Overview
How it works
The Rind vault, the high-water mark, drop tiers, the keeper trigger and settlement to USDG, with a worked example.
A Rind position has four parts: a vault that holds your Stock Token, a high-water mark that only moves up, a drop you choose, and a keeper that executes the sale. The result settles in USDG, credited to you.
The vault
You deposit a Stock Token into the Rind vault contract. The position is recorded against your wallet and that token. There is one position per Stock Token per wallet. If you hold NVDA and AAPL, you can run two positions.
You keep custody through the contract. Only your wallet can withdraw the position. Withdrawal is free and available at any time, as long as the stop has not fired.
The high-water mark
When you deposit, the high-water mark is set to the current reference price. From then on, every new price is compared to it. If the price is higher, the high-water mark moves up. If the price is lower, it stays. It never moves down.
Drop tiers
The drop is the distance from the high-water mark at which the stop fires.
| Drop | Trigger at a high of $100 | Who can use it |
|---|---|---|
| 3% | $97.00 | $RIND stakers only |
| 5% | $95.00 | Everyone |
| 8% | $92.00 | Everyone |
| 12% | $88.00 | Everyone |
| 20% | $80.00 | Everyone |
A tighter drop protects more of the gain but fires more often on normal noise. A wider drop gives the price more room. You can change the drop on an open position.
The keeper trigger
Keepers watch every armed position. When the reference price touches or crosses the trigger level, a keeper submits the sale. The contract checks the price itself before it accepts the call, so a keeper cannot fire a stop that has not been hit. See Keepers.
Settlement to USDG
The keeper routes the sale to the best available venue, with a slippage cap. The USDG proceeds, minus the 0.20% exit fee, are credited to your position. You withdraw them like any other balance. If slippage would exceed the cap, the vault fills partially or waits for the next window. See Execution and slippage.
Worked example
You deposit 10 NVDA Stock Tokens when the reference price is $120. You pick an 8% drop.
| Step | Price | High-water mark | Trigger (HWM × 0.92) |
|---|---|---|---|
| Deposit | $120.00 | $120.00 | $110.40 |
| Rally | $150.00 | $150.00 | $138.00 |
| Peak | $180.00 | $180.00 | $165.60 |
| Pullback | $172.00 | $180.00 | $165.60 |
| Trigger hit | $165.60 | $180.00 | $165.60 |
At $165.60 the stop fires. Assume the sale fills at the trigger price.
| Item | Amount |
|---|---|
| Gross sale (10 × $165.60) | 1,656.00 USDG |
| Exit fee (0.20%) | 3.31 USDG, about $0.33 per token |
| Net to you | 1,652.69 USDG |
| Cost basis (10 × $120) | $1,200.00 |
| Gain kept | 452.69 USDG |
If you had done nothing and the price fell to $150 by morning, the position would be worth $1,500. The stop kept 152.69 USDG more than holding through the slide.
This example assumes a fill at the trigger. In a fast market the price can gap through $165.60 and the sale will fill lower. A trailing stop is a trigger, not a guaranteed price.