BREAK and HOLD
Two notes per lot. One is paid by the discount, the other by its absence.
What a note is
BREAK and HOLD are SPL tokens with zero decimals: one token is one lot. Each series has its own pair of mints and its own vault, so notes from different series are different tokens. They can be transferred like any token, escrowed in a sell offer, or held until settlement.
- One lot
- 1 SOL of notional; 0.03 SOL of collateral locked at mint
- BREAK
- Pays more the deeper and longer the discount. Maximum 0.03 SOL per lot.
- HOLD
- Pays 0.03 SOL minus whatever BREAK earned. Maximum 0.03 SOL per lot.
- Together
- Always exactly 0.03 SOL per lot, before and after settlement
What BREAK earns
Every five-minute interval contributes the part of the discount above 0.25%, capped at 3%, multiplied by 300 seconds. The sum over the week is the accrued area. Full payout is reached when that area equals 3% held for 48 hours, so a discount at or above 3.25% for two days pays the whole vault to BREAK, and everything past that point changes nothing. Smaller discounts take longer: 1% for the whole week pays 87.5%.
| Discount | Held for | BREAK per lot | Share of vault |
|---|---|---|---|
| 0.25% or less | any time | 0 lamports | 0% |
| 0.50% | 7 days | 8,750,000 | 29.17% |
| 1.00% | 7 days | 26,250,000 | 87.50% |
| 1.80% | 36 hours | 11,625,000 | 38.75% |
| 5.00% | 24 hours | 15,000,000 | 50.00% |
| 3.25% or more | 48 hours | 30,000,000 | 100% |
The payout is computed once per lot at settlement and multiplied by the lots you claim, so ten lots pay exactly ten times one lot. The calculator on the front page runs the same formula; the exact expression is in Fixed terms.
Premium and profit
When you buy a note from an escrow offer you pay the maker's asking price per lot, the premium. At settlement you receive the note's payout. Your result is payout minus premium minus transaction fees. When you mint a pair and sell one side, the premium you receive is income against the 0.03 SOL you locked, and you keep the other side's payout.
A premium is an ask, not a probability. Nobody guarantees an offer at any price, an exit before settlement, or that the ratio of premium to maximum payout says anything about how likely a depeg is.
Getting out early
Two ways. Sell the note from escrow at a price you set, if someone takes it. Or, if you hold both notes for the same lots, merge them before settlement and withdraw the full 0.03 SOL per lot regardless of what has accrued. There is no third way: the vault only opens for complete pairs before settlement and for single sides after it.