Upon deposit of non-X28 tokens, a fixed slippage adjustment is applied to their dollar value prior to allocation.
This adjustment models expected execution impact when converting the asset into X28 for buybacks and ensures conservative accounting of buyback value.
**ETH Deposits**\
A 5% adjustment is applied to the notional dollar value.
**TitanX Deposits**\
A 2.8% adjustment is applied to the notional dollar value.
**X28 Deposits**\
No valuation adjustment is applied.
Adjustment levels are calibrated to estimated execution impact under expected market conditions.
***
Entry Distributions & Value Routing
Horizon uses deterministic routing to ensure every deposit strengthens value, deepens liquidity, and compounds growth over time.
All deposits follow enforced allocation rules designed to maximize:
* HORIZON buy pressure
* Protocol-owned liquidity (POL) growth
* Multi-asset hyper-deflation
* Operational sustainability via Treasury funding
Execution uses best-route swaps/transforms to reduce market impact, but allocation percentages are enforced.
***
Master Allocation Table
Deposit Type
HORIZON Buy & Burn
NOVA/TitanX POL
HORIZON/X28 POL
HORIZON/USDx POL
NOVA Burn
Treasury
ETH
32%
10%
10%
32%
8%
8%
TitanX
37%
10%
37%
0%
8%
8%
X28
50%
0%
42%
0%
0%
8%
Important: X28 deposits never sell down into TitanX.
***
ETH Deposit Path
#### Ethereum Entry Distribution
Out of 100% ETH deposited:
* 32% → HORIZON Buy & Burn\
ETH → TitanX → X28 → Buy & Burn HORIZON
* 10% → NOVA/TitanX farm (POL)\
ETH → TitanX + NOVA acquisition → NOVA/TitanX LP
* 10% → HORIZON/X28 farm (POL)\
ETH → TitanX → X28 → HORIZON/X28 LP
* 32% → HORIZON/USDx farm (POL)\
ETH → USDx → HORIZON/USDx LP
* 8% → Buy NOVA & burn permanently
* 8% → Treasury
#### Outcome
* Continuous buy pressure on HORIZON through buybacks
* Deepening liquidity across both core farms (NOVA/TitanX and HORIZON/X28)
* Permanent supply reduction in NOVA through burns
* Treasury sustains incentives and longevity
***
TitanX Deposit Path
#### TitanX Entry Distribution
Out of 100% TitanX deposited:
* 64% → HORIZON Buy & Burn\
TitanX → X28 → Buy & Burn HORIZON
* 10% → NOVA/TitanX farm (POL)\
TitanX paired with NOVA (acquired as required) → NOVA/TitanX LP
* 10% → HORIZON/X28 farm (POL)\
TitanX → X28 paired with HORIZON → HORIZON/X28 LP
* 8% → NOVA burn
* 8% → Treasury
***
X28 Deposit Path
#### X28 Entry Distribution
X28 is treated as a base asset within Horizon’s value system.\
As a result, X28 deposits never sell down into TitanX to fund NOVA/TitanX liquidity.
Out of 100% X28 deposited:
* 64% → HORIZON Buy & Burn\
X28 → Buy & Burn HORIZON
* 28% → HORIZON/X28 farm (POL)\
X28 paired with HORIZON → HORIZON/X28 LP
* 8% → Treasury
#### Outcome
* Maximum direct buy & burn pressure on HORIZON
* Deepening HORIZON/X28 liquidity
***
HORIZON Deposit Path
When creating a miner using HORIZON, users must additionally pay an ETH fee.
#### ETH Fee Routing
All ETH fees follow the standard ETH Deposit Path and are treated identically to ETH miner deposits:
* 64% → HORIZON Buy & Burn
* 10% → NOVA/TitanX POL
* 10% → HORIZON/X28 POL
* 8% → NOVA burn
* 8% → Treasury
#### HORIZON Principal Retention
At miner maturity:
* The original HORIZON deposit together with all accrued HORIZON, becomes claimable by the user.
#### Outcome
* External buy pressure through ETH fee inflows
* Reduced sell pressure via principal retention mechanics
***
Protocol-Owned Liquidity & Farm Integration
All liquidity deployed by Horizon is treated as protocol-owned liquidity (POL).
POL is owned by the protocol and is used to:
* deepen liquidity
* capture yield and trading fees
* compound value routing into buybacks over time
* POL is **not withdrawable**
#### Reward Routing
All rewards earned by POL follow a fixed flow:
100% of farm rewards → converted into HORIZON buy pressure and supply reduction
Rewards include:
* LP trading fees
* NOVA farm rewards
#### NOVA Reward Handling
All NOVA rewards are processed as follows:
1. NOVA → swapped into TitanX
2. TitanX → transformed into X28, using best execution:
* If the TitanX:X28 ratio is 1:1, TitanX is transformed directly into X28.
* If the TitanX:X28 ratio is below 1:1, TitanX buys discounted X28 on-market, strengthening the buyback effect.
During transformation, 50% of all TitanX is permanently burned.
The remaining 50% is used to buy X28 from the TITANX/X28 liquidity pool, and 100% of the acquired X28 is permanently burned.
#### Fee Handling
* HORIZON/NOVA LP fees are permanently burned.
* X28/TitanX LP fees are routed into Buy & Burn to purchase and burn HORIZON/NOVA.
This creates a permanent secondary inflow into the Buy & Burn that compounds as POL grows.
#### Outcome
* A compounding buyback stream that scales with protocol usage
***
Treasury
The Treasury maintains operational continuity and resilience under adverse conditions. It is funded through protocol revenue, buyback allocations, and a share of mining inputs.
Holdings may include assets appropriate for execution, liquidity operations, and reserve preservation. These may include Ethereum, wrapped Bitcoin, and Horizon acquired through protocol buybacks pending incentive redistribution.
#### Mandate
Treasury balances serve three defined functions.
**Protocol Operations & Ecosystem Development**
Allocation toward independent audits, ongoing security assessments, infrastructure costs, development, monitoring systems, integrations, analytics, and external services required to maintain protocol reliability, usability, transparency, and long-term operational continuity.
**Risk Buffering**
Capital reserves designated for predefined adverse scenarios, including oracle disruption, emergency pause conditions, and severe market dislocations. Deployment under this mandate is limited to stabilization actions.
**Incentive Sustainability**
Redistribution of Treasury-held HORIZON into defined incentive programs supporting liquidity formation and borrowing markets. Each allocation specifies a token amount and duration. Redistribution occurs within existing supply constraints and does not introduce new issuance.
#### Design Framework
Incentive allocations specify a fixed token amount and defined duration and are disclosed in advance. Treasury asset management prioritizes liquidity, capital preservation, and protocol continuity.
The Treasury is confined to its stated mandates and cannot alter supply limits, emission rates, or protocol rules.
Horizon’s economic integrity is anchored in fixed supply, deterministic emissions, and enforced on-chain logic.
The following diagram illustrates how protocol revenue, liquidity, and yield move through the system.
***
Protocol Value Flow
Legend
* Green = Entry points
* White = Deterministic routing
* Red = Irreversible burns
* % = Contract-enforced ratios
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