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Create a pool

Anyone can open a pool. As its creator you decide what cover it sells and at what price, you seed it with capital, and you earn 5% of every platform fee it generates. Hedgers and underwriters decide whether to use your pool from its terms and its track record.

Before you start​

  • At least 10 USDC to seed the pool, plus the 25 USDC creation fee.
  • A view on the currency: which direction you want to cover, for how long, and at what price.

Step 1: currency and capital​

  1. Select Underwriter, open Pools and select Create pool.
  2. Choose the pair, for example USD/NGN, from the pairs open for new pools.
  3. Choose the contract: an Up cover (pays if the currency weakens) or a Down cover (pays if it strengthens). Hedgers and underwriters use the same names. One pool sells one contract.
  4. Enter your initial capital, at least 10 USDC.
  5. Choose whether other underwriters may add capital.

Step 2: tenors​

For each length you want to sell:

  1. Enter the number of days (1 to 365) and select Add tenor.
  2. Set your offer: the price you charge as a share of the fair price BlockFinaX calculates, from 90% to 500%. For example 115% means you charge 1.15 times the fair price.

The app shows the fair price for each tenor at a reference strike and limit so you can compare. You can offer up to 16 tenors.

Step 3: protection​

Choose at least one structure:

StructureYou set
Limited Protection: hedgers choose a limit within your rangeThe smallest and largest distance from strike to limit, as a percentage of the strike
Open Protection: pays the whole move up to your maximumThe maximum payout, as a percentage of today's rate

And the closest strike allowed: how close to today's rate cover may start, from 0% to 50%. 0% lets hedgers buy cover starting at today's rate, which is the most likely to pay out.

Step 4: review and create​

Check the Pool summary and select Create pool. Approve with your passkey. You pay the creation fee plus your initial capital, and the pool starts selling cover at once.

See Configure parameters for how each setting changes your risk.