How Bidreserve works
A cash-secured put is a standing, fully funded offer to buy a specified Stock Token at a fixed price. A second participant pays for the right, not the obligation, to sell into it before expiry.
For the bid writer
Pick the supported asset, a strike in quote tokens per stock token, quantity, premium and expiry. The contract locks the full strike payment. The writer receives the premium only if someone buys the option. Once purchased, the reserve stays locked until exercise or expiry. Before purchase, the writer may cancel and recover it.
For the option buyer
Pay the premium in the quote token. Before expiry, you may deliver the exact stock-token quantity and receive the fixed strike payment. Exercising is optional. An unexercised option expires without a premium refund.
Settlement
Exercise transfers the Stock Token from the buyer to the writer and the full strike payment from the contract to the buyer in one transaction. Once expired, the writer reclaims unused reserve. No oracle or automatic exercise is required for this exchange.
Risks and limitations
The writer can be required to buy a token worth less than the strike. The buyer can lose the full premium. Gas, token transfer restrictions, depegs, contract faults and limited market liquidity can affect outcomes. Robinhood Stock Tokens provide economic exposure, not ownership of underlying shares. Corporate actions may change the economic meaning of a token quantity. This software is unaudited.
Availability
The first Robinhood Chain market uses USDG and the NVDA Stock Token. Check the contract addresses below before transacting.
Fees and control
The market contract charges no protocol fee and has no admin or upgrade function. The writer can cancel an open offer; after purchase, only the buyer can exercise before expiry. After expiry, the writer can reclaim the reserve. The option premium is paid directly to the writer when purchased.
Mainnet contracts
Robinhood Chain (chain ID 4663). Market: 0x1b20d2068B4fB7C967DA66d77Cb5B1C96518518e
USDG: 0x5fc5360D0400a0Fd4f2af552ADD042D716F1d168
NVDA: 0xd0601CE157Db5bdC3162BbaC2a2C8aF5320D9EEC