European options.
Bounded by design.
HOOD Options is a proposed cash-settled stock options protocol on Solana. The first supported reference asset is HOOD. The production program and oracle are not deployed yet.
Contract design
The MVP uses capped call and put spreads, not uncovered options. Every contract has a lower strike, upper strike, expiry, settlement window, and maximum cash payout. Exercise is European: payout is determined once, at expiry.
min(max(Sₜ − K₁, 0), K₂ − K₁)PUT PAYOUTmin(max(K₂ − Sₜ, 0), K₂ − K₁)This cap makes the liability knowable before a trade. If the vault cannot reserve the complete maximum payout, the order must fail.
Lifecycle
- CREATE SERIES
The protocol authority creates a HOOD series with fixed strikes, expiry, collateral mint, and settlement rules.
- DEPOSIT
LP stablecoin moves into the program-owned vault and receives epoch shares.
- BUY
The buyer pays a premium. The vault locks the full maximum payout for every purchased contract.
- SETTLE
After expiry, the approved oracle path records one valid HOOD settlement price.
- REDEEM
The position owner receives the deterministic payout. Unused collateral returns to available vault liquidity.
- WITHDRAW
LP shares redeem only after the epoch's outstanding obligations are released.
LP vault
Premiums remain inside the vault and increase share value. There is no separate emissions promise and no creator-market allocation. Protocol-owned reserves and user LP shares must be accounted for separately.
| Total assets | Collateral held by the vault, including paid premiums. |
|---|---|
| Locked collateral | Maximum unresolved payout across open contracts. |
| Available liquidity | Total assets minus locked collateral and pending withdrawals. |
| LP share value | Net vault assets divided by outstanding LP shares. |
Pricing
The current website is an interactive model preview. It estimates capped-spread premiums from Black-Scholes vanilla legs. Those values are clearly labeled and are not executable quotes.
Production pricing still needs a deterministic onchain policy covering oracle spot, volatility input, time to expiry, utilization spread, fees, quote expiry, slippage bounds, and stale-data rejection. No offchain quote should be trusted without onchain bounds.
Settlement oracle
A production HOOD equity feed has not been bound. Settlement must reject stale updates, excessive confidence intervals, timestamps outside the documented observation window, and unapproved feed accounts. A manual admin price is acceptable only for local tests, never as an undisclosed production oracle.
Launch blocker: bind and independently verify a licensed or otherwise permitted HOOD reference-price source that can publish to Solana at the required settlement time.
Solana accounts
| ProtocolConfig PDA | Authority, oracle authority, collateral mint, pause state, fee policy. |
|---|---|
| Vault PDA | Total assets, total shares, locked liability, epoch state. |
| Vault token account | Program-controlled SPL collateral custody. |
| Series PDA | HOOD strikes, type, expiry, settlement state, open interest. |
| LP Position PDA | Owner, shares, epoch, withdrawal state. |
| Option Position PDA | Owner, series, contract count, premium paid, redemption state. |
Deployment status
Responsive option-chain interface
Solana Wallet Standard connection
Capped payout and solvency model tests
Audited Solana program deployment
Production collateral mint binding
HOOD oracle binding
End-to-end devnet lifecycle
The interface must remain prelaunch until the pending items pass. A program ID or vault balance should never be invented or displayed as live.
Risks
LPs can lose collateral when option payouts exceed premiums earned. Traders can lose the complete premium. Additional risks include oracle failure, smart-contract defects, Solana congestion, stablecoin depeg, model error, limited liquidity, and legal or jurisdictional restrictions.
HOOD Options references a public stock price but does not represent ownership of Robinhood Markets shares. Nothing in this documentation is investment advice or an offer in any jurisdiction.