FAQ

Short answers, each linking to the page that treats the subject in full.

The basics

What is Blotter in one paragraph?

A pool of USDG that acts as a liquidator for loans backed by Stock Tokens on Robinhood Chain. When a loan becomes liquidatable, the pool repays the debt and seizes the collateral with the liquidation bonus. It does not sell the collateral at once. It holds it and sells it in capped tranches while the underlying stock market is open. The net premium goes to depositors, with a share for $BLOT stakers and a buy and burn. See Overview and Mechanism.

Is this insurance?

No. Blotter does not cover lenders' bad debt, accepts no claims and pays no compensation. If a loan's collateral is worth less than its debt at the print, the uncovered part remains bad debt of the lending market. What Blotter changes is how much collateral is sold into thin on-chain liquidity at the worst moment. See Liquidation flow.

Why not just sell immediately?

Because that is the problem. At the print, every liquidator sells the same token into the same shallow AMM within minutes. The price impact can exceed the liquidation bonus, at which point liquidations stop being profitable and stall. Selling later, during market hours and in small tranches, costs less slippage. The price of waiting is exposure to the stock in the meantime. See The Monday problem and Warehouse and unwinding.

Money and risk

Can depositors lose money?

Yes. The pool holds seized Stock Tokens across market closes. If that inventory gaps down by more than the premium already collected, the pool has a loss. Staked $BLOT absorbs it first. Anything beyond the stake reduces the share price, and depositors bear it in proportion. Depositors are also exposed to issuer, oracle and smart contract failures, against which the stake offers little or no protection. See Risks.

Where does the premium come from?

From the liquidation bonus that lending markets pay to whoever liquidates. It is not funded by token emissions. The pool's result on a batch of inventory is the bonus collected, minus the slippage paid when selling, plus or minus the move in the stock while it was held. When that result is positive it is split 70% to depositors, 20% to $BLOT stakers and 10% to buy and burn. When there are no liquidations, there is no premium.

What happens if the pool runs out of USDG?

It stops absorbing. The pool never spends the USDG reserved for withdrawals and never exceeds its inventory caps. Liquidations beyond its capacity stay open to ordinary liquidators, as today. They sell on the AMM, so that part of the wave still produces price impact. Capacity returns as unwind tranches bring USDG back. See Guardrails and parameters.

Can I always withdraw?

Not always immediately. A set share of the pool stays in free USDG, and withdrawals within it are immediate. Beyond it, requests enter a queue that is filled as inventory is sold. After a large wave of liquidations, the wait can be long and has no fixed upper bound. See Pool shares.

Has the code been audited?

No audit has been published. When one is, it will be linked from this site. An audit reduces the likelihood of certain bugs. It does not remove smart contract risk, and it says nothing about market, issuer or oracle risk.

The token

Is $BLOT live?

No. $BLOT is not launched and there is no contract address. Any $BLOT you see today is not ours. The address will be published only on this site and on @BlotterRH. There is no presale, no airdrop and no allocation to claim. The protocol itself is pre-launch too: no pool contract is deployed, and no parameter value has been published. See $BLOT.

What does staking $BLOT do?

Staked $BLOT is first-loss capital. It is burned to absorb the pool's losses before depositors are touched, and it receives 20% of each positive net premium in exchange. A staker can lose the entire stake. The supply is fixed and there is no admin mint. The supply figure, allocation and staking parameters are not published yet.

Site and affiliation

Does the site ever ask for a transaction?

No. The simulator only asks for a free plain-text signature, used to open a simulation account tied to your address. The signature costs no gas and moves no funds. The simulator never requests a transaction, an approval or a permit, and it uses fictional funds. If a page that looks like this site asks you to send a transaction, approve a token, sign a permit or enter a seed phrase, it is not this site. Close it. See the signature policy in Legal.

Is Blotter affiliated with Robinhood?

No. Blotter is built on Robinhood Chain. No affiliation with, or endorsement by, Robinhood, any Stock Token issuer, any exchange or any lending protocol is claimed. Third-party names appear in this documentation only to describe how public contracts and markets behave. Tickers such as $NVDA, $AAPL and $TSLA are used as examples only.