🐦 Seagull

The Seagull strategy provides a downside buffer with levered upside participation (subject to a cap) on the Underlying Asset.

Users will need to deposit a cash token (e.g. USDC) into the vault. The Strike price for the vaults are mathematically and/or algorithmically (wherever supported by oracle data) selected to optimize the user’s position.

At expiration:

Upside Participation (Levered):

Using 1.5x levered upside as an example, if the Underlying Asset appreciates, the strategy will pay 1.5% for every 1% of the Underlying Asset’s returns, up to a Cap.

Downside Participation (With a Buffer):

Using 10% buffer as an example, the investor does not participate in declines in the Underlying Asset’s price within the buffer range (0 to -10%). If the Underlying Asset falls by more than -10%, the investment’s value could potentially decline to 0 if the Underlying Asset’s price declines to 0.

The vault auto-rolls the invested notional (including any premiums received/withdrawn as applicable) into the next vault at the end of every settlement cycle.

Risk Level: 🔥🔥🔥 / 5 (Moderate)