XLS-66 · XRPL Ledger · Default Protection

The default protection layer for institutional lending on XRPL.

When a borrower defaults on an XLS-66 vault, Ward Protocol defines exactly what happens. Nine on-ledger checks. No oracle. No human judgment. No Ward signature — ever.

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WARD · v0.2.2 · ALTNETLIVE

Core Invariant

ward_signed = False

F·01Vault RegistrationLIVE
F·02Credential IssuanceLIVE
F·03Policy PurchaseLIVE
F·04Default DetectionLIVE
F·05Claim ValidationLIVE
F·06Escrow SettlementLIVE

146/146Tests

FALSEward_signed

5Altnet Txns

The problem

What happens when the borrower doesn't pay?

Every institution deploying capital into XLS-66 lending vaults will eventually ask this question. Today, there is no standard answer. Every protocol builds their own — or ignores the risk entirely.

Ward Protocol is the answer. The open specification that defines exactly what happens on default. Deterministic. Auditable. On-chain.

Ward Protocol is that missing layer.

How it works

Six steps. Fully on-chain.

No off-chain oracle. No human judgment. Pure XRPL ledger state at every step.

Vault Registration

Institution registers its XLS-66 vault. Ward confirms the vault object exists on the XRPL ledger via account_objects.

Policy Purchase

Depositor acquires coverage via a non-transferable XLS-20 NFT (taxon 281). Ward returns an unsigned NFTokenMint. Institution signs. XRPL settles.

Vault Monitoring

Ward monitors vault health via WebSocket. Events are hints — ledger state is always truth. 3-ledger confirmation window eliminates manipulation.

Default Detection

Health ratio below 1.5 confirmed across 3 consecutive ledger closes (~12 seconds). Single-block manipulation is structurally impossible.

Claim Validation

Nine deterministic checks run against live XRPL ledger state. No oracle. No human judgment. Every check is verifiable on-chain.

Escrow Settlement

Ward returns an unsigned EscrowCreate with PREIMAGE-SHA-256 (48-hour window). Institution signs. XRPL settles. ward_signed=False — always.

The core invariant

ward_signed = False — always

Ward constructs unsigned transactions. Institutions sign. XRPL settles. Ward is never a counterparty.

# Ward NEVER does this:
await submit_and_wait(tx, client, ward_wallet)  # Ward has no wallet

# Ward ALWAYS does this:
return UnsignedTransaction(
    tx_dict=tx.to_dict(),
    ward_signed=False
)
# Institution signs and submits with their own wallet

The gold line holds. This invariant is enforced at the architecture level across every module. No Ward class stores a wallet. No Ward method signs a transaction.

Licensing

One specification. Three tiers.

Ward Protocol is pre-mainnet. All tier pricing is confirmed at XLS-66 mainnet launch. Reach out early to discuss your use case and secure pilot access.

⏳

Pricing coming soon — announced at XLS-66 mainnet launch. Contact us for early institutional access.

Starter

Coming Soon

For builders and developers

Ward Protocol SDK access
Python, TypeScript, Java examples
Altnet integration out of the box
XRPLF Discussion #474
Email support

Express Interest →

What the ecosystem is saying

Unprompted commentary from builders and observers in the XRPL ecosystem.

“The protocol is ahead of the compliance tooling.”

XRPL Zone Paris Working Group

April 14, 2026

“Risks become more programmatic. Observable. Quantifiable. That kind of visibility is what larger institutions look for.”

Asheesh Birla, CEO Evernorth

XRPL Commons · April 2026

“XLS-66 + Ward = risk-managed credit infrastructure institutions need before deploying serious capital.”

XRP Cipher Podcast

April 2026

“In Ward We Trust.”

XRPL Community

April 2026

These are independent comments, not formal endorsements.

Current status

Live on XRPL Altnet

Metric	Value
SDK Version	v0.2.2
Unit Tests	146/146 passing
On-Chain Transactions	5 confirmed (XRPL Altnet)
External Dependencies	0 — pure XRPL
Ward Holds Keys	Never
Authoritative State	XRPL Ledger
Production Code	2,148 lines
XRPLF Standards	XLS-66 · XLS-70 · XLS-80 · XLS-20

Step	Transaction Type	Proves	Hash
1 — Premium Payment	Payment	Premium to pool	D541B6A2...783169
2 — Policy NFT Mint	NFTokenMint	Coverage issued (taxon 281)	B323815A...148CDF
3 — Escrow Create	EscrowCreate	Funds locked PREIMAGE-SHA-256	9BB570DB...B0A3
4 — Escrow Finish	EscrowFinish	Payout released with preimage	E65C35A5...A3088
5 — Policy NFT Burn	NFTokenBurn	Replay protection confirmed	A5A0652C...464D8

Ready to add default protection to your vault?

Ward Protocol is free to implement. The specification is open. The rails are yours.

View Specification →Contact Us