How it works
Each pool links to one Treasury asset and one option market, collects USDC, buys a single put option when its public purchase rules are met, sells under its public sale rules, and distributes the remaining USDC to pool owners. After pool creation, there is no discretionary manager.
Two conditions must both occur before option expiry: minimum pool size reached, and quoted premium at or below the buy limit.
The pool sells at the sell limit, or at the final sale time. Deposits are closed after purchase, so ownership percentages stay fixed.
Ownership
A deposit of 10% of the pool's total deposits receives an ownership NFT for 10% of the pool. After the option sale, fee, and defined costs, that NFT claims 10% of the remaining USDC. If the pool never buys, the NFT claims its share of the deposited USDC.
A pool NFT identifies each pool and its fixed terms. NFT transfer rules are set before launch.
Edge cases
If the pool does not reach its minimum size, or the premium stays above the buy limit before expiry, no option is bought. Each holder claims their share of the pool's USDC, less defined costs.
The pool still exits. At the final sale time — always before expiry — the option is sold and proceeds are distributed. The pool does not hold to expiry by default.
Incorrect, delayed, or unavailable price data can delay or prevent a purchase or sale. Price-source rules are specified before launch.
Fees and costs
The protocol charges a fee. The product page must show the fee rate — and whether it applies to deposits, sale proceeds, or profit — before a user creates or joins a pool. Estimated execution costs are shown when they can be calculated. The fee schedule is pending before launch.
Full details in the whitepaper