Dusk Phoenix gets ugly when collateral is already in the confidential lane and the venue still can’t treat it as usable.
The move completes on-chain. DuskDS finality lands. You can see blocks closing, no drama. The position exists under the Phoenix posture—encrypted balance, confidential state transition, done.
Then the next leg tries to fire. Margin update. Vault deposit. Venue-side risk check. The thing that’s supposed to be boring: “show me the collateral, prove it qualifies for this call, proceed.”
Phoenix doesn’t hand over a convenient “yes” just because a workflow expects it.
Nothing is missing. That’s the part that wastes time. The engine isn’t asking for a screenshot, it’s asking for something it can bind to the current state and defend later. A state-bound proof that says: this collateral is present under this execution context, and this action is allowed now.
And in Phoenix flows, that object is not ambient. It shows up when the disclosure rule is invoked and clears. Not when ops wants to close the loop.
So the UI says completed, the risk line says unchanged, and nobody wants to be the first person to wave it through with an assumption. That’s where desks start doing the dumb stuff. Re-submit. Toggle settings. Ask if the RPC is lagging. DuskEVM is happily executing other calls the whole time. This one path just sits there.
Someone suggests the usual fix... leak a receipt. Cache an acknowledgment. Emit “collateral seen' as a helper event so downstream can move. In Phoenix, that helper becomes the system. People will rely on it. Then an auditor asks what that receipt actually meant under a confidential posture and you’re back in meetings.
The protocol does not rescue you. It won’t manufacture a comfort artifact that isn’t authorized by the disclosure scope.
So you end up choosing between two bad rhythms: wait for the disclosure path to produce what the venue needs, or redesign the flow so the "usable collateral" step is explicit, state-bound, and timed like a real dependency instead of a vibes-based assumption.
Meanwhile the position is settled. Quiet. Still not counted.
