Understand your partial.
The basics
Bounded: A partial can never be worth more than the company it belongs to. One underlying equity token always mints 100 tokens of every segment, so if 100 tokens of any one partial ever sold for more than the underlying, anyone could mint a set, sell that partial, and keep the other segments for free. Arbitrage keeps every partial between zero and the value of the whole, and the partials in a set together track the parent.
Sentiment: A partial does not receive its segment's revenue, profits, or a separate dividend. Its price reflects how much of the company's value traders think that business represents. Because the set always adds back up to the parent, partials share a fixed whole. If traders become more bullish on Starlink relative to the rest of SpaceX, the Starlink and Others partial gains weight and the other partials lose weight, even if SpaceX's share price doesn't move.
Like a prediction market, prices within a set are bounded shares of a whole that sum to one. Unlike a prediction market, nothing resolves, so there is no outcome date. The “answer” is the ongoing market consensus, held in place by mint and redeem.
How it behaves
- Value of the parent: The value of the set is tied to the value of the underlying share. Partials move in price in aggregate with the parent company.
- Mint and redeem arbitrage: If the sum of the parts costs less to acquire than the value of the parent, or vice versa, any user can arbitrage this delta.
- Dividends: Dividends accrue to the underlying shares, and a partial's share of that value is its market weight.
- Corporate spin-offs: In case of a corporate spin-off, shares of the new company are airdropped to holders of the partial, subject to the timelines of the issuer of the underlying tokenized security.