What Spout Keeps Private, and Why

Spout publishes how the system works and what it did. It does not publish the exact rules for choosing strikes and expiries.

What stays private

• The rules for choosing strikes and expiries for each asset.
• The per asset settings and how they change with market conditions.
• When during a cycle calls are written, and the conditions for pausing an asset.

Why

Front running

If the rules were public, traders could predict which calls Spout will sell and when, and trade against the pool ahead of time. Lenders would earn less.

Gaming

Borrowers could time deposits and withdrawals around predictable cycles at the expense of others in the pool.

What you can always check

• Every contract's premium and expiry are recorded onchain.
• Every settlement and its amount is recorded onchain.
• Pool balances, including the receipt tokens that match the shares held, tranche values and the Insurance Fund are onchain.
• Your own position, at any moment.

See What You Can Verify Onchain.