Protocol
CARRY
The income leg: USDG in, weekly coupons out, stock at S0 on a breach.
Position
A CARRY leg is an ERC-1155 balance in BarrierLegs, denominated in USDG notional. Holding it entitles the holder to coupons and to the maturity payout.
Cash flows
| Event | CARRY receives |
|---|---|
| Observation ≥ barrier | coupon × notional, less the 20% coupon fee |
| Autocall | Notional in USDG |
| Maturity ≥ barrier | Notional in USDG |
| Maturity < barrier | notional ÷ S0 Stock Tokens |
Accrual accounting
Coupons accrue per unit of leg, so a transfer between observations moves future coupons with the leg while past accruals stay with the sender until claimed.
Example
5,000 USDG on an AAPL series at 0.40% earns 20 USDG gross, 16 net, at each paid observation.
Redemption
After settlement, redeem(seriesId, units) burns the leg and pays cash or stock.
Refund
If CARRY was oversubscribed, the unmatched part is refundable in USDG right after strike.
Risk summary for CARRY holders
- Receiving stock worth less than the deposit after a breach.
- Missed coupons in weeks below the barrier.
- Stock Token and USDG issuer risk.
- Smart contract risk.