> For the complete documentation index, see [llms.txt](https://docs.syndromics.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.syndromics.xyz/compliance/model.md).

# Compliance model

{% hint style="info" %}
This section describes how compliance is enforced in the protocol. It is not legal advice.
{% endhint %}

## Principle

The protocol is non-custodial, and compliance is enforced at the **protocol boundary**, because the assets themselves carry no on-chain restrictions.

Stock Tokens are plain ERC-20s. Robinhood enforces eligibility at its interface and at KYC'd issuance and redemption. Anyone can hold the tokens on-chain, so a protocol that accepts them as collateral must decide for itself who may participate. Syndromics makes that decision at every entry point through the [eligibility registry](/architecture/eligibility.md).

## What is enforced

| Boundary                    | Rule                                                               |
| --------------------------- | ------------------------------------------------------------------ |
| Borrowing                   | `BORROWER` attestation: KYC'd, non-restricted jurisdiction         |
| Lending                     | `LENDER_PROFESSIONAL`; `LENDER_RETAIL` where permitted             |
| Receiving collateral        | `LIQUIDATOR` attestation for auction buyers and in-kind recipients |
| Transferring a position NFT | Recipient must hold a lender attestation                           |
| Front-end access            | Geo-fencing for restricted jurisdictions                           |

## How it is enforced

1. **Attestations, not allowlists.** A KYC provider issues an EAS attestation to the wallet after identity, sanctions and residency checks. The attestation carries role, jurisdiction class and expiry, and no personal data.
2. **Continuous re-screening.** Attestations expire and are renewed; revocation is immediate.
3. **Two screening layers.** The KYC provider screens at attestation and renewal; the sequencer applies its own sanctions screening (TRM Labs is integrated on the chain).
4. **Modular policy.** The registry is an adapter, so the policy engine (EAS, ONCHAINID, Chainlink ACE) and the accepted issuers can change through the timelock without redeploying the core. Rules can tighten quickly if a regulator requires it.
5. **Permissionless reads.** Every view function stays open so that explorers and aggregators can index the protocol.

## What the protocol does not do

* It never holds user funds outside the escrow contracts.
* It never converts fiat.
* It never takes discretionary decisions about a loan. Origination, repayment, refinance and liquidation are all rule-based and triggerable by anyone eligible.

These properties matter for the money-transmission and "managerial discretion" analyses in [Jurisdictions](/compliance/jurisdictions.md).

## Privacy

Personal data lives with the KYC provider and never touches the chain. The optional zero-knowledge credential path lets a wallet prove eligibility without revealing which provider checked it or any underlying attribute.

## Relationship to the issuer's rules

Syndromics mirrors the Stock Token eligibility list for borrowers. If Robinhood tightens its list, the attestation issuer's rules follow. If Stock Tokens later gain on-chain transfer hooks (ERC-7943 or ERC-3643), the escrow contract will honour them and will itself be allowlisted. See [Collateral roadmap](/collateral-and-assets/future-collateral.md).


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