Fiduciary Alignment

Conventional capital systems often optimize yield while socializing risk. Sagitta inverts this model by enforcing depositor protection before optimization.

The protocol treats principal safety, solvency, and continuity as first-order constraints.

Participant principal is protected through reserve-backed coverage and strict settlement hierarchy.

Allocation expansion is limited by insured capacity instead of discretionary growth targets.

Adverse outcomes are absorbed and reconciled at the protocol level under explicit loss ordering.

Downside is handled by architecture rather than passed directly to participants by discretionary decision.

Performance is evaluated relative to reserve health, coverage sufficiency, and continuity posture.

Returns that weaken protection posture are treated as protocol deterioration rather than success.

Growth is allowed only when reserve capacity and systemic health support expansion.

This creates solvency-first scaling and limits fragility during stress cycles.

Governance authority is bounded by invariant doctrine and cannot override depositor protection constraints.

Under failure conditions, continuity rules supersede growth preferences.

Fiduciary alignment emerges from architecture and persists across market cycles because protection rules are encoded into the protocol stack.

The model is designed to remain protective when conditions deteriorate, not only when conditions are favorable.

Sagitta's fiduciary posture is mechanical, not rhetorical.

Protection, accountability, and continuity are enforced by structure, making fiduciary behavior durable and auditable.