Legal & Risk Disclosure

Nature of the Protocol

Celestra is experimental, unaudited software for tokenized-derivative trading on Robinhood Chain. The protocol enables users to buy and write options on tokenized equities (ERC-20 tokens that track real stock prices via on-chain oracle price feeds). All contracts are fully collateralized and cash-settled against decentralized oracle prices at expiry.

Risk Factors

• Options can expire worthless — a long position can lose 100% of the premium paid.
• Short writers can be assigned and lose up to the full collateral posted.
• Smart contracts are unaudited and may contain vulnerabilities.
• Oracle price feeds may experience delays, outages, or manipulation.
• Tokenized equities may not perfectly track underlying stock prices.
• Gas costs and network congestion may affect execution.
• Regulatory changes could impact the availability of the protocol.

Collateralization

Every short option position is backed 1:1 by locked collateral in the Celestra vault smart contract. Collateral is never rehypothecated or lent out. Long premium and short collateral are locked on-chain for the duration of the contract. There are no margin calls — positions are fully funded at entry.

Settlement

Contracts settle automatically against the oracle price at expiry. There is no manual exercise required. Settlement is cash-based — the difference between strike and oracle price (for in-the-money options) is paid to the holder from the locked collateral.

Pricing

Premiums are computed using Black-Scholes with a per-name implied volatility surface, referencing the oracle spot price. A house edge of 40% is applied to premiums to capitalize the vault. Displayed prices are exactly what contracts settle against.

Restricted Jurisdictions

The Celestra interface is not available to persons in the United States, Canada, United Kingdom, Switzerland, or any jurisdiction where tokenized derivative trading is restricted. By connecting a wallet, you confirm that you are not located in a restricted region.

No Financial Advice

Nothing on this interface constitutes financial, investment, or trading advice. Options carry substantial risk and are not suitable for every investor. Trade only what you can afford to lose.

Non-Custodial

Celestra is fully non-custodial. All positions, collateral, and funds remain in your wallet and the on-chain smart contracts. The protocol does not hold, control, or have access to user funds.