KYD Labs is a ticketing integrator that pays live event venue upfront advances in exchange for exclusive, multi-year service agreements. These agreements generate recurring service fee revenue of 20-30% on ticket face value over terms of 3-5 years. Because KYD controls the payment infrastructure, service fees are intercepted at the point of sale and never pass through the venues account, eliminating reliance on venue solvency for repayment. The predictable and contractually bound nature of these cash flows makes them suitable collateral for structured private credit. The margin on these agreements is high enough to offer attractive yields to external capital while preserving meaningful revenue for KYD which can also used for incentives or token buybacks.
TIX Credit Protocol is the credit infrastructure layer that finances these advances with external capital. It originates venue credit facilities, pools them to diversify risk and liquidity and tokenizes pool positions for onchain distribution.
The result is a yield instrument backed by high-margin cashflows from live event venues offering target blended yields of 10-15% APY which are uncorrelated to crypto and other risk assets.
The underlying asset in form of venue advances are long-duration, in itself illiquid and venue-specific. Service agreements have 3–4 year terms with advances underwritten that they break-even at approximately 12-18 months. There is no secondary market for individual venue credit exposures. Each facility varies in size and revenue profile, although contract terms are progressively standardized. The onchain capital base expects the opposite: the ability to enter and exit positions fluidly and to use them as collateral or building blocks within broader strategies. The structuring problem is bridging this gap and optimizing between liquidity and yield.
Tokenizing future receivables against a venue advance does not make it liquid in itself. TIX Credit solves this by pooling multiple advances, staggering their amortizations schedules, maintaining a liquidity buffer and engineering clear redemption mechanics that give investors a credible exit without unwinding performing deals.
An investor deposits stablecoins into the pool and receives pool token representing their proportional claim on NAV. The investor owns a share of the pool and is not counterparty to individual deals. The pool deploys capital into venue advances as deals are originated and collects service fee cashflows as repayment. The pool manages deal deployment, amortization and redeployment.
Capital not deployed in venue deals sits in a liquidity buffer earning a base yield in T-bills, yield-bearing stablecoins or other liquid low-risk assets and can be redeployed for new deals.
Capital cycles through three states
| Undeployed | Liquidity buffer. Held in cash equivalents earning base yield (4–5%). Available for redemptions or redeployment. This is the pool's primary liquidity source. |
|---|---|
| Committed | Service agreement is signed but advance not yet funded. Capital is reserved and excluded from the liquidity buffer. Cannot be used for redemptions. Protects venue deals from being disrupted by interim withdrawal activity. |
| Deployed | Advance has been funded to the venue. Capital is earning deal yield (12–20%) through service fee cashflows. Illiquid until repaid through amortization. |
Each venue advance is structured as a bilateral credit facility
| Borrower | KYD Labs Inc. (ticketing platform). In the future also other integrators. |
|---|---|
| Use of funds | Advances to venues in exchange for exclusive ticketing rights and service fee origination |
| Typical advance | Club level: $500k - $2.0M per venue (club level). |
| Arena level TBD. | |
| Repayment source | Service fees (20-30% of ticket face value) |
| Repayment process | Collected directly via KYD payment rails. Service fees are intercepted and do not reach venue. Enables repayment without solvency risk of venue. |
| Contract term | Club level: 36 months - 48 months |
| Arena level TBD. |
Automatic extension clause: If cumulative ticket sales have not reached the target sales, service agreement extends |
The following terms state how capital enters, earns and exits the pool.