Depositors
Settlement and payout
At expiry the calls either expire worthless or take part of the round’s TSLAx. Depositors keep the rest, and the premium.
The payout#
payout per call = max(close − strike, 0) ÷ close
In TSLAx. Close and strike are the USD value of one TSLAx; there is one call per TSLAx.Calls pay in TSLAx, not in USDC. A call worth $5.25 at a $110.25 close pays 5.25 ÷ 110.25 = 0.047619 TSLAx. The round’s collateral always covers it: the payout per call is below one TSLAx at any price.
A worked example#
| Value | |
|---|---|
| Deposited | 100 TSLAx |
| Strike | $105.00 |
| Calls sold | 100, at $0.80 each |
| Close | $110.25 |
| Payout per call | (110.25 − 105.00) ÷ 110.25 = 0.047619 TSLAx |
| TSLAx you keep | 100 − 4.7619 = 95.2381 TSLAx, worth $10,500.00 |
| Premium | $80.00 USDC |
At any close above the strike, the TSLAx you keep is worth exactly the strike: 95.2381 × $110.25 = 100 × $105.00. Everything above the strike went to the buyer.
Below the strike#
The calls expire worthless. The round reserves nothing, and every TSLAx goes back to the vault.
When only part of the calls sold#
The payout applies to the calls sold, not to the whole round. If 60% of the offer sold, 40% of the vault keeps its full upside that week, and the premium is 60% of a full sale’s.
The fallback#
After settlement#
The reserve is kept in an account of its own for that round. Call holders claim from it whenever they like, and it never mixes with the vault or a later round. What is left is processed for tickets at one ratio, then the round closes.