1. Protocol-Level Allocation
JIL Sovereign Technologies, Inc. allocates 10% of net profits to charitable giving, enforced at the L1 protocol level (the “Allocation”). The Allocation cannot be revised by Operating Co board action; revision requires a protocol amendment under the L1 governance procedure.
2. Jurisdictional Routing
The Allocation routes to five jurisdictional Vaults based on the geographic origin of the underlying revenue:
- US-sourced revenue → US Vault → Global Hands (501(c)(3))
- Switzerland-sourced revenue → CH Vault → Swiss foundation (formation pending)
- UAE-sourced revenue → AE Vault → UAE charitable association (formation pending)
- Singapore-sourced revenue → SG Vault → Singapore IPC (formation pending)
- Brazil-sourced revenue → BR Vault → OSCIP / association (formation pending)
Revenue with no clear jurisdictional origin allocates to the US Vault by default, subject to advisory council review.
3. Vault Sub-Account Structure
Each Vault has five logically separated sub-accounts: Inflow, Operations (5%), Grant Capital (95%), Recovery, and Reserved Obligations.
4. Recovery Routing
Recovered funds (net of recovery costs capped at 25% of recovered amount) re-route to the originating Vault's Grant Capital sub-account within 30 days. Recovered funds never return to Operating Co or Holdings.
5. Cross-Vault Transfers
Cross-Vault transfers are not permitted under standing rules. Exceptions require advisory-council approval and are limited to disaster response and multi-jurisdictional grants.
6. Surplus Rollover
Unspent Operations sub-account at fiscal year close rolls over automatically to Grant Capital in the same Vault.