FAQs
Everything you need to know about Spout and how we're changing decentralized investing.
Yes. spAssets sit in your wallet. The underlying shares are custodied 1:1 at a regulated US broker and attested onchain via Proof of Reserve. The protocol can write covered calls against locked collateral. It cannot move the underlying out from under you. Repay your debt, unlock, and you walk away with your shares.
Only through option assignment, which is a known and bounded outcome (you sell at the strike, you keep the premium, the debt is cleared from the proceeds first). With Auto-Roll on, the position is automatically restored after assignment.
No. The position is non-recourse. The maximum you can lose is the collateral you posted.
The Insurance Fund absorbs the loss first, then the Junior Tranche takes the hit, then (only as a last resort) Senior lender principal. The buffers are sized against multi-year backtest worst cases on each launch asset.
Because the lender side is paid out of options premium income, not borrower interest. The borrower's collateral is what generates the yield. Charging interest on top would be charging twice for the same thing.
Yes, subject to KYC and the standard 30% US dividend withholding on equity dividends.
Dividends paid by the underlying shares flow back to spAsset holders (net of any required withholding). They do not get absorbed by the protocol.
Lender deposits have no lockup. Borrower collateral has a short cooldown after repayment so the position can exit the current options cycle cleanly. You always retain the right to repay your debt and exit; the cooldown is on the collateral release timing, not on your ability to close the loan.
No. You can lock collateral without borrowing to earn the borrower's share of cycle yield, and you can lend stablecoins without ever borrowing to earn the lender's blended yield. Borrowing and lending are independent.
Because we want to give you onchain composability without sacrificing the legal status of the underlying. The regulated-custody model is what lets Spout offer real exposure to real public equities with real dividends, real corporate-action handling, and a real audit trail.
The broker handles them at the share level. The protocol reflects them at the spAsset level on the same timeline. Splits propagate to balances. Mergers and acquisitions trigger a clean unwind path documented in the protocol's corporate actions policy.
For individual stocks, the engine skips cycles that would overlap an earnings release. ETFs do not have this constraint.
Spout supports multiple stablecoins on both the lender side and the borrow side. You can mix and match.
Per-asset, the protocol selects strikes and expirations that balance premium income against assignment probability, using a calibration that runs continuously against current market conditions. The selection is automated and rules-based. The philosophy is straightforward: keep assignment chance moderate, harvest the premium with discipline, and stay structurally on the right side of the volatility risk premium over the long run.