Glossary

Call strike — The price level above which upside is given up. Gains above it fund the financing; gains below it are yours.

cbBTC — Coinbase Wrapped BTC, an ERC-20 token representing Bitcoin held by Coinbase.

Collar — A structure combining bought downside protection with sold upside above an agreed level. The premium from the sold upside pays for the protection and the financing.

Collateral — The tokenised BTC you deposit, against which you borrow USDC.

Deposit window — The seven-day period at the start of each month during which a vault accepts deposits.

Financing zone — Where Bitcoin finishes above the call strike, and upside funds the financing.

LTV (loan-to-value) — The ratio of what you borrow to the value of what you deposit. Fixed at 50%.

Liquidation — The forced sale of collateral when a loan becomes undercollateralised. The Monthly Vault has no liquidation mechanism.

Margin call — A demand for additional collateral when prices move against a position. Not used in the Monthly Vault.

Maturity — The end of the twelve-month term, when repayment falls due and the collar expires.

Participation zone — Where Bitcoin finishes between the strikes, and you retain full exposure.

Premium — What an option position earns or costs. Selling upside earns premium; that premium is what makes 0% possible.

Protected zone — Where Bitcoin finishes below the put strike, and the collar's protection limits the loss.

Put strike — The price level below which downside protection applies.

Redemption window — The 7–15 day period after repayment and collar settlement, before collateral is released.

Risk isolation — Each monthly vault is independent. Vaults do not share collateral, obligations, strike levels or counterparty exposure.

Settlement — The resolution of the collar at maturity against the strike levels fixed at the start.

Tokenised BTC — An ERC-20 token representing Bitcoin on an EVM chain, such as WBTC or cbBTC. Not the same as native Bitcoin.

USDC — The dollar stablecoin you borrow and repay.

Vault — A single monthly cohort with its own deposit window, term, strike levels and maturity date.

Vault shares — Receipt tokens issued on deposit, recording what you deposited and what you can claim, repay and redeem.

WBTC — Wrapped Bitcoin, the most widely held ERC-20 token representing Bitcoin.