Security and trust

This page says what you have to trust, and what the program enforces on its own.

What the program enforces

• Money leaves a vault only to the owner of a request, by cancel before the close or claim after it. There is no admin withdrawal.
• Follow is never exposed beyond what Fade holds, and a gain is never larger than the Fade side. Losses on Follow never exceed the exposed part.
• Each request takes its share of the settlement totals rounded down, so claims cannot add up to more than the vault paid in.
• A report line counts only when two of the three keepers post it with identical fields. A close counts only when two keepers post the same day and price, and all three when it moved more than 15% from the last close.
• A close waits 30 minutes after it is accepted before anyone can settle with it.
• A score uses only the first close on or after its target day, so nobody can pick a friendlier day.
• A filing record can be closed only once it can no longer matter, and the rent goes to the keeper who posted it.

What you trust

The keepers, for prices. Two keepers that agree on a false close within 15% could move up to that much between the two sides for one day. Every close the program accepted can be compared with Nasdaq's official close.

The keepers, for history. Each member's record from before launch is a total two keepers computed from Nasdaq's closes. It can be recomputed from the public reports and closes, but it is not proven on chain.

The operator, for the pause. The operator can pause the baskets. While paused nobody can settle, so a waiting request can be cancelled but nothing new fills. The operator cannot move money.

The upgrade key. The program can be upgraded by its upgrade authority. It is kept, not burned, so a bug can be fixed; it is also the key to watch.

Limits

• A basket holds at most 64 open buys across 24 stocks. Buys past that are skipped and marked.
• Every held stock needs a close every trading day, or that basket waits until it is posted.
• Filings move into baskets in the order someone sends them; the keepers send them in filing order.
• Reports arrive up to 45 days after the trade, and amounts are ranges.

Next: Economics