Platform · Structured Credit
Tranches that pay in the right order, deterministically
Unykorn splits a mortgage pool into risk tranches and enforces the payment waterfall in code. Subordination and loss isolation are properties of the contract, not of a servicer’s spreadsheet.
How is a Unykorn CMBS deal structured?
Into a three-tier stack with a deterministic waterfall:
| Tranche | Class | Position |
|---|---|---|
| A | Senior | First on cash, last on loss. Lowest yield. |
| B | Mezzanine / Land Equity | Subordinated to A; absorbs loss before A. |
| C | Preferred Equity | First-loss, highest yield. Zero-coupon land bonds accrete here. |
Each period, available cash flows top-down: Senior is served first, then Mezzanine, then Preferred. Losses flow bottom-up. Because the waterfall is deterministic code, the on-chain result can be verified against an independent off-chain reference model line for line.
What protects the senior tranche?
Live covenant enforcement. The structure tracks DSCR (debt-service coverage) and LTV, and when a coverage threshold is breached it fires a cash-trap — diverting distributions that would otherwise reach junior tranches into a reserve, or into turbo-amortization of the senior balance. The trigger is mechanical, so it cannot be discretionarily waived.
What is a zero-coupon land bond?
A land-collateralized instrument that pays no periodic coupon and instead accretes to face value over its term. It is modeled with integer accretion math and sits in the subordinated layer, letting a deal monetize land equity without adding periodic debt service that would pressure DSCR.