Clearing Condition
Effective Contribution and Reachable Demand
For address i, let z_i be its cumulative deposit — multiple deposits from the same address are aggregated before anything else happens. Its effective contribution is bounded by both its own deposit and the global cap:
0 ≤ e_i ≤ min( z_i , A_max )
reachable = Σ_i min( z_i , A_max )
This is the quantity the clearing test uses — not total deposits. The distinction is the entire point of the cap. Capital sitting above A_max in any address contributes nothing to reachable.
The Test
Evaluated once, at the close of the window.
CLEAR reachable ≥ V_target ⟹ proceed to waterfilling
FAIL reachable < V_target ⟹ e_i = 0, refund_i = z_i ∀i, no LP
Failure Classification
A failed round is classified into one of two disjoint causes for user-facing reporting. Both resolve identically — full USDG refund, no on-chain state beyond that — but they mean very different things to a creator.
| Class | Condition | Interpretation |
|---|---|---|
| MONEY | Aggregate deposits, uncapped, fall short of V_target |
Insufficient total capital committed. |
| SEATS | Aggregate deposits would clear if uncapped, but too few unique addresses exist beneath the cap to reach reachable ≥ V_target |
Sufficient capital, insufficient distribution. |
Why SEATS exists
SEATS is what makes the 2% cap a genuine distribution constraint rather than a cosmetic one. A small number of large depositors cannot overfund their way past it, because only A_max of any address's deposit is ever counted toward reachable. If the people are not there, the token does not launch — regardless of how much money is.
The Minimum Viable Participant Count
Because reachable is capped per address, every round has a hard floor on how many distinct addresses must participate:
N_min = ⌈ V_target / A_max ⌉ = ⌈ 3,471 / 138.84 ⌉ = 25
At FDV 6,942 USDG and R_raise = 50%. Twenty-four maximally-funded addresses cannot clear that round; twenty-five clear it with zero slack.
For Creators
Treat N_min as the real launch requirement. Raising the target raises it linearly, and no amount of committed capital substitutes for it.