycle.

Business Flow​

  1. Scheduled Activation & Calculation:

    • A background cron job (PaydayChecker), managed by the Core Payment Service, continuously monitors the payment schedule.
    • At exactly 0:00 UTC on the PRINCIPAL Payday, it transitions to an active processing state.
    • The Core Payment Service interacts with the blockchain indexer to check the wallet status ("ENABLED") for the issuer and all owner companies.
    • A reproducible snapshot of all current eligible bondholders is taken to compute the principal repayment owed to each resolved owner.

  2. Issuer Lump Sum Collection:

    • The system generates an aggregate IssuerSettlementPayment representing the total principal the Issuer (SME) owes.
    • The Core Payment Service authorizes the receipt of payment with the PSP (Payment Service Provider) and gets an issuer payment reference.
    • The system requests a strict KYC/AML check from the Validator App (Whitelabel/Distributor). Upon success, the AML results and IBAN are sent to the PSP, which performs its own internal AML checks.
    • The Issuer Broker fetches the IssuerSettlementPayment by reference, saves it, and displays the payment instructions to the Issuer Company.
    • The Issuer Company manually executes a SEPA transfer via their 3rd-party banking app to the PSP's IBAN, using the provided payment reference.
    • The PSP informs the Core Payment Service of the successful receipt.

  3. Owner Payout Distribution (Loop):

    • Once the Issuer's lump sum is secured, the system begins a loop for each eligible owner (investor).
    • The Core Payment Service checks the owner's wallet status ("ENABLED") in the Indexer.
    • The system authorizes the payout with the PSP to get an owner payment reference.
    • Just-In-Time (JIT) KYC/AML checks are performed for the owner via the Validator App.
    • Check results and IBANs are sent to the PSP.
    • The External PSP executes the SEPA transfer to the owner's bank account.
    • The PSP confirms sending the payment to the Core Payment Service, finalizing the distribution.

Sequence Diagram​