Factor is built on a modular, upgradeable, oracle-verified architecture deployed on Avalanche. The protocol connects real-world receivables, on-chain financing pools, underwriter staking, fractionalized pool ownership, and deterministic settlement into a secure and transparent system.

The design emphasizes trust minimization, data integrity, and automated enforcement, ensuring that every financed receivable is real, verified, and performs as expected.

10.1 Architectural Overview

Factor uses five core smart-contract modules:

1. HyperFactor Token (ERC-3643)
2. Receivable NFTs (ERC-721)
3. Pool Factory & Fractioning Module
4. Staking & Automatic Funding Contract
5. Fractional Pool Tokens (ERC-3643)

Verification flows are powered by:

• Chainlink Proof-of-Reserves (PoR)
• Chainlink Proof-of-Performance (PoP)

The architecture makes Factor one of the first RWA protocols where both asset existence and real-world repayment are cryptographically validated.

10.2 HyperFactor Token (ERC-3643)

The $FACTOR token implements ERC-3643, enabling:

• Permission-based access control
• Underwriter onboarding governance