What Modulexo Is Not

(Hard Negations)

0.3 What Modulexo Is Not

Structural Clarification

Modulexo is execution infrastructure.

It is not a financial product, not an investment vehicle, and not a recovery mechanism.

Its behavior is fully defined by deployed smart contracts.

Anything not present in contract logic does not exist within the system.

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Modulexo Is Not:

1. Not a Yield Protocol

Modulexo does not promise APR, APY, or fixed return.

Native distributions occur strictly through:

• accNativePerWeight

• weightOf(address)

• claimable(address)

Distribution depends solely on:

• System usage

• Fee routing

• Weight proportions

There is no guaranteed income stream.

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2. Not an Investment Contract

Participation in recycle execution:

• Does not represent equity

• Does not create ownership in the protocol

• Does not create contractual entitlement

• Does not represent a share in underlying assets (except within Fund governance where explicitly defined)

Accounting weight is not a security.

Weight is an internal proportional ledger metric.

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3. Not a Token Recovery Mechanism

Recycling permanently removes tokens.

Tokens surrendered via SponsorshipLedger:

• Are forwarded to blackHole()

• Are not redeemable

• Are not reversible

Modulexo does not restore prior token value.

It does not compensate prior losses.

It does not guarantee recovery of capital.

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4. Not Custodial

Modulexo does not custody user tokens for speculative deployment.

Token transfer to SponsorshipLedger results in:

• Immediate burn routing

• Accounting unit allocation only

There is no pooled token treasury for discretionary management.

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5. Not a Speculative Asset Platform

Modulexo does not:

• Market price appreciation

• Promote trading activity

• Encourage token speculation

• Provide financial advice

The system executes deterministic accounting transformations.

It does not speculate.

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6. Not Off-Chain Governance

All governance actions (where applicable) are:

• Executed via smart contracts

• Controlled by Governor + Timelock

• Verifiable through proposal logs

There is no off-chain override.

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Participation Reality

Users interacting with Modulexo:

• Pay native value for execution

• Consume accounting units

• Receive accounting weight

• May claim proportional native distribution

This is a mechanical process.

There are no promises attached to participation.

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Enforcement Principle

If a behavior cannot be derived from:

• Contract source code

• Verified ABI

• On-chain events

It is not part of Modulexo.