Sale Channels
How a recovery-fund side pocket can use direct sales, permissioned English auctions, or invited RFQs to realize value.
After a fund acquires a distressed asset, the side pocket can use one of three controlled sale routes. Each route reserves an exact asset lot, uses the fund quote asset for payment, and records realized proceeds against that side pocket.
| Route | Best for | Buyer access | How value settles |
|---|---|---|---|
| Direct sale | A known counterparty and a fixed price. | The named buyer must hold the fund's buyer role. | The buyer pays the exact quote amount and receives the exact reserved lot. |
| Permissioned English auction | Price discovery across eligible buyers. | Bidders must hold the fund's buyer role. | Each bid is fully escrowed; the highest eligible bid settles after the auction closes. |
| Invited RFQ | A discrete set of approved counterparties and a reference-price floor. | Only invited, verified buyers can bid. | Bids are escrowed; the best current eligible bid can settle after the RFQ deadline. |
Direct sales
A manager with trading permission creates a sale order for one side pocket, named buyer, asset amount, quote amount, expiry, and evidence hash. The buyer must still be eligible when filling the order. Until the order settles or is cancelled, the asset lot is reserved and cannot be sold or claimed through another route.
Permissioned English auctions
An auction is not a public, permissionless sale. The manager creates an exact-lot auction with a reserve quote amount, duration, minimum bid increment, optional anti-sniping window, and evidence reference. The fund reserves the lot through its controlled action approval.
- Buyers escrow the full quote amount when bidding.
- An outbid buyer receives a refundable quote balance and withdraws it through the refund action.
- A late bid can extend the end time only within the configured anti-sniping limit.
- After close, anyone can finalize an auction with a highest bidder, but the winner must still hold the buyer role.
- If the fund is paused or the highest bidder loses eligibility, the auction is cancelled, the lot is released to the side pocket, and the escrowed bid becomes refundable.
Invited RFQs
The manager creates an RFQ for one side-pocket lot with a price source, reference quote amount, price timestamp, deadline, invited buyer list, and evidence. Invited verified buyers can place, replace, or cancel an active bid. A bid must meet the current price floor. At the deadline the escrow chooses the best current eligible bid, refunds non-winning bids, and either settles the lot or releases it back to the side pocket if settlement cannot complete.
Before choosing a route
Review the asset lot, remaining side-pocket balance, buyer eligibility, deadline, price context, evidence, and fund pause state. A sale channel realizes value only after its onchain settlement is confirmed and projected into the fund workspace.