Covered call

The vault writes calls against your tokenized shares and streams the premium to you per second.

A covered call pairs a share you own with a call option you sell on it. You collect premium now. In exchange, if the price closes above the strike, your share is called away at the strike and you give up the upside beyond it.

Payoff at expiry of one share plus one written call. Premium lifts the line; the strike caps it.

Share + written callShare alone

Payoff shape at expiry · not to scale

What the vault does#

Holds your tokenized shares as collateral. The share itself is the collateral for the written call.
Writes calls against them, with automatic strike selection and rolling.
Chooses strikes and expiries from rules published on-chain for this vault, fixed for each epoch.
Streams the premium to you per second over the life of each option.

Outcomes at expiry#

Price at expiry	What happens
Below the strike	The call expires. You keep your shares and all premium streamed so far.
Above the strike	The call is exercised. Your shares are delivered at the strike, and you keep the premium.

Why it can't be liquidated#

The written call is fully covered by the share it is written on. There is no borrowed amount and no margin call. The worst outcome, giving up upside above the strike, is known before you deposit.