Trading and liquidity risks draft

Draft trading rules and risks for positions and pooled liquidity notes.

Version: draft-2026-11-14-3. Dated: 2026-11-14. Effective date: [OWNER AND COUNSEL TO COMPLETE].

Mainnet is not open. These rules describe the current design and devnet, with proposed launch controls identified separately. Test dollars and test notes have no monetary value. This schedule belongs with the terms.

What a position can lose and pay

You pay the premium up front. The position itself can lose all of that premium; it does not require later top-ups. Your wallet also pays network fees in SOL, including for some unsuccessful transactions. Wallet theft, wrong transfers and other software failures can cause losses beyond a position’s premium.

The sentence states the asset, direction, target price, expiry and what you could make. The payoff changes continuously over a price interval just short of the target. A loss pays nothing, a partial win pays part of the payout, and a full win returns the premium plus the amount you asked to make. A partial win can still leave you with less than you paid. Review the displayed cost and payout before signing; a quoted price is not a promised investment return.

ETH and BTC have daily expiries; SOL has Friday expiries. Settlement is at 08:00 UTC. The available dates and transaction limits are shown before a purchase. Quotes can change, expire or be refused. A screen showing a quote does not establish that a transaction confirmed.

Settlement and errors

Positions settle on OptionHouse’s own settlement price feed for the asset, rather than a price you select from another site. The settlement price can differ from a price you see elsewhere. A brief market spike near expiry may have little effect. Data can be stale, missing, wrong or compromised. A wrong settlement price can produce a wrong payout, even when another site’s price appears right.

Settlement runs through program transactions sent by a team-operated service. A winning payment may wait for that service, Solana, an available token account or pool funds. In a shortfall, that date’s winners receive the same proportion of what they are due. The unpaid balance is owed ahead of liquidity providers and the protocol. This priority does not guarantee recovery or a payment date.

Confirmed program outcomes determine on-chain balances. This draft gives the team no discretionary power to rewrite a confirmed trade or substitute a different settlement price retrospectively. A report of an error does not itself reverse a transaction. Error-report contact and final investigation or correction procedure: [OWNER AND COUNSEL TO COMPLETE]. Upgrade powers still create the risks below.

Selling before expiry

Cash-out sells a position back to the pool at its current buying price, below the price to open the same position. Buying and immediately selling loses money. Cash-out ends 15 minutes before expiry. A sale may be unavailable because signing stops, prices are unavailable, a pause applies or the pool cannot support it. You may have to hold until settlement, and settlement may also wait.

Liquidity providers supply the pool that pays positions. Deposits buy newly issued notes at a price above what notes sell back for; take-outs sell notes back at the lower price and remove them from circulation. Note value reflects a proportionate share of pool results, including losses. It is not a deposit account, a fixed return, an insured balance or a promise to return principal. You can lose all of what you put in.

Traders who understand prices better can win more than the pool earns from other traders. Fast price changes and mistakes can cause large losses. More deposits do not guarantee more trading income; they can leave the same income shared by more notes. Back-tested results are historical calculations and do not promise future returns.

The notes card’s value differs from what you would receive on sale. The exit cost changes with open positions and stays with remaining liquidity providers. A secondary buyer may offer a different price, or no price at all. Transferability does not guarantee a market.

Withdrawal priority and transfers

Winners are paid first. Funds that open positions may need stay in the pool. Part of a requested take-out can remain as notes while positions settle. Operational failures and proposed emergency controls can delay it further. There is no promised completion time.

Notes are transferable tokens. A recipient takes the economic risk of holding them, including existing losses and withdrawal limits. Receiving notes outside the app does not prove eligibility to use the app or redeem through team services. Country and sanctions checks may apply on redemption under the final policy. Interface checks cannot prevent every secondary transfer on Solana.

Notes alone do not give a holder control of the team’s upgrade key. Holder voting, legal claims against an issuer and any rights beyond the token’s program rules: [OWNER AND COUNSEL TO COMPLETE]. The final issuer and legal treatment remain unresolved; calling a token a note does not determine its legal classification.

Costs and incentives

The trading charge is included in the premium. There is no separate OptionHouse charge added to that displayed purchase price and no deduction from a full winning payout. Cash-out uses a lower price than opening a position. The liquidity exit cost stays with remaining note holders. Solana network fees are separate and do not return merely because a transaction fails.

The protocol’s share is paid ahead of liquidity providers, including during losing periods, but behind every unpaid winner. Its recipient is the account authorised by the program’s administrator. This creates an incentive to earn from trading even when note holders lose. Exact public fee figures and any separate incentive programme need verified disclosures before use; none is promised here.

Keys, pauses and proposed launch controls

The current design uses a founder-held key to upgrade programs. An upgrade can change balances, transaction rules and how positions or notes work. A stolen signing key can authorise harmful prices or transactions. A guardian can revoke a signing key and pause new positions, deposits and cash-out buybacks. The current pause controls leave settlement and note withdrawals running under their usual rules. A pause does not repair earlier losses.

The required setup before mainnet launch adds a multisig administrator, a separate guardian, a deposit cap and a deposit open/close switch. It also adds an immediate withdrawal freeze that ends after 72 hours unless the administrator extends it, with an earlier lift available. Settlement and winners’ payouts are intended to continue during that freeze. Deposits will be permitted only while the vault is open and up to its cap. Public deposits are closed at launch. These controls must ship before launch; this document does not deploy them. The current program has no deposit cap or automatic withdrawal-freeze timer. Do not rely on either until the deployed program and its settings are confirmed.

A cap limits deposits, not losses. A timer does not guarantee an exit after it ends; payment priority, available funds and service failures still matter. No upgrade delay is promised by this draft.

Outside failures and eligibility

Solana can stop or congest. Wallets, network providers and team services can fail. USDC can lose its dollar value or its issuer can freeze it, stopping transfers and delaying payments. These failures can affect both positions and notes.

Read the restricted persons schedule. Its country list is the settled launch distribution policy, not a statement that every listed place has the same law. A sanctions hold may prevent a payment that an ordinary country restriction would permit. Nothing in these disclosures guarantees solvency, liquidity, accurate data, lawful availability or an investment outcome.