Docs

How it works

Chute is a book of drop cover for Stock Tokens on Robinhood Chain. A writer locks USDG and offers to cover one stock for a set term. A holder buys cover for a dollar value of that stock and pays the premium upfront. At expiry the Chainlink price decides how much, if anything, goes to the holder.

Band

The slice of a drop the cover pays for, measured from the price at purchase. Standard cover pays for the part of a drop between 10% and 30%.

Value

The dollar value of stock covered. The payout is the value times the part of the drop that falls inside the band.

Premium

A share of the value, paid once to the writer when the cover is bought. It is the whole cost for the holder.

Max payout

Value times the band width. For $1,000 of 10% to 30% cover that is $200, locked from the writer's USDG at purchase.

Buying cover

Pick a stock, the value, a term of 7, 14 or 30 days and a band. The app finds the cheapest open offer that can back the full payout and shows the premium, the price where cover starts paying and the most it can pay before you sign. You don't need to hold the stock.

Example: $1,000 of NVDA, Standard band, bought at $200. At expiry NVDA is at $164, an 18% drop. The 8% inside the band pays $80.

Writing cover

Lock USDG and choose the stock, term, band and premium. Every dollar locked backs cover worth one dollar divided by the band width, so $1,000 locked on a 10% to 30% band backs $5,000 of cover. Premiums go to your wallet as covers are bought. Unused USDG can be withdrawn any time; USDG behind a live cover stays locked until it settles.

Settlement

After expiry anyone can settle a cover. The contract reads the Chainlink feed for the stock and uses the last price published at or before the expiry time. The payout goes to the holder, the rest of the locked USDG goes back to the writer, both in the same transaction. The feeds run 24/5, so a cover that expires over a weekend settles on the Friday close.

Contracts

Everything the app shows is read from the contracts on Robinhood Chain.

Risks

Writers can lose

A writer can lose all the USDG locked behind a cover if the stock falls through the whole band. Only write what you can afford to lose.

Band limits

Cover pays nothing for the first part of a drop and nothing more past the bottom of the band. A holder can pay a premium and get nothing back.

Not audited

The contracts have not been reviewed by an outside auditor.

Stock Tokens

They are issued by Robinhood Assets (Jersey) Limited, which can pause them, and they are not offered to US persons.

Oracle

Settlement uses Chainlink. If a feed stops, settlement waits until it publishes again.

No advice

Nothing on this site is financial advice, insurance, or an offer to buy or sell anything.

The token

$CHTE is a community token for the project. It does not unlock features, pay yield or give any claim on the cover book, and the app works the same without it.