Issuer Bond Calls

Bond issuers may exercise the call provision on their bonds, redeeming part or all of the outstanding Bond Tokens at the contractual call price. Each holder's position is reduced pro-rata and settled in stablecoins. Sequential partial calls are supported, each call is registered and executed on its own, and any uncalled Bond Tokens remain outstanding until a later call or maturity.

When a call is registered, Bond Tokens enter a full onchain freeze: no transfers, DEX trades, vault deposits, mints, principal redemptions, or complianceBurn can proceed, the only allowed state change is the relayer burning each holder's callable slice via executeCallForUser. Bondi runs this relayer pass immediately and the freeze typically lasts only minutes; transfers resume automatically once every holder in the snapshot has been processed.

Issuer Bond Call Flow

Segregated AccountSeg. Account

AdminAdmin

OrchestratorOrchestrator

Distribution ContractDistribution

RelayerRelayer

Bond Token HolderToken Holder

Reinvestment / Redemption VaultsBondi Vault

1→Transfer gross stablecoin for call

2→registerCall(callAmount, callRatioBps)

3. Holder snapshot

↻Snapshot Bond Token holder balances

4. Relayer execution (per holder)

executeCallForUser(callId, user/vault, expectedBalance)←

If balance matches

→Burn callable BT + pay stablecoins (eligible KYC wallet)

→Burn callable BT + pay stablecoins + registerCall callback (whitelisted Bondi vault)

↻Burn callable BT + record stablecoin entitlement for later claim (no KYC)

If balance drifted → refresh snapshot & retry

→Balance drifted (live balance ≠ expectedBalance)

Notify Orchestrator←

↻Refresh Bond Token holder snapshot

Retry executeCallForUser until full match←

Self-claim after KYC (ineligible at call time)

claimCall(callId)←

→Pay recorded stablecoin entitlement

1. Segregated Account Funds Distribution
The regulated segregated account (the "Cell") administered by Ensuro Re Ltd. transfers the gross stablecoin amount for the call into the Distribution contract.

2. Call Registration
The Distribution Safe (Admin in the diagram above) calls Distribution.registerCall(callAmount, callRatioBps). Commission is deducted using the immutable principalCommissionBps set at deployment time per Bond Token and distributed to Bondi and its configured distribution partners. The net call liability, a per-token call price, and the registration block are recorded onchain and emitted in CallAnnounced(callId, blockNumber, callRatioBps, callPricePerBt, netAmount). A solvency check is run at the registration time. registerCall immediately triggers a full Bond Token freeze: nothing else can move onchain until the relayer pass below is complete.

3. Holder Snapshot
Bondi's orchestrator snapshots all Bond Token holder balances at the snapshot block in CallAnnounced (the registerCall block) recording each holder's balance at that point in time (same pattern as CouponAnnounced).

4. Relayer Execution
While the freeze is active, Bondi's relayer works through the snapshot holder by holder via executeCallForUser(callId, user, expectedBalance): one address per transaction, using the balance recorded in step 3. Each holder's callable slice is burned and settled (or entitlement recorded where KYC is missing). Once every holder in the snapshot has been processed, the freeze lifts automatically and normal transferability resumes.

• KYC or Bondi Vault: If the address is a KYC-verified wallet or a whitelisted Bondi vault (Reinvestment/Redemption), the callable Bond Token amount is burned and stablecoins are paid in the same transaction. For whitelisted vaults, Distribution also triggers registerCall on the vault in the same transaction. For the Redemption Vault, the called slice becomes claimable once the vault is processed and Bondi's relayer then redeems for each depositor (a 100% call settles the entire pending batch this way). Any uncalled remainder stays pending and is handled through a later broker resale or maturity.
• No KYC: The callable Bond Tokens are burned and the stablecoin payout amount is recorded for the holder to claim after KYC completion.

