LOTLESS
Open simulator

Protocol Persistent, fractional, fully covered

A call that tapers
instead of expires.

The buyer pays once. The strike is fixed. Remaining exercisable Stock Token notional declines according to a public curve. There is no buyer margin, liquidation, or last-block exercise race.

Series anatomy
Premium
Once
Strike
Fixed
Notional
Tapers
Settlement
Stock Token
Buyer margin
None
Spot oracle for exercise
None

01 / Claim lifecycle

From covered vault
to token delivery.

Every step is designed around raw Stock Token units. Display values can change; contractual accounting cannot drift.

WriterLocks Stock TokenCanonical raw units
Covered vaultMints claimStrike + taper fixed
BuyerPays USDG premiumClaim transfers onchain
Exercise routerCollects strikeDelivers Stock Token

The writer may recover collateral released by tapering, but only after accounting proves aggregate remaining claims stay fully covered.

02 / Deterministic taper mathematics

One curve.
No hidden clock.

Each series publishes its opening notional, fixed strike, and immutable taper parameter. Anyone can calculate the amount remaining at the same block time.

Remaining raw notionalR(t) = R₀ × e−λt
USDG due on exercisestrike × R(t)
Example taperR₀ = 0.10 NVDA
Lotless remaining notional curveA smooth downward curve from the opening Stock Token amount toward zero as time increases, compared with a dated option cliff. 100%OPENTIME →DATED CLIFFLOTLESS TAPER
R₀
Opening raw notional
λ
Immutable taper rate
t
Elapsed time
R(t)
Amount remaining

03 / Participants

Four roles.
Clear obligations.

$LOTLESS coordinates market operation. It never replaces the assets that pay or collateralize the option.

Buyer

Owns the claim

Pays the premium, holds or transfers the claim, and decides whether to exercise. Maximum pre-exercise loss is the paid premium.

Uses: USDG + claim
Writer

Covers the claim

Locks Stock Tokens and receives the agreed premium for selling the exercise right.

Uses: Stock Token
Market maker

Publishes price + size

Competes on quote quality. A maker does not need $LOTLESS merely to submit a quote.

Uses: USDG + Stock Token
Auction operator

Activates the market

Locks $LOTLESS and posts a separate USDG performance bond for an independently approved market.

Uses: $LOTLESS + USDG bond

04 / Physical settlement

The referenced token,
not cash P&L.

Exercise sends the remaining canonical Stock Token amount to the claimant after collecting the fixed USDG strike payment.

Definition

In Lotless, “physical settlement” means delivery of the referenced Stock Token contract. It does not mean delivery of the underlying company share.

05 / Corporate-action accounting

Protocol logic.
Not a footnote.

Every market needs deterministic handling before collateral enters the vault. Unsupported transformations fail closed.

EventAccountingProtocol response
Split / display multiplier

Preserve raw-unit claim economics through multiplier-aware display logic.

Multiplier-aware
Dividend display adjustment

Follow the Stock Token contract’s canonical raw balance and UI multiplier behavior.

Issuer-aligned
Merger / acquisition

Use a predeclared adapter or pause new series; never improvise a closeout after funds are locked.

Adapter required
Delisting / redemption / pause

Enter a documented fail-safe state that preserves withdrawal and exercise rights where possible.

Fail-safe required

06 / Protocol architecture

Every component.
One invariant.

The system separates collateral custody, claim accounting, exercise, market operation, governance, and fee routing.

Market RegistryCovered Writer VaultClaim LedgerTaper MathExercise RouterCorporate Action AdapterOperator BondVoting EscrowMarket GaugeFee RouterGovernance TimelockSafety Reserve
Read architecture docs 12 components