POSITION A / CAPPED
Value up to the cap.
The capped position follows the stock price until it reaches K. Its settlement value cannot exceed that cap.
CAPPED VALUEmin(S, K)
Still exposed to falls in the underlying stock.◒ STRUCTURED STOCK POSITIONS
Hold the value.
Separate
the upside.
Split a stock token at a price cap. Keep the capped position, sell the upside, or hold both until you decide.
01 / A TESTNET DESIGN STUDY
Interactive simulation. No wallet or contracts connected.
Interactive simulation. No wallet or contracts connected.
THE SPLIT, AT A GLANCEfNVDA
PRICE CAP$120
Capped + Upside = Underlying Capped value Upside Underlying
ILLUSTRATIVE PAYOFF / PER TOKEN01
01 One deposited token02 Two matching positions03 Merge before settlementDESIGNED FOR ROBINHOOD CHAIN
01 / THE MECHANISM
A different way to
hold the same asset.
Each position describes a different part of the stock’s value at settlement. Together, they add back up to the underlying.
POSITION B / UPSIDE
Everything above it.
The upside position receives the value above K. If the stock finishes at or below the cap, this position settles at zero.
UPSIDE VALUEmax(S − K, 0)
S is the stock price at settlement. K is the cap.02 / EXPLORE THE SERIES
Choose your underlying.
UNDERLYINGREFERENCE PRICECAP / KTERM
Fictional prices for exploring the mechanism. These tokens do not represent issued securities or ownership in the named companies.
03 / FROM ONE TO TWO
Two positions.
One underlying.
DEPOSIT1 stock token
→
Series vaultCapped 1
Upside 1
In the proposed mechanism, a vault holds the underlying while the two positions circulate. Before settlement, returning one of each from the same series releases one original token.
04 / FINDING A PREMIUM
Let the auction
set the price.
The proposed monthly auction brings upside sellers and buyers into one session. Sellers set a reserve. A descending clock moves toward a price where demand meets supply.
One clearing price for filled orders. This preview illustrates the clock; it does not match real orders.
AUCTION PREVIEWREADY
PRICE PER UPSIDE POSITION$12.00
$12.00 START$4.00 RESERVE
DEMO SUPPLY100 positions
DEMO DEMAND20 positions
Press run to watch a sample auction reach its clearing price.
05 / FIELD NOTES
Before you split.
The details behind the design.
Is Folium live on testnet?+
This is an interactive frontend for a proposed Robinhood Chain testnet protocol. The balances, prices, splits and auctions are simulated in your browser. No contracts are deployed or connected.
How are the two positions valued?+
At settlement, capped value is min(S, K) and upside is max(S − K, 0). Their sum equals S. These are settlement payoffs, not current trading prices. Fees, oracle design and final contract terms remain to be specified.
What happens if the stock falls?+
The capped position falls with it. The upside position settles at zero when S is at or below K. A capped position does not guarantee principal or a return.
Can I merge after selling one position?+
You need equal quantities of capped and upside positions from the same series to merge before settlement. After selling one side, you would need to acquire that side again.
What still needs to be built?+
The vault contracts, stock-token integration, wallet signing, oracle and settlement system, auction matching and security review. The demo establishes the interface and payoff model only.
See where the
value divides.
No wallet required. No real funds.