Glossary

  1. 1.spAsset: A 1:1 tokenized representation of a real share or ETF unit, custodied with a regulated US broker and backed onchain via Proof of Reserve.
  2. 2.LTV: Loan-to-Value — the ratio of borrowed value to collateral value. Spout's maximum LTV is 50%.
  3. 3.Health Factor: The buffer ratio between current collateral value and the liquidation threshold. Above 1.00 is safe.
  4. 4.Lock: The state in which your collateral is enrolled in the protocol's options cycle. Required to borrow; available without borrowing for users who just want exposure to the borrower-side cycle yield.
  5. 5.Auto-Roll: A user setting (ON by default) that automatically re-enrolls residual collateral into the next cycle after option assignment.
  6. 6.Cycle: A single options expiry window. Cycles run weekly or biweekly per asset, entering on Friday at market open and expiring the following Friday (weekly) or two Fridays later (biweekly).
  7. 7.Covered Call: An option contract that grants someone the right to buy your share at a fixed price before a fixed date, in exchange for a premium paid to you upfront.
  8. 8.Strike: The fixed price at which the holder of a call option can buy the underlying share.
  9. 9.Volatility Risk Premium: The persistent historical gap between implied volatility (the price of options) and realized volatility (what actually happens). The structural source of return for covered call strategies.
  10. 10.Insurance Fund: The first-loss reserve, continuously funded from a slice of every cycle's premium income, that absorbs cycle losses before any lender impact.
  11. 11.Proof of Reserve: An onchain mechanism that publishes an attestation that the spAsset supply matches the actual share holdings at the broker.
  12. 12.Distribution: The weekly payout of cycle premium income to lenders, paid every Monday at 9am ET.
  13. 13.Assignment: When a sold call option expires in-the-money and the underlying shares are sold at the strike price. Bounded outcome: the borrower keeps the premium and any proceeds above debt.

If any of this resonates, the right next step is to open the app and try it with a small deposit. The lender and borrower flows take less than a minute each. You will see the actual cycle data, the actual yield, and the actual health factor math on a position the size of your choosing, with no commitments and no minimums.