The Tax
Every buy and sell pays a 5% tax, routed into three buckets:
- 3.5% → Treasury Portfolio
- 1% → Management Fee
- 0.5% → Insurance Fund
The tax is designed to continuously add value to the system while funding operations and creating a risk buffer.
The Treasury Portfolio
Treasury funds are deployed to Lighter on Robinhood Chain and used for access to a TradFi portfolio through tokenized-equity perp markets at up to 2x leverage.
- Rebalanced every hour by an automated script
- Leverage increases portfolio access per treasury dollar
- Every tax dollar adds more portfolio access
- More portfolio access can create more floor value if the portfolio rises
- 50% of all collected funds remain sticky in the portfolio
The goal is simple: taxes build the treasury, the treasury builds portfolio access, and portfolio growth can increase the Redeemable Floor Value over time.
The Floor / RFV
Redeemable Floor Value, or RFV, equals:
Treasury Value ÷ Circulating Supply
RFV can rise through two primary forces:
- Taxes add new capital to the treasury
- The treasury portfolio appreciates, increasing treasury value
As treasury value grows relative to circulating supply, each remaining token has a larger fractional claim on treasury funds.
However, RFV is only as strong as the treasury behind it. If the treasury portfolio declines, is liquidated, or suffers losses, RFV can fall. The floor is not risk-free; it is a treasury-backed redemption value based on live treasury assets, market conditions, and available liquidity.
Redemptions
Burn your $BID to receive your proportional RFV claim in USDC from the treasury.
- Processed through a redemption contract
- Settled daily at 4:30 PM EST
- Redeemed tokens are burned
- Burning tokens reduces circulating supply without selling into the open market
Redemptions are intended to let holders exit through the treasury instead of relying only on market liquidity.
Redemption Tax
Redemptions pay a 5% exit tax, routed as follows:
- 2.5% → Treasury
- 2.5% → Insurance Fund
Translation: leavers pay stayers.
Every exit removes supply, adds value back into the system, and strengthens the remaining holders' fractional treasury claim.
Redemption Limits
To protect the system from sudden treasury drains:
- Max 0.5% of total supply per wallet per day
- Max 5% of total treasury balance redeemable per day
- If the daily cap is reached, redemptions enter a queue until the next window opens
- Limits are designed to reduce cascading bank-run risk
- The Insurance Fund helps backstop redemption timing gaps and volatile rebalance periods
These limits are not just friction. They are part of the safety design.
The Insurance Fund
The Insurance Fund is built from taxes and redemption fees. It exists to absorb stress from:
- Leveraged drawdowns
- Rebalance timing gaps
- Redemption pressure
- Market volatility
- Temporary treasury liquidity mismatches
The Insurance Fund is a buffer, not a guarantee. Severe losses, liquidations, oracle issues, exchange issues, or extreme volatility can still impact treasury value and RFV.
Safety & System Risk
The Floor is designed to create a treasury-backed redemption mechanism, but it is not immune to market risk.
The treasury uses leveraged portfolio access. That means upside can compound faster, but downside can also accelerate. If the Lighter portfolio moves sharply against the treasury, RFV can decline. If portfolio entries are liquidated, the treasury can suffer major losses, and the floor can collapse.
Key risks include:
- Leveraged portfolio losses
- Lighter market volatility
- Forced liquidation risk
- Bridge or infrastructure risk
- Oracle or pricing errors
- Redemption congestion
- Treasury liquidity shortfalls
- Smart contract risk
- Operational or script failure
- Extreme market events
The floor is backed by treasury value, and treasury value moves with market performance. If the treasury loses value, the redeemable floor loses value.
Eligibility & Restricted Regions
Full participation in The Floor requires that both products behind the treasury are legally available where you are located: Robinhood Chain stock tokens and Lighter perpetuals. Today that means supported jurisdictions in the European Economic Area.
- Belgium and Hungary are excluded due to local crypto product restrictions
- The United States, United Kingdom, Canada, Switzerland, the UAE, Singapore, and comprehensively sanctioned jurisdictions are restricted
Visitors from restricted regions are not blocked from exiting. Access is limited to redemptions only, so existing holders can always redeem $BID for their treasury claim; opening or increasing positions and other trade actions are disabled. You are responsible for confirming that your participation is lawful where you are located.
Game Controls
The game operators reserve the right to pause, modify, rebalance, upgrade, or stop the game at any time if needed to protect the system, respond to market conditions, address technical issues, or prevent abusive behavior.
This may include:
- Pausing redemptions
- Adjusting redemption limits
- Adjusting leverage
- Changing portfolio composition
- Modifying tax routing
- Rebalancing treasury portfolio access
- Activating emergency protections
- Shutting down the game and distributing remaining treasury value according to the current rules
The system is designed to be transparent, but it is actively managed. Participants should understand that rules can change if the game requires intervention.
The Game
- Taxes fund the treasury
- Treasury builds leveraged TradFi portfolio access
- Portfolio gains can increase RFV
- Redemptions burn supply
- Exit taxes reward remaining holders
- Insurance helps absorb volatility
- The floor can rise as treasury backing grows
- The floor can fall if the treasury portfolio loses value
You are participating in a tax-funded, leveraged treasury portfolio with a fractional claim on treasury funds.
The upside comes from taxes, leverage, and supply reduction.
The risk is that leveraged treasury portfolio access can move against the system.
The Floor can rise. The Floor can break. Know the game.
Lighter
