Collective Writer Sleeves
Amoeba does not assign each option to an isolated writer. Calls and puts on one index and expiry share one collective writer sleeve and one canonical settlement value.
What the sleeve owns
Section titled “What the sleeve owns”A sleeve keeps four ideas separate:
| Value | Meaning |
|---|---|
Writer principal (W) |
USDC committed by Flat holders. |
Locked primary premium (B) |
Premium collected when primary auction fills are issued. |
Settlement assets (A) |
The sleeve’s accounted settlement-capable USDC. Before settlement this begins as W + B, adjusted only by explicitly permitted movements. |
Exact reserve (R) |
The maximum aggregate payout to externally held claims at any permitted settlement value. |
The hard solvency condition is:
A >= RPremium funding helps satisfy that condition because primary premium stays inside the sleeve. It never reduces the oracle-security exposure attributed to an externally held option.
Why calls and puts are pooled
Section titled “Why calls and puts are pooled”At one settlement value, a capped call and a capped put do not both reach their maximum payout. A collective book can recognize that shared-settlement geometry without assuming a probability distribution or relying on liquidation.
Spread computes the exact aggregate liability at a bounded canonical set of settlement points and keeps the greatest value. It does not use $12 x max(call count, put count) as a production shortcut. That clean-pair identity is useful only as a test example.
The current V1 bounds are:
- 32 stored series records;
- at most 20 live series;
- at most 128 canonical reserve candidate points;
- at most 128 funded auction bids.
These bounds keep reserve recomputation deterministic and on-chain.
External open interest only
Section titled “External open interest only”Reserve and security accounting count claims held outside canonical issuer custody. Unsold or returned issuer-controlled inventory is not an external claim.
Third-party market-maker inventory remains external. A transfer between ordinary users does not change external open interest. A custody transition that truly retires a claim must update open interest, reserve, and security exposure together.
One settlement group
Section titled “One settlement group”Every series registered in a sleeve is cryptographically bound to the same underlying, expiry, oracle methodology, product and source commitments, signer set, settlement timestamp, and final settlement price.
That shared settlement group is what makes call-put netting valid. A series-specific alternative settlement value cannot be substituted at claim time.
Authority boundary
Section titled “Authority boundary”Lean computes policy, previews, deterministic plans, and explanations. The SDK reconstructs the exact current instruction bytes, accounts, and observations. Spread independently recomputes or verifies every value that changes assets, supply, open interest, reserve, or settlement liabilities.
Neither the website nor Petri contains an independent reserve or payout engine.