The documentation behind the rail
Every claim on the site has a rigorous spec behind it.
Preflop is a market for an asset class that already exists, and the math has to hold up. These pages are the source of truth — the instrument definitions, the pricing derivations, the ledger invariants, and the on-chain surface. Read the ones your mental model needs; the rest stay one click away.
Building now
Phase 1 · the private market
Instrument
Two-Phase Uncapped Covenant
A fixed-term income-linked dividend stream that converts into a perpetual Person Token. Four parameters, 10,000-token fixed supply, five Phase 2 holder rights, and the power-law reasoning behind no-cap.
Open spec →Instrument
Total Economic Benefit
The comprehensive denominator. Every door an issuer could use to route around a covenant — wage, equity, K-1, non-cash FMV — lives inside the definition. Attestation rails: Plaid, tax filings, on-chain audit trail.
Open spec →Foundation
Human Capital — VHC, eeff, the cap theorem
The mathematical bridge from income (flow) to wealth (stock). Defines VHC, the effective equity rate eeff, the κ self-valuation ratio, and proves that a 25% flow cap on TEB implies a 25% stock cap on aggregate fractional ownership. The keystone of the whole instrument.
Open spec →Foundation
Raise Mechanism — the auction
Sealed-bid, uniform-price Dutch auction with allocation cap, engine-anchored reserve, AON partial-clearing, and on-chain threshold-encrypted settlement. Live listing flow today is fixed-price subscription; the auction mechanism described here is the design target for a future engine version.
Open spec →Lifecycle
Pre-IPO Lock & IPO Unlock
Three unlock triggers — 4+ income reports, score ≥ 60, funding ≥ 50%. Why each threshold exists, what Phase 1 holders can and can't do during lock, and the irreversibility guarantee at unlock.
Open spec →Lifecycle
Terminal Values — how the perpetual claim settles
Three events that settle a covenant’s perpetual claim: death or incapacity, issuer-initiated buyback (VWAP-plus-premium guardrail with a 110% face-value floor), and cycle close (rollover or close-out at a published reference). Architecture finalized. Specific parameters and counsel positions pending review. Open questions tagged inline.
Open spec →On-chain
Smart Contract Hardening
Contract surface, on-chain invariants (10,000 supply, monotonic funded_amount, half-open windows), access control, immutability posture, and the audit roadmap.
Open spec →Foundation
Ethics — the constitution of the platform
The keystone spec. Consent, privacy, power asymmetry, psychological burden, adverse selection, and commodification — the four predictable critiques of a market in human capital, engineered against rather than waved away. Protection stack with owners and dates; ethics is treated as a product surface, not a footer.
Open spec →Building next
Phase 2 · pricing engine and secondary market
Math
Pricing
The four stages — Forecast → VHC → Vclaim and eeff → per-token reference. Gordon model, GBM drift, circuit breakers, the information-event repricing table, and the full return decomposition with sensitivity analysis.
Open spec →Foundation
Forecast Engine — how Preflop forecasts a person's future income
Cohort baselines + bounded adjustments + Bayesian shrinkage + cohort-shape-aware bands. Engine v2.1.0 produces every TEBForecast that flows into VHC, eeff, and κ. Five priority cohorts, 15-adjustment table, full provenance, honest cold-start labels. The engine no competitor has.
Open spec →Math
Conviction Engine v2
Eleven signals, 0.6 backward + 0.4 forward. Today: curation. Tomorrow: anchoring. The calibration harness logs realized-vs-forecast TEB from day one — this is how every valuation engine in history has bootstrapped.
Open spec →Foundation
Discount Rate v1 — cohort-conditional r
How Preflop sets the discount rate r that prices every token. Three components (rf + βc·ERP + πilliq), cohort-conditional via β only, with mortality moved into the VHC integration as a survival function. Live engine still uses r = 12% flat; ships in engine v2.2.0.
Open spec →Foundation
Cohort Priors v2 — entry-pool re-anchoring
How Preflop anchors per-cohort baselines against survivorship bias. Re-anchored to entry-pool data sources (Census ABS, BLS, AAMC, NCAA, IRS); survival-mixture aware VHC integration with cohort-stay curve Pstay(t) and exit-cohort fallback. Coordinated pair with Discount Rate v1; ships in engine v2.3.0.
Open spec →Math
Adjustment Elasticities v1 — literature anchors for the 15-table
How Preflop replaces the 15-adjustment table’s first-principles seeds with literature-anchored elasticities. Methodology + adjustments #1 (Guvenen 2007 AER), #2 (Meghir-Pistaferri 2004 Econometrica, with split anchor — M-P breakpoints, saturation-anchored slope), #3 (declared curation signal, BLS + SOI descriptive context, no fabricated cite). Adj #4–15 in subsequent sessions.
Open spec →Instrument
Direct Listing
For people with five-plus years of documented trajectory. Perpetual e% claim from day one, no principal, no covenant period. Review, lockup, and how it cross-lists with existing covenants.
Open spec →Math
Cross-Listing Math & the Obligation Ledger
Every token is a (share_rate, time-window) slice of future TEB. A single 25% invariant keeps the stack coherent. Two independent cap-check algorithms — analytic transition scan + monthly bucket — cross-validated by 75 tests.
Open spec →