Sell yesterday

In the sell direction, the Contract seller provides BTC. It is converted to USDC at execution. The Contract buyer adds a positive USDC payment. Both sides settle in USDC.

The flow

1. The seller chooses a BTC reference size and order terms.
2. Their BTC is converted to USDC when the order executes.
3. If this is a contract fill, the buyer adds the Contract price.
4. Those USDC funds are locked for that fill.
5. Tomorrow’s average decides the split.

For a 1 BTC size, if conversion returns 76,000 USDC and the buyer adds 1,000 USDC, the funded maximum is 77,000 USDC.

At settlement

If tomorrow’s average is at or below yesterday’s reference, the seller receives all funded USDC. The buyer receives zero.

If tomorrow’s average is above yesterday’s reference, the buyer receives an amount based on the increase and the fill’s Split rate. The seller receives the rest.

The buyer’s payout stops at the total funded amount. If it reaches that cap, the seller receives zero.

When this direction is allowed

Sell contracts can fill when the execution price is below yesterday’s reference. They can also fill slightly above it, but only when the gap is strictly below 0.5%.

At an execution price exactly 0.5% above the reference, sell contracts are no longer eligible. A waiting limit order keeps its sell direction. See the exact boundary.

A target may become a direct swap

If the seller uses a target and conversion alone meets it, all conversion output goes straight to their available balance. There is no contract and no buyer payment. This check happens before contract eligibility. Read about direct swaps.

What the seller is giving up

After a contract fill, the original BTC has already been converted. The seller has a conditional claim on the locked USDC, with no early exit. Their final receipt may be less than the value of a plain sale at entry, or zero.

See the sell example with several settlement prices.