Long and short

Two sides meet on one market. You go long to take the book's credit and earn the premium. You go short to be paid the realized loss. A single funded pool is the counterparty to both. The curve, the base rate, and the settlement math are on the pricing page.

The two tokens

• The long token. You deposit USDC, mint the long token, and stand as the first loss capital behind the book. You earn the 3.63% risk free rate from tokenized treasuries plus what shorts pay, a floating yield, and absorb a loss first.
• The short token. You take a position of notional N, mint the short token, and pay a fixed premium up front for a set term at the rate you buy. You are paid the realized loss on N if the book takes a loss during the term.
• One pool per book is the counterparty to both, fully funded. Short notional can never exceed pool capital.

Going long

Lending into these books directly is gated, with KYC, accreditation, and minimums in the millions, and it locks your capital until the loan repays. Going long is permissionless, any size, and liquid. A wallet that could never get into the institutional pool takes the same credit exposure synthetically and earns the premium. When short demand is there the long is synthetically long the credit. When it is thin the long earns the base rate alone.

Exit

Both sides exit through the pool. A short is bought for a term and expires at the end of it, with no refund and no payout unless a loss landed in the term. You withdraw any long capital not currently backing a live short, and the rest frees as shorts expire or new deposits arrive.

Price and payout

The price is a kinked utilization curve seeded by resting long limit orders. The short locks a rate and pays the term up front. A loss settles off the on chain loss feed after recovery through a bonded challenge and panel. The numbers are on the pricing page.