How to protect Stock Tokens
over the weekend.

Stock Tokens trade around the clock, but the stock markets behind them close for the weekend. News keeps coming, so a token can open Monday well below Friday's close once the real market reprices it.

A basket of Stock Tokens carries the same risk: it trades all weekend, and on Monday it catches up with whatever happened while its markets were shut.

Weekend Cover is protection for a basket you hold against a drop between Friday's close and Monday's open, bought from other people on bskts. You pay a premium; if the basket falls into the range you chose, you are paid the loss inside that range. Two sides meet on a market: a buyer pays a premium, an underwriter locks the money that pays out, and the CoverMarket contract holds both, records the prices and pays whoever is owed. bskts sets no prices and takes no side.

Cover protects an amount of a basket over a range of the drop and pays the loss inside that range. Protect $10,000 of a basket from −3% to −10%:

• Small dips too: −2% to −7%
• Standard: −3% to −10%
• Big crashes only: −5% to −15%
• Nearly everything: −0.5% to −10%

Any range on the contract’s grid can be offered: steps of 0.5%, starting at −0.5% or lower, at least 1% wide and ending no lower than −30%. The smallest cover is $10. A shallower start pays on smaller dips, and costs more.

1. Buy until 10 minutes before the last US close of the week, for this weekend or up to 2 more ahead.
2. Friday’s close: each holding’s price is recorded.
3. Locked over the weekend: nothing trades, so nobody can buy cover on news that is already out.
4. Settle 30 minutes after the next open, once the opening auction is done and the pools have caught up. Monday’s prices are recorded and every cover is paid its share, straight to your account.

The move is the basket’s holdings at its target weights, each one’s Monday price against its Friday price. Every price is that token’s own Uniswap pool on Robinhood Chain, a time-weighted median over the ten minutes before the moment; no external feed is used.

Each price must be recorded within 15 minutes of its moment. If one is missed, or a holding can't be priced, that basket's weekend is void and everyone gets back exactly what they paid in, fee included. Nobody can change a recorded price or an outcome, or the terms of cover already sold.

• For what you hold. Your cover on a basket for a weekend can’t be more than your units are worth when you buy. You can sell the basket afterwards and still be paid.
• From your bskts account. Turn cover on once with one signature; after that it buys like a trade, with the gas paid for you. A session may pay at most 3% of the cover in premium and fee.
• Payouts arrive by themselves as soon as a weekend settles.

Every cover is backed by an underwriter, who locks the money before anyone buys it. An underwriter offers cover at their own price and locks only what it could pay: the range’s width times the cover, $700 for $10,000 of the Standard range. When the weekend settles they get back whatever the drop didn’t take, plus the premium, and an offer can roll into the next weekend.

Underwriting is selling crash insurance: small premiums most weekends, and rare, large payouts that tend to come together. Every cover is fully funded, so an underwriter can lose everything they lock.

• The premium, set by the underwriter whose offer you take.
• 1% of the premium on each trade, paid by the taker, to the bskts treasury.
• No gas from a bskts account: it is paid for you.

New to baskets? Start with how to trade baskets. Rather bet on a basket falling than insure against it? Basket perps let you go short. And yield baskets earn trading fees on the stocks they hold.

Why do Stock Tokens gap over the weekend?

Stock Tokens trade around the clock, but the stock markets behind them close for the weekend. News keeps coming, so a token can open Monday well below Friday's close once the real market reprices it.

What is Weekend Cover?

Weekend Cover is protection for a basket you hold against a drop between Friday's close and Monday's open, bought from other people on bskts. You pay a premium; if the basket falls into the range you chose, you are paid the loss inside that range.

Who pays out if the basket drops?

An underwriter, who locked the full amount the cover could pay before you bought it. A smart contract holds both sides' money and pays by fixed rules; nobody, bskts included, can move it.

What happens if a price can't be recorded?

That basket's weekend is void and everyone gets back exactly what they paid in, fee included. A price is never taken late.

Is bskts part of Robinhood?

No. bskts is an independent project built on Robinhood Chain. It is not affiliated with, endorsed by, or officially connected with Robinhood Markets, Inc.