Immutable principal floor
The original principal is set at deposit creation and becomes the floor every later operation must honor.
Verifiable by third parties
Landlords, tenants, auditors, and counsel can inspect the contract, bond records, and Base settlement history.
Policy becomes evidence
Mutual assent, disclosures, fee attempts, Sentinel actions, and settlement decisions are logged for review.
Architecture
What happens if someone tries to breach the floor?
The transaction does not pause for an approval meeting. It fails. Huddle's core protection is a refusal path: fees, settlement, emergency functions, and withdrawals cannot proceed when the resulting bond value would fall below the original principal.
Contract invariant
if currentValue < originalPrincipal: revert GoldenRuleViolation()
Principal
Recorded once
Oracle
BTC/USD value check
Reserve
USDC volatility backstop
Authority
2-of-3 treasury multisig
Lifecycle evidence
Six checkpoints every counsel can understand.
Deposit records original principal
Logged as part of the bond's operating record.
USDC converts into the bond position
Logged as part of the bond's operating record.
Oracle checks current collateral value
Logged as part of the bond's operating record.
Fees and settlement must pass the principal floor
Logged as part of the bond's operating record.
Sentinel logs alerts, decisions, and safety actions
Logged as part of the bond's operating record.
Withdrawal or transfer preserves the original claim
Logged as part of the bond's operating record.
Legal review summary
This page replaces "trust us" with "verify it yourself."
Huddle's deposit protection exists to answer a practical institutional question: what happens to the tenant's deposit if a company, landlord, bank, or operator fails?
The answer is that the original principal is recorded as a contract-level floor. Every value-moving operation must prove the bond remains above that floor. If it cannot, the blockchain rejects the operation.
This document is technical product documentation, not legal, financial, or investment advice. Institutional users should review the contract code, disclosures, and jurisdiction-specific obligations with counsel.