Mechanics
Trailing-stop mechanics
The formal ratchet rule, trigger condition, partial exits and re-arming rules for a Rind position.
This page states the rule Rind enforces, in plain terms and in a short formula.
Definitions
| Symbol | Meaning |
|---|---|
P_t | Reference price at observation t |
HWM_t | High-water mark after observation t |
d | Drop chosen for the position, as a fraction (0.08 for 8%) |
P_0 | Reference price at deposit |
The ratchet rule
The high-water mark starts at the deposit price and only ever moves up.
HWM_0 = P_0
HWM_t = max(HWM_(t-1), P_t)
A lower price never lowers the mark. A higher price always raises it. Only valid observations count: a price is valid if it passes the freshness and market-hours checks described in Price references.
The trigger condition
The stop fires on the first valid observation where the price is at or below the trigger level.
trigger_t = HWM_t * (1 - d)
fire when P_t <= trigger_t
With HWM_t at $180 and d at 0.08, the trigger is $165.60.
Night mode
When a position has Night mode enabled and the US market is closed, the reference price switches to a 30-minute TWAP and the drop widens by 3 points.
d_night = d + 0.03
An 8% drop becomes 11% overnight. The high-water mark is shared between day and night, so an overnight high counts. Without Night mode, no observations are taken while the market is closed. See Night mode.
Partial exits
A sale may not complete in one transaction. If filling the full size would exceed the slippage cap, the keeper sells the largest amount that fits, and the rest waits for the next execution window.
During a partial exit:
- The position stays in the fired state. It does not re-arm.
- The remaining Stock Tokens keep being sold in later windows until the position is empty.
- USDG from each fill is credited as it settles.
- You can withdraw the unsold remainder at any time if you prefer to stop the exit.
Re-arming rules
A fired position is closed. It does not return to armed if the price recovers. This is intentional: a stop that re-arms by itself would buy back risk you chose to exit.
To protect a new holding, open a new position. A new position resets the high-water mark to the current price.
| Event | Effect on the position |
|---|---|
| New high | HWM moves up, trigger moves up |
| Price falls, stays above trigger | Nothing changes |
| Price touches trigger | Stop fires, sale begins |
| Price recovers after firing | Nothing, the position is closed |
| You change the drop | New trigger from the same HWM |
| You withdraw | Position closed, tokens returned |
| You open a new position | HWM starts at the current price |
One position per token
Each wallet can hold one position per Stock Token. Depositing more of the same token adds to the existing position and keeps its high-water mark. This keeps the rule simple and the state small.