Risks

TSLAx can fall#

Your shares hold TSLAx. When TSLA drops, so does the value of your deposit. A week’s premium is small next to a normal weekly move in the stock.

Capped upside#

In a week that closes above the strike, the call buyers take everything above it. A week that ends 20% higher leaves a fully sold vault about 5.8% higher: 5% to the strike plus the premium.

Thin bidding#

Only approved market makers bid, and a round takes sixteen bids at most. With few bidders the auction clears low. Calls that nobody bids for at the reserve price stay unsold, and that part of the vault earns nothing that week.

A fixed strike#

The strike is always 5% above the starting price. It doesn’t adapt to volatility: calm weeks pay little, and in wild weeks 5% is reached more often.

The settlement price#

Rounds settle on Pyth’s price for the session’s last second, which can differ from the exchange’s official close. If no valid mark is recorded in time, or two conflict, the fallback gives call holders one TSLAx per call sold.

The issuer#

TSLAx can be frozen, paused or moved by its issuer, and its multiplier changes with corporate actions. If the issuer removes TSLAx from the vault, the program can’t replace it.

Code#

Shear is new software on Solana. A bug in the program, in the token programs or in Pyth’s receiver could lose funds. The program’s behaviour is described exactly in the Program reference.

Waiting#

During a round, a withdrawal waits until after expiry, up to a week. A disputed round can add seven days.