Allocator Incentives and Risk

• Carry Model: Allocators earn external spread when selling 0xUSD rich and can farm stablecoin yields in pockets. They pay borrow fees (borrowFeeBps) when repaying. Credit ceilings and daily caps bound exposure and issuance velocity.

• Inventory Obligation: Serving referred flow requires maintaining reservedZeroX and pocket liquidity; failing to pre-provision pushes users into engine minting on the issuance path (still seamless for users) but leaves allocators exposed to future redemption-driven debt scaling.

• Strategy Choice: Pockets should favor low-volatility, short-exit-time venues; allowances and buffers must be sized so UCE pulls settle promptly.