Forced Withdrawal and Evacuation Mode

Term Structure is a non-custodial protocol. Whenever users experience censorship, they can make use of forced withdrawals to perform the withdrawal process directly on the zkTrue-up contract. Once the forced withdrawal is triggered, the sequencer must execute the request within the minimum response time. In case the request is not fulfilled, users can withdraw their funds under evacuation mode directly from the L1 contract.

Forced Withdrawal

Users can make use of forced withdrawals to trigger the withdrawal process directly on the zkTrue-up smart contract. The forced withdrawal transaction must be executed by the sequencer within the minimum response time: once initiated, the sequencer has 14 days to complete the user’s requests.

Forced withdrawal is a three-step withdrawal process:

Step 1 - Forced Withdrawal Request

Users trigger the forced withdrawal request directly on the zkTrue-up smart contract.

Step 2 - Forced Withdrawal Execution

After the forced withdrawal request from step 1 is successfully executed, the Operator will send the forced withdrawal request to the Sequencer according to the event sent by the previous step.

Step 3 - Forced Withdrawal Confirmation

After the transaction of forced withdrawal is committed and verified on Ethereum, the user can withdraw their assets from the zkTrue-up smart contract through the withdrawal function.

Evacuation Mode

When the system shuts down for a period of time, users can initiate evacuation mode via zkTrue-up after the Sequencer has not processed a forced withdrawal within the minimum response time. Once the evacuation mode is activated, no transaction other than withdrawals can be processed. Users can withdraw funds through smart contracts via publishing their own zero-knowledge proofs verifying that they hold the assets they want to withdraw.