Claiming After a Bond Call

Eligible addresses are settled automatically by the relayer, Bond Tokens burned and stablecoins paid in the same transaction. Here, "eligible" means KYC-verified wallet holders and whitelisted Bondi vaults (Reinvestment/Redemption). One additional path exists for holders who did not have KYC at the time the relayer processed them:

No KYC at call time: If a holder's KYC was not valid when the relayer processed them, their callable Bond Tokens were already burned at that point and the stablecoin entitlement is recorded onchain. Once KYC is completed, the holder can claim their stablecoin payout through the Bondi frontend via claimCall(callId).

Vault Settlement on Bond Call

Whitelisted Bondi vaults (Reinvestment Vault and Redemption Vault) are processed through the same executeCallForUser entry point as wallet holders, see the vault branch in the Issuer Bond Call Flow diagram above. Distribution burns the vault's callable Bond Tokens, pays call proceeds, and triggers registerCall on the vault in a single transaction. What happens next depends on which vault holds the Bond Tokens:

RelayerRelayer

Distribution ContractDistribution

Reinvestment / Redemption VaultsVaults

Vault Share HoldersShare Holders

1→executeCallForUser(callId, vault, expectedBalance)

2→Burn callable BT + pay stablecoins + registerCall callback (single tx)

3. Redemption Vault share (RV shares) holders

→redeem(shares, sharesHolder, bondiRelayer) — called slice is immediately claimed for the RV holders

→Pay call proceeds + accrued coupons (no minimum-lot wait for called portion (+ principal proceeds if exiting after the maturity)

3. Reinvestment Vault share (vbtXXX) holders

↻pendingCallStable recorded; btComponent ↓ stableComponent ↑ — share price unchanged

Unwinding after a call

claimCallProceeds(vbtToBurn) — KYC-verified holder unwinds their own slice←

→Pay call stable at the contractual call rate

Payout to holders before full unwind conditional on KYC status

redeem(shares)←

→KYC-verified → Bond Tokens + call slice as BT if the swap clears; as stable if it cannot — or Bond Tokens + call slice as stable via redeemToBTAndStable (user by choice, no swap)

→Non-KYC-verified → Bond Tokens; call slice swapped to BT, or recorded onchain (entitledStable) to claim after KYC if the swap cannot clear

Redemption Vault (RV shares, batch pending): The called slice of each depositor's pending Bond Tokens settles immediately from call proceeds, no minimum-lot wait and no broker sale for that portion. Admin fulfills the called batch; the relayer redeems each depositor's RV shares. A 100% call settles the entire pending batch this way. Any uncalled remainder stays in the batch under the normal early-redemption rules. See Redemption Vault outcomes, outcome 4.

Reinvestment Vault (vbtXXX): Call proceeds are recorded as pendingCallStable inside the vault. From there, three things can happen to that stablecoin: Bondi can reinvest it into Bond Tokens via reinvestCallStable when the pool can absorb the swap; a KYC-verified holder can unwind their own slice directly via claimCallProceeds without fully exiting the vault, typically to free up cash or delever a Morpho position; or it settles pro-rata for every holder on exit via redeem or withdraw. A bond call is often an institutional-size event that the Bond Token pool cannot absorb in a single swap at a fair price, which is why distributing or unwinding (rather than forcing a reinvestment) is often the right call. Either way, the share price is unaffected at the moment of the call: the value simply shifts from Bond Token form into stable form within the same vault. On redeem/withdraw, the vault first tries to swap each holder's pro-rata call slice into Bond Tokens, the normal exit path. If the swap clears, everyone receives Bond Tokens. If it cannot clear within the holder's tolerance, KYC-verified holders receive Bond Tokens plus their slice as stablecoin; non-KYC-verified holders receive Bond Tokens and the slice is recorded as entitledStable for claim after KYC. Or, if they prefer, a KYC-verified holder can choose redeemToBTAndStable to take the call slice as stable directly, with no swap. See Why Unwinding Exists, Compliance at Reinvestment Vault Exit, and Called Bonds in the Reinvestment Vault.