XFT PROOF SYSTEM

sequenceDiagram participant U as User participant B as Bank participant BC as Blockchain %%{init: {'theme': 'dark', 'themeVariables': { 'mainBkg': '#111', 'nodeBkg': '#222', 'nodeTextColor': '#fff', 'lineColor': '#fff', 'textColor': '#fff', 'noteTextColor': '#fff', 'noteBkgColor': '#333' }}}%% U->>B: Deposit Funds B->>BC: Record Deposit Transaction BC-->>BC: Create Smart Contract Note over BC: Enforce 100% Reserve Ratio alt Lending Attempt B->>BC: Attempt to Lend Deposits BC-->>B: Reject - Violates Reserve Rule end U->>B: Withdrawal Request B->>BC: Verify Funds Available BC-->>B: Confirm Availability B->>U: Release Funds

flowchart TD %%{init: {'theme': 'dark', 'themeVariables': { 'mainBkg': '#111', 'nodeBkg': '#222', 'nodeTextColor': '#fff', 'lineColor': '#fff', 'textColor': '#fff', 'clusterBkg': '#333' }}}%% A[Deposit Detection] --> B1{Initial Validation} B1 -->|Validate| B2{Balance & Reserve Check} B2 -->|Fail| D[Reject Transaction] B2 -->|Pass| C1[ZK Proof Pipeline] subgraph Validation Layer V1[Time Lock Status] V2[Queue Position] V3[Withdrawal Limits] V4[1:1 Reserve Check] V1 & V2 & V3 & V4 --> B2 end subgraph ZK Proof Components C1 -->|Generate| C2[Proof Generation] C2 --> C3{Proof Validation} C3 -->|Verify| P1[VaultBalance = ∑UserBalances] C3 -->|Verify| P2[No Negative Balances] C3 -->|Verify| P3[ΔBalance = Deposit Amount] end P1 & P2 & P3 -->|All Pass| E1[Block Pipeline] P1 & P2 & P3 -->|Any Fail| D subgraph Block Creation E1 --> E2[Generate Block Hash] E2 --> E3[Finalize Block] E3 --> E4[Commit to Chain] end subgraph Failure Handlers D -->|Error Code| F1[Insufficient Funds] D -->|Error Code| F2[Invalid Proof] D -->|Error Code| F3[Reserve Violation] end