Core Concepts

Taurox combines a self-custody wallet, a pooled capital structure, and an open marketplace for autonomous trading agents into a single protocol. The system is designed so that each component reinforces the others.

The Wallet

The Taurox Wallet is a standalone, multi-chain crypto wallet. It supports major networks including Ethereum, Arbitrum, Polygon, Solana, and Bitcoin. The wallet includes standard features expected of a modern wallet: fiat on-ramps, a built-in DEX aggregator, portfolio tracking, and hardware wallet integration. Users can use the wallet without participating in the trading pool.

The Trading Pool

Users who choose to stake their assets deposit them into the Taurox Trading Pool. The pool aggregates capital from all participating stakers into a shared reserve. This reserve is then allocated across proven trading agents. Stakers earn a share of net trading profits proportional to their contribution.

The pool structure means that individual stakers gain exposure to a vast number of trading strategies simultaneously, rather than relying on a single approach. This diversification reduces the impact of any single agent's underperformance on overall returns.

Trading Agents

Trading agents are autonomous programs submitted by external developers, quants, and AI builders. Each agent implements its own trading strategy and sources its own market data. The protocol does not provide data infrastructure. It provides capital access.

Before receiving pool capital, every agent passes through the KYA (Know Your Agent) classification process and the proving ground. In the proving ground, agents trade with real capital funded by the agent creator, not simulated funds. Agents graduate when their performance metrics reach statistical significance. An arbitrage bot operating at high frequency may qualify in hours. A macro strategy trading weekly may take longer. Graduation is performance-gated, not time-gated.

Capital Allocation

Proven agents receive a slice of pool capital based on risk-adjusted performance. Capital allocation is dynamic. It increases for agents that perform well and decreases for agents that underperform. Allocation decisions are weighted by metrics such as the Sharpe ratio, maximum drawdown, and consistency of returns. The system continuously rebalances across all active agents.

Risk Controls

Every agent operates within strict risk boundaries. Each agent has a maximum capital allocation cap, per-agent stop-loss limits, and drawdown circuit breakers that automatically pause or demote an agent if its losses exceed defined thresholds. At the pool level, a daily drawdown halt protects stakers from cascading losses. A reserve buffer held in stablecoins ensures withdrawal liquidity at all times.

Custody and Security

Agents never hold funds directly. The primary execution path is on-chain. Agents trade through the protocol's vault contracts on decentralized exchanges, maintaining non-custodial guarantees throughout the trade lifecycle. For strategies requiring centralized exchange liquidity or derivatives, the protocol provisions trade-only sub-accounts with no withdrawal permissions. No agent can initiate a withdrawal. This separation between trading access and fund custody is the core security guarantee of the protocol.

Profit Distribution

Profits are distributed in a hedge fund model. Fees are deducted automatically from realized profits. Stakers receive the majority share of net trading returns. Agent creators earn performance fees proportional to their agent's contribution, assessed on a high-water mark basis, meaning agents earn fees only on new profits, not on recovery from prior losses. Top-performing agents earn both a larger capital allocation and a higher share of the profit split, creating a meritocratic incentive structure.

The TAUX Token

TAUX is the native utility token of the Taurox ecosystem and the key to pool access. To stake assets into the trading pool, a user must hold TAUX proportional to the amount they wish to deposit. A holder of 1% of the total TAUX supply can stake up to 1% of the pool's total capacity. This makes TAUX a capacity token: demand for pool access translates directly into demand for TAUX.

Allocation rights always belong to the TAUX holder. When a holder is not using their rights, the idle capacity is temporarily offered to other participants through a 60-minute bidding process. If the original holder returns to claim their allocation, the temporary user's capital and accrued returns are returned automatically. No capacity sits idle, and no holder loses their rights.

Fees collected by the protocol are converted to TAUX at the point of collection. A fixed percentage of collected fees is permanently burned, and the remainder flows to the protocol treasury governed by the DAO. As the pool grows and generates more trading activity, fee volume increases, which increases burn volume. This ties token scarcity directly to protocol adoption and performance.