Product
A writer creates an offer and deposits the complete maximum payout in USDG. A different wallet may buy that offer by depositing the fixed premium. Once accepted, neither side can change the strike, lower bound, expiry, premium or reserve.
The position is cash-settled. Nivell does not custody the buyer's Stock Token and does not verify a matching Stock Token balance. The buyer receives USDG when the approved settlement price falls below the strike.
Position terms
| Strike | The price where buyer payout begins. |
|---|---|
| Lower bound | The price where the buyer reaches the maximum payout. |
| Maximum payout | The USDG reserve deposited by the writer when the offer is created. |
| Premium | The fixed USDG amount deposited by the buyer when accepting the offer. |
| Accept deadline | The last time another wallet can accept the open offer. |
| Expiry | The earliest time the active position can be settled. |
Settlement
If the settlement price is at or above the strike, buyer payout is zero. If it is at or below the lower bound, buyer payout equals the maximum payout. Between those points the payout grows linearly.
payout = reserve × (strike − price) ÷ (strike − lower bound)
After a valid settlement, the buyer receives the calculated payout. The writer receives the fixed premium plus any unused reserve.
Price feed
Each offer references a feed explicitly enabled by the market administrator. Settlement requires a positive update published after expiry and still inside the configured freshness limit. Robinhood Chain Stock Tokens use Chainlink price feeds for their reference data. Supported feeds are shown directly in the app.
Failures and refunds
Unaccepted offer
The writer can cancel while the offer is open. After the accept deadline, anyone can trigger the same cancellation. The complete reserve returns to the writer.
Unavailable settlement feed
If no valid fresh price is available after the expiry and refund grace period, either side can abort the position. The writer recovers the reserve and the buyer recovers the premium.
Rejected transaction
No state changes when a wallet rejects a signature or an onchain transaction reverts.
Risks
The buyer can lose the complete premium when the settlement price remains at or above the strike. The writer can lose some or all of the reserve below the strike. Payout depends on the configured price feed and the exact terms of the accepted offer. Smart contracts, tokens, wallets, network availability and oracle infrastructure can fail. Review every wallet request and contract address before signing.