How SWATH works, one step at a time, with the screen where each step happens.
An income right is a fixed-term share of fees a source already earns: the SOL side of a Meteora DAMM v2 position's fees, or a share of a pump.fun coin's creator fees. SWATH pays the provider a price from the treasury and receives that income in the right's source vault for the term.
On Meteora the provider keeps the LP principal and the non-SOL fee side, and gets the position NFT back at term end; on pump.fun the provider keeps the rest of the fee split and the coin. A right becomes Acquired only in the transaction that verified on chain that its income routes to the source vault.
Only SOL that reached a source vault counts. Every sweep runs the same order, per right:
Recovered cost is not a return. A right that has sent back part of its price has recovered that part, not returned it; it earns surplus only past its cost line.
Received less than its costPartly recovered
At term end the shortfall is a realized loss; later surplus covers that loss before anything is distributable.
Received more than its costPast the cost line
The cost goes back to the treasury; only what is past the cost line is realized surplus.
At each settlement () the period's distributable is split four ways. Anyone can send the settlement; the amounts come from the ledger alone, and every period writes a record account on chain.
When no $SWATH is deposited during a period, the holder share is carried into the next settlement.
Deposit $SWATH in the holder vault to share the 50% holder allocation. A deposit counts from the next period, and each period is shared by stake-seconds: amount times time deposited.
A withdrawal returns your $SWATH and ends accrual from that moment; what accrued until then, including the part of the current period, stays claimable. $SWATH held in a wallet outside the vault does not take part in distributions.
Each settled period adds to your accrued balance. A claim pays it from the holder vault to your wallet in SOL; an unclaimed balance stays in your stake account until you claim it.
Claim once the balance reaches 0.001 SOL, so the network fee stays small next to the amount.
20% of each settlement's distributable moves from the buyback vault to the dev wallet: $SWATH bought on the market in orders of up to 0.5 SOL and held in the dev wallet.
Each round shows its buy transaction, the withdrawal that funded it, the SOL spent and the $SWATH bought; the Buyback ledger adds them up next to the dev wallet's balance read from chain.
Each deposit, withdrawal and claim is one transaction your wallet signs and pays the network fee for; the server assembles it unsigned and adds no signature. Before you sign, the app lists the transaction's instructions, and your wallet shows these instruction names: settle_epoch for each settlement still due, open_user on your first deposit (it creates your stake account and holds its rent), then stake, unstake or claim_rewards.
The holder vault pays out only through a claim, to the depositor's own wallet, and deposited $SWATH leaves only through a withdrawal, to its owner. The admin key can change the split and the payout wallets for later settlements; each change is an on-chain event shown in Treasury, and amounts already accrued stay as they are. $SWATH trades freely and its price moves with the market. Income depends on what each right actually sends, and a fault in the program or in a source venue would affect the funds in its vaults.
Proof lists every program address in full and the latest transactions of each flow, each linked to Solscan. Cashflows recomputes each settlement from its input transactions, and the same records are public JSON at /api/v1/proof.