Roles and Responsibilities Summary

To clarify the separation of concerns, below is a summary of the roles and responsibilities of Helios versus the MIDL network:

• Helios (Lending Application Layer): Responsible for the smart contract logic that enables BTC-denominated lending and borrowing. Defines how loans are initiated, how collateral and interest are managed, and how liquidations occur. Helios contracts run on the MIDL execution layer and rely on its security. Helios governance and development focus on financial parameters and product features – not on running nodes or validators. Helios does not custody user funds; it only controls funds through programmed rules in contracts (with user consent required for any movement). However, Helios may operate a validator node of MIDL to facilitate smooth operation of Helios products.

• MIDL Network (Consensus & Custody Layer): Responsible for block production, transaction ordering, and contract execution via a network of DPoS validators. Independently selects and rotates validators based on staked tokens, without Helios’s involvement. Operates the TSS custody system that actually holds BTC deposits in multi-signature vaults, requiring validator quorums (plus user signature) to authorize transfers. Enforces security through economic incentives: validators must stake BTC/MIDL and can be slashed for misbehavior. Provides finality by anchoring Helios state changes into Bitcoin blocks, ensuring tamper-resistant records. For technical details on validator operation or custody architecture, readers should refer to the MIDL project’s documentation, as these aspects are part of MIDL’s protocol design rather than Helios’s.