Protocol Overview

The CMX Protocol is a comprehensive capital markets blockchain infrastructure providing enterprise-grade smart contracts for tokenized securities, asset management, trading, and regulatory compliance. Built with regulatory compliance and institutional-grade security at its core.

Architecture Overview

The CMX Protocol uses a diamond-based architecture (EIP-2535) for maximum upgradability and modularity while maintaining security and regulatory compliance.

Core Components

🏛️ Diamond Architecture - Modular, upgradeable smart contracts
🔐 Access Management - Enterprise-grade permission system
📋 Attestation System - Identity verification and compliance
💎 Asset Tokenization - Securities and RWA tokenization
📊 Trading Markets - Multiple trading venue types
⚖️ Governance - Corporate governance and voting mechanisms
📚 Document Management - Secure document storage and verification
💰 Payment Systems - Gas abstraction and billing
📖 Accounting Ledgers - Double-entry bookkeeping
🏦 Fund Management - Investment fund operations

Key Features

Regulatory Compliance First

Built-in KYC/AML - Integrated identity verification
Securities Law Compliance - Rule 506(b), 506(c), Rule 701 support
Multi-jurisdictional - Configurable for different regulatory environments
Audit Trails - Complete transaction history for regulatory reporting

Enterprise Security

Diamond Architecture - Secure upgradeable contracts
Role-based Access - Granular permission system
Multi-signature - Enterprise governance controls
Security-First Design - Built with security best practices

Capital Markets Focus

Securities Tokenization - Equity, debt, and hybrid instruments
Investment Funds - Mutual funds, hedge funds, ETFs
Trading Infrastructure - Order books, auctions, OTC markets
Settlement Systems - Automated clearing and settlement

For detailed information about our lot-based token implementation, see ERC-7752: Lot-Based Tokens.

Smart Contract Modules

Core Infrastructure

Diamond Factories - Factory contracts for creating diamond-based assets
Access Management - Unified access control system
Registries - Central contract and facet registration

Compliance & Identity

Attestation System - Decentralized identity verification
KYC/AML Framework - Regulatory compliance tools
Document Registry - Secure document management

Asset Management

Tokenization Framework - Real-world asset tokenization
Share Classes - Equity instrument management
Fund Management - Investment fund operations

Trading & Markets

Order Book Markets - Traditional exchange-style trading
Auction Markets - Price discovery mechanisms
OTC Markets - Over-the-counter trading
Settlement - Automated trade settlement

Governance & Operations

Corporate Governance - Board and shareholder decision making
Accounting Ledgers - Double-entry bookkeeping
Subscription Billing - Payment and subscription management

Getting Started

For Developers

Prerequisites
- Foundry development environment
- Node.js 18+ and npm/yarn
- Basic understanding of Solidity and Diamond patterns

Installation

git clone https://github.com/capsign/protocol.git
cd protocol
forge install

Development Setup

# Copy environment template
cp .env.example .env

# Install dependencies
npm install

# Run tests
forge test

For Integrators

Use the CMX Protocol SDK for easy integration:

npm install @capsign/sdk

import { CMXClient, Network } from "@capsign/sdk";

const client = new CMXClient({
  network: Network.BASE_SEPOLIA,
  privateKey: process.env.PRIVATE_KEY,
});

// Create a tokenized asset
const asset = await client.assets.create({
  name: "Example Corp Class A",
  symbol: "EXMP-A",
  totalShares: 1000000,
});

Security Considerations

Security Status

Active Development - Contracts are in active development and testing
Internal Review - Ongoing internal security review and testing
Future Audits - Professional security audits planned before mainnet deployment

Best Practices

All privileged functions use multi-signature requirements
Role-based access control with time-delayed administrative actions
Emergency pause mechanisms for critical functions
Comprehensive event logging for transparency

Deployment Networks

Testnets

Base Sepolia - Primary testnet deployment
Ethereum Sepolia - Cross-chain testing

Mainnets

Base Mainnet - Primary production deployment
Ethereum Mainnet - Cross-chain bridge deployment

Documentation Structure

Smart Contracts - Detailed contract documentation
Architecture - System design and patterns
Deployment Guide - How to deploy the protocol
Integration Guide - SDK and API usage
Governance - Protocol governance mechanisms
Security - Security model and considerations

Developer Resources

API Reference - Complete API documentation
SDK Documentation - TypeScript SDK guide
Testing Guide - How to test integrations
Examples - Code examples and tutorials

Compliance Documentation

Regulatory Framework - Regulatory compliance approach
KYC/AML Implementation - Identity verification system
Securities Law - Securities regulation compliance

License

Business Source License 1.1 (BUSL-1.1) - See LICENSE for details.

Support

Documentation: docs.capsign.com
Technical Support: [email protected]
Discord: Join our Discord
GitHub Issues: Report issues