Sypher Capital Bitcoin Yield Fund

Green · Trust-Minimized / User-Enforced — users retain unilateral or protocol-enforced claim to BTC without relying on a single entity’s discretion. Recovery is governed by Bitcoin-native or credibly decentralized rules.

Yellow · Quorum / Qualified Custodian — recovery depends on an honest quorum, bridge signer set, federation, or regulated custodian rather than direct user control.

Red · Single-Entity Dependency — recovery depends on one company or legal structure that can freeze access, fail operationally, or leave users structurally exposed in insolvency.

Green · Limited Blast Radius — contracts are immutable or tightly scoped, and a contract failure would not directly allow unilateral loss of core user principal. Operational disruption may still be possible.

Yellow · Admin Guardrails / Contained Control — the protocol is upgradable, pauseable, or still maturing, but admin powers are primarily defensive and do not create clean unilateral control over principal.

Red · Direct Fund Control / Unbounded Blast Radius — a contract exploit or admin action can directly move collateral, rewrite withdrawal rules instantly, or materially impair principal.

Green · Economically Real / Non-Reflexive — yield comes from identifiable economic activity and would still exist if token incentives disappeared. The payout may vary with market conditions but is not sustained by emissions.

Yellow · Real Yield, Material Dependencies — yield is economically real, but a meaningful share depends on active management, basis spreads, counterparties, credit underwriting, market structure, or temporary incentive support.

Red · Reflexive / Fragile — yield depends primarily on token emissions, undercollateralized credit, aggressive leverage, or structures that weaken when new capital slows or incentives fade.

Green · Immediate & Rules-Based — users can redeem on demand with no protocol-enforced queue, lock, or discretionary gate.

Yellow · Queued / Market-Dependent — exits are allowed, but require notice, unbonding, cool-down periods, batch processing, or reliance on secondary-market liquidity.

Red · Locked / Discretionary — exits can be blocked by fixed lockups, manual intervention, legal restrictions, or terms that allow the operator to pause redemptions during stress.

Green · Continuously Verifiable — a third party can independently verify solvency, backing, and strategy exposure on a continuous or near-real-time basis, either on-chain or via public cryptographic attestations.

Yellow · Delayed / Partial Attestation — transparency is present but delayed, incomplete, or dependent on a single authorized verifier (e.g., periodic proof-of-reserves, monthly auditor reports, proof of assets without liabilities).

Red · Opaque / Black Box — no cryptographic proof of reserves, hidden wallet addresses or counterparties, omitted liabilities, or a proprietary non-auditable yield engine.