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Protect: buy 7 days of protection

Deposit the NVDA or UNI you hold and buy 7 days of price protection. The price at the moment you buy sets the floor; at expiry only one official price counts.

What happens when you buy

  1. You pick a market and enter the amount to deposit.
  2. The page shows four numbers: the current premium rate, the floor price, the protected amount, and the expiry time.
  3. On confirmation the premium is taken from the deposited amount, in the asset, and the rest goes under protection.
Floor price      = official price at purchase × 95% (NVDA) or × 90% (UNI), rounded down to the price tick
Premium          = deposited amount × current premium rate, rounded up
Protected amount = deposited amount − premium
Expiry           = the first daily settlement time (12:00 UTC) after 7 full days from purchase

The premium rate comes from a public curve driven by the utilization of the market's Money Pool: the emptier the pool, the cheaper; the fuller, the dearer. The rate is locked at purchase and later curve changes do not affect you. See Markets and parameters.

Buying requires the official price to have been updated within the allowed freshness window (see Markets and parameters); otherwise the purchase is refused. You can never buy protection whose floor is at or above the current price.

What happens at expiry

At the settlement time the official price is read once.

Price above the floor

  • The full protected amount is returned.
  • No further fee.

Price at or below the floor

  • The full protected amount is sold at the floor price for USDG.
  • No further fee.

Only the official price at the settlement time counts. Nothing that happens to the price during the week changes the outcome.

Early exit

You can exit at any time before expiry. The asset is returned immediately and protection ends. The premium already paid is not refunded.

Auto-renew

Optional. When enabled, if protection expires without delivery, the returned asset immediately buys a new 7-day protection at the floor and rate of that moment, and a new premium is taken. If the pool has no capacity or the market is paused, nothing is renewed and the asset becomes claimable. USDG received through delivery is never renewed.

What you need to know

  • Protection is always for the full amount. What you buy is fully protected; it is never diluted. Apart from the ordinary checks (fresh price, minimum purchase, market not paused), a purchase is refused only when the Money Pool's remaining capacity is smaller than your amount; the page shows that capacity.
  • The premium is taken in the asset, at purchase. Depositing 10 NVDA does not protect 10 NVDA; the protected amount shown on the page is what is protected.
  • Settlement is automatic and the USDG or asset becomes claimable afterwards.
  • If the official price is temporarily unavailable at expiry, settlement is deferred to the next settlement time at which a price is available and your protection stays in force. In the extreme case the batch is voided: the asset is returned and the part of the premium not yet released to the Money Pool is refunded. See How settlement works.

Worked examples

NVDA: current price 220 USDG, Money Pool utilization 0%, premium rate 0.8%. You deposit 10 NVDA.

  • Premium 0.08 NVDA, protected amount 9.92 NVDA, floor 209 USDG.
  • Expiry price 231: you get 9.92 NVDA back.
  • Expiry price 198: you get 9.92 × 209 = 2,073.28 USDG.

UNI: current price 10 USDG, utilization 0%, premium rate 2.0%. You deposit 1,000 UNI.

  • Premium 20 UNI, protected amount 980 UNI, floor 9 USDG.
  • Expiry price 11: you get 980 UNI back.
  • Expiry price 8: you get 980 × 9 = 8,820 USDG.

All figures are illustrative.

See also