How it works

Mint and redeem

The rules of the complete-set primary.

Anyone can mint and redeem at any time.

Mint

You deposit underlying and receive the same number of raw units of every partial in the set, less the mint fee.

  1. The program transfers your deposit into the vault and measures what arrived, r.
  2. fee = ceil(r × mint_fee_bps / 10000).
  3. net = r − fee. The program requires net ≥ MIN_MINT (1,000 raw) and net ≥ min_sets_out.
  4. net raw units of each partial are minted to your token accounts. sets_outstanding increases by net. The fee stays in the vault as accrued fees.

The fee rounds up, so splitting a mint into small pieces never reduces it.

Note. Each series has a deposit cap on how much backing it may hold. A mint that would push sets_outstanding above the cap fails. Redeems free capacity. GOOGLx Series 1 launched with a cap of 625 GOOGLx; SPCX Series 1 with a cap of 1,750 SPCX.

Redeem

You burn sets_in raw units of every partial and receive sets_in − fee raw underlying.

  1. Every account is checked against the addresses committed in SetCore.
  2. fee = ceil(sets_in × redeem_fee_bps / 10000). The redeem fee starts at 1%.
  3. The program co-signs the burn of sets_in of each partial. Burns run before the payout.
  4. The vault pays exactly sets_in − fee to your destination account. The program measures the receipt and requires it to equal the payout and be at least min_underlying_out.

Redeem works at any size. The only fee-driven rejection is a payout that rounds to zero.

Warning. Redemption requires one unit of every partial currently in the set. If a set has N partials and the issuer adds one, you cannot redeem until you hold all N + 1. See Recomposition.

Redeeming a single partial

The program only redeems complete sets. To exit one partial, the site offers assisted redemption: a flash loan acquires the missing partials, the complete set is redeemed, and the loan and its costs are repaid within the same transaction. You receive the remaining underlying. Execution and output depend on the other partials' liquidity and prices. A partial can also simply be sold on its pool.

Corporate actions and series

There are no protocol states for corporate actions. If the company reclassifies a segment, the residual partial absorbs the reporting change. If the issuer wants corrected definitions, it launches a new series. Swapping is voluntary: redeem series N, mint series N+1. The old series keeps redeeming at par.

For lighter changes that keep the existing partials, pools and integrations alive, the issuer can recompose a series in place. That power touches holders' claims and is documented in Recomposition.