> For the complete documentation index, see [llms.txt](https://docs.trilobyte.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.trilobyte.finance/resources/changelog.md).

# Changelog

## September 2026 — Tranched-waterfall protocol

The largest change to the protocol since launch: loans now fund across two investor tranches and repay through a strict, ordered waterfall, replacing the fixed `split_ratio` / single EMI-pool model. A cluster of related safeguards shipped in the same release, since several of them touch the same storage layouts and events.

### Tranches and the waterfall

* Every vault now has a **senior** and a **junior** tranche. The pool manager's collateral anchors junior; junior must be locked (`lock_junior`) before senior can be funded, up to a **leverage ratio** that caps senior as a multiple of junior.
* Repayments and default recoveries flow through a **six-bucket waterfall**: reserve fee → senior interest → senior principal → junior interest → junior principal → residual (borrower cash pool). Underpaid buckets carry forward as arrears, cleared before new dues.
* Junior earns a governed **spread** taken from senior's interest; the protocol's own cut moved from a flat post-split fee to a **reserve fee** on interest, senior-most in the waterfall.
* Default recovery pays out strictly senior-first across principal and interest for both tranches before any residual reaches the manager or borrower.
* A **NAV write-down** (`get_senior_nav` / `get_junior_nav`) gives investors an early, reversible signal of distress before a loan is formally in default.

### New safeguards

* **Exposure caps** — protocol-wide borrower and manager concentration limits, gated by a concentration floor so early loans aren't blocked.
* **Loan-level covenants** — a cash-pool lock while a borrower has a missed payment, and an optional reporting-cadence covenant.
* **Compliance gate** — an optional, protocol-wide `is_allowed(who, action)` check, with a first implementation in the new [Compliance Allowlist](/technical-documentation/compliance-allowlist-contract.md) contract.
* **Related-party rule** — a manager can never be their own borrower; a separate disclosure flag covers deals that are related without the addresses matching.
* **Collateral asset policy** — a dedicated collateral-asset whitelist, and a minimum pledge-to-principal ratio for borrower collateral.
* **Configurable investor cap and minimum investment** — replacing a hardcoded 100-investor limit, with pull-based, paginated refunds and TTL bumps so cost never scales with investor count.
* **Two-party renegotiation** — approving a renegotiation now requires both the manager and the borrower to authorize it, with bounds on how far a single round can cut the current rate.
* **Upgrade-authority hardening** — Globals can require the Timelock as the enforced admin for contract upgrades and admin transfers, not just a role convention.

### Lifecycle

* New terminal **Cancelled** phase for a vault that misses its funding or approval deadline, with self-service `claim_refund` per investor rather than a single push-refund call.
* `finalize()` now closes FullyRepaid, Cancelled, and Defaulted vaults alike, once each one's own wind-down condition is met.

### New contracts

* **CollateralEscrow** — generalised to per-pledge accounting (removing an earlier one-pledge-per-token griefing vector) and made Upgradeable.
* **ComplianceAllowlist** — the compliance-gate's first implementation.

### Documentation and tooling

* A generated, versioned event schema (`("trilo", name, schema_version)` topics) across every contract, checked in CI.
* A shared `common-types` crate removing hand-mirrored cross-contract structs, and an "upgrade-path rule" adopted after a testnet Factory was bricked by exactly that kind of drift.
* A shorter TTL window for contract-instance storage (and the shared vault Wasm code entry it drags along), after a fee-cap incident on testnet.

See [Testnet Deployment](/technical-documentation/testnet-deployment.md) for the current sandbox addresses, and [Payments & the Waterfall](/protocol-mechanics/payments-and-emi.md) for the full worked example.

*As of September 2026.*