SPLICE
Two books, one margin.
A portfolio-margin and clearing protocol for tokenized stocks on Robinhood Chain, so the hedge you hold on one venue counts against the risk you carry on another.
01The problem
Your hedges don't count.
Long here.
Spot Stock Tokens sit in your wallet.
Short there.
A perp position on another venue.
Margined twice.
Every venue sizes risk as if that position were your only one, so your collateral is locked against a risk you already cancelled out.
And when it moves, the bot liquidates one leg and leaves you naked on the other.
02How it works
One account behind every venue.
Open one margin account.
Deposit USDG or Stock Tokens as collateral, with per-asset haircuts.
Venues register positions.
Integrated venues register your positions with Splice instead of holding your collateral. Splice becomes the counterparty of record.
One requirement.
One requirement is computed across the whole portfolio. Offsetting positions release capital instead of consuming it.
03The risk engine
Scenarios, not flat LTVs.
A flat loan-to-value ratio treats every position as a stranger to every other. Splice does not use one. It reprices the whole portfolio against a grid of scenarios: the broad market moves, the sector moves against it, and every instrument is revalued through its factor exposures.
The worst cell on the grid is the scenario loss. Add the idiosyncratic charge and the add-ons and you have the margin requirement. A hedge that works in the worst cell lowers it. A hedge that only works on paper does not.
Demo portfolio, USDG notional
- LONG NVDA 100,000
- SHORT AMD 60,000
- LONG MSFT 50,000
- SHORT TSLA 40,000
Sector axis: SEMIS
Requirement 25,085 USDG vs 50,000 isolated
Illustrative parameters, not live data. Cells show factor P&L. The idiosyncratic charge and add-ons do not depend on the scenario, so they are added once on top of the worst cell.
Factors
Instruments are decomposed into market, sector and idiosyncratic factors.
Idio shock
Idiosyncratic shock is 3x EWMA realized vol, with a floor of 8%.
Add-ons
Add-ons for concentration, liquidity vs ADV, short recall risk and record-date proximity.
04Market hours
Chains run all night. Stocks don't.
A tokenized stock trades on-chain at three in the morning, but its price discovery still happens on an exchange with a bell. Splice separates the two jobs. Measuring risk is continuous. Acting on it is not.
24/7
Margin never sleeps.
Requirements are recomputed around the clock, on every oracle update and every position change.
Open + fresh
Close-outs wait for the bell.
A close-out only runs when the underlying venue is open and the oracle is fresh. Nobody is sold into a market that is not there.
Gap add-on
The grid widens overnight.
While the real market is closed, scenarios widen by a gap add-on, so the account already holds margin for the open.
Halts
Halted names freeze.
A halted name is frozen and marked at worst case until it trades again. It cannot be closed out, and it cannot flatter the book.
05Close-out by auction
Sold whole, not leg by leg.
A failing account is not liquidated leg by leg. The whole portfolio is auctioned as one package in a 2-minute sealed-bid, uniform-price auction to registered clearing members, who bid a discount to oracle NAV.
The winner takes the positions and their hedges together, so the hedge keeps doing its job through the transfer. Any surplus returns to the user.
01
Breach detected
Equity falls below the portfolio requirement.
02
Watch state
No new risk. The account can only reduce or hedge.
03
Top-up window
The user can add collateral and cure the breach.
04
Auction at open
Two minutes, sealed bids, one uniform price.
05
Settlement
Winner takes the package. Surplus returns to the user.
06Default waterfall
Who pays, in what order.
If an auction clears below what the account owes, the shortfall moves down a fixed sequence. Each tier is exhausted before the next is touched.
- 01
Defaulter's margin
The failing account pays first.
- 02
Defaulter's guarantee-fund contribution
Then its own share of the fund.
- 03
Protocol skin-in-the-game
Splice loses before anyone else does.
- 04
Staked $SPLC guarantee fund
Stakers are slashed at this tier.
- 05
Capped assessment on clearing members
Bounded, known before joining.
- 06
Capped, pre-declared partial tear-up
The last resort, with a published limit.
Published in advance. Sized on-chain. Readable by anyone.
07Simulator
Run your own book.
Build a portfolio and compare what separate venues would lock up against what one portfolio requirement would. The math runs in your browser and is published in lib/margin.ts.
Simulation only. No contracts are deployed and no transaction is ever signed.
Loading simulator
08Token
$SPLC
$SPLC is not live yet. It will be launching soon.
Staking
Staking $SPLC funds tier 4 of the default waterfall. Real risk, real yield: stakers are slashed when the waterfall reaches them.
Clearing fees
0.5–1.5 bp per day on financed margin, plus 2 bp on close-out auctions.
- 70%
- Guarantee stakers
- 20%
- Buy and burn
- 10%
- Treasury
Governance
Governance over instrument onboarding, shock parameters and venue adapter whitelisting.
09FAQ
Questions, answered plainly.
A margin requirement computed on the whole portfolio instead of position by position. Splice reprices every position together under a grid of market and sector shocks and asks for the worst-case loss. Positions that offset each other lower the requirement instead of adding to it.