Patterns for providers
Clearing and Liquidity Providers may need standing rules for their M1 inventory: withdrawal delays, rate limits, approved destinations and recovery paths. Covenants can express those controls without turning M0/M1 into a retail savings product.
Inventory controls
| Control | Primitive | Effect |
|---|---|---|
| Staged withdrawal | CTV | inventory first moves to a staging output whose next spend is committed to a template |
| Review window | CSV | a relative timelock during which a recovery key can return the funds |
| Standing policy | recursive covenants (output introspection) | the policy is preserved on change outputs; periodic limits can be imposed |
A typical withdrawal path: hot key spends inventory to a CTV-constrained staging output → the
staging output can only be spent to the approved destination after a CSV delay, or back to
the recovery path at any time during that window → change outputs re-create the same covenant.
Scope
This is an operational-security pattern for professional infrastructure. It does not protect the external BTC destroyed to acquire inventory and does not make M1 redeemable.
Primitives: CTV · CSV · output introspection
See also: Script & opcodes · Roles