Protocol
Settlement price
Rounds settle on Pyth’s TSLA price for the last second of the expiry session. Nobody can choose or replace that price, and a failed mark has a fixed fallback.
Which price#
The program accepts one kind of price: a Pyth TSLA/USD regular-session update, posted through Pyth’s receiver program with full guardian verification. Partially verified updates are rejected. The update’s confidence interval must be within 1% of the price.
For the close, the update must be the first one published in the session’s last second: its publish time is close − 1 and the update before it was published earlier. For a Friday 16:00 close that is the price at 15:59:59 ET.
From TSLA to TSLAx#
Pyth prices one Tesla share. The program multiplies by the TSLAx multiplier in force at close − 1 to get the value of one TSLAx, in USD with six decimals, rounded down. The strike uses the same conversion at the start, rounded up. Both are stored in the round account.
Timeline#
| When | What | Instruction |
|---|---|---|
| Expiry, e.g. Fri 16:00 ET | Calls stop; the mark is the price at 15:59:59 | |
| Within 1 hour of expiry | The mark is recorded; the round becomes Observed | observe_expiry |
| 15 minutes after the mark | Window for a conflicting verified price | challenge_expiry |
| After the 15 minutes | The round settles at the mark | settle_round |
Disputes#
If anyone submits a second fully verified update for the same second with a different price, the round becomes Disputed. Neither the keeper nor the admin can pick between the two prices or post a new one. A disputed round waits for the fallback.
The fallback#
Seven days after expiry, a round that is still Active (no mark was recorded within the hour) or Disputed can be settled with timeout_settle. It doesn’t invent a price. It reserves the most the calls could ever be owed: one whole TSLAx per call sold.
Why not the official close#
The exchange’s official closing price comes from its closing auction, which isn’t published on Solana. Pyth’s price for the session’s last second is the closest mark the program can verify on its own. On a day with a large closing auction the two can differ, and the round settles on Pyth’s.