Rules of the house

Fund House is a factory for on-chain funds. Each fund is a single ERC-20 token that stands for a fixed basket of tokenized stocks: real equities, issued as tokens on Robinhood Chain by third parties, held by the fund contract. Fund House puts a basket together, lists it, and gets out of the way.

The house takes nothing from a fund’s performance and nothing from the fee. Its income, if any, is whatever value the $HOUSE coin carries; the coin’s only use is to waive the fee for those who stake it and to receive the fee everyone else pays.

A fund is one ERC-20 token. Behind it is a list of stock tokens with a target weight each, summing to 100%, and a Chainlink price feed for each. That list, the weights and the feeds are set when the fund is created. The list and the weights can never be changed afterwards, by anyone.

Every share is backed by tokens the fund contract actually holds. The contract owns the stock tokens outright; it does not lend them, wrap them or promise them. There is no way to mint a share without first buying the underlying, and no way to remove a token from the fund except through a sale that burns shares.

A fund does not rebalance. As prices move, actual weights drift away from the targets and nothing trades them back. The drift is the fund’s return. The target weights are used for one thing only: to split an incoming payment when someone buys.

You can pay in USDG or in ETH. Whichever you choose, the same thing happens:

1. ETH, if that is what you paid, is swapped to USDG first.
2. The fee is set aside: 1% of the USDG, or nil if your wallet is a qualifying staker (§7).
3. The rest is split by the target weights and each portion is swapped into its stock token, on-chain.
4. For each stock, the fund credits you the lower of two figures: what it spent, and what the tokens it received are worth at the Chainlink mark. This is the conservative mark. Any slippage on the way in is yours, never the other holders’.
5. You are minted shares at the fund’s NAV per share, measured just before your buy, for the value credited. The first share ever minted in a fund is worth exactly $1.00.

When you pay in USDG the coupon shows a preview of the shares you will receive. When you pay in ETH the amount depends on the swap and is settled at execution. In every case you may set a minimum number of shares; the coupon sets it 1% below the preview and the order fails rather than fill below it.

A buy is refused in two cases: the house has paused buys on that fund, or one of the fund’s price feeds has not updated within the fund’s maximum feed age. Neither case affects selling.

You hand back shares. The contract burns them, works out your fraction of the fund, and sells that fraction of every holding, plus your fraction of any idle USDG, to USDG in the same transaction. The fee, 1% or nil, is taken from the proceeds and the rest is sent to you.

A sale is arithmetic on balances. It consults no oracle, so it works when a price feed is stale. It has no pause switch, so it works when buys are paused. There is no function, held by anyone, that can stop a holder from selling.

You may set a minimum USDG to receive; the coupon sets it 1% below the preview. Large sales move thin pools, and the preview is a spot estimate, so on a large order you may prefer to set the minimum yourself or to sell in parts.

Net asset value is the sum of each holding multiplied by its Chainlink USD mark, plus any idle USDG held by the contract. NAV per share is that figure divided by shares outstanding. Both are public functions on the fund and can be read at any moment; what is printed on this site was read when the page loaded.

Each fund has a maximum feed age. If a feed’s last update is older than that, the fund treats the mark as stale and refuses buys until the feed updates, because minting shares against a stale mark could dilute existing holders. Sells are not affected, because they do not use the mark.

Idle USDG appears from rounding when a payment is split across the basket. It is counted in NAV at $1.00 and is paid out pro rata on sales.

Every buy and every sell carries a fee of 1% of the order at issue. On a buy it is taken from the USDG before investment; on a sale it is taken from the USDG proceeds. It is waived in full for wallets that qualify as stakers of $HOUSE (§7).

The fee is forwarded, in the same transaction, to the staking contract, which distributes it to stakers in proportion to their stake. The house does not receive it. If no one is staked when a fee arrives, it is held and distributed the moment someone stakes.

A fund’s fee can only go down. The house may lower it; it can never raise it above the level the fund launched with, and no fund can launch above 3%.

$HOUSE has not been issued yet. It will be launched on Pons, a launchpad on Robinhood Chain, and this article will carry the token address the day it is. Until then every fee the funds collect is held in the staking contract for the first wallets that stake.

Stake $HOUSE in the staking contract and two things follow: your fee on every fund becomes nil, and you receive a share of the fee everyone else pays, in USDG.

To qualify for the waiver you must hold at least the minimum stake and have held a stake continuously for the qualifying period. Both figures are set by the house and printed on the $HOUSE notice. The clock starts when you first stake from zero. Withdrawing below the minimum ends the waiver until you top back up; withdrawing everything resets the clock.

Rewards accrue continuously as fees arrive and are claimable at any time. There is no lock-up: unstake any amount whenever you like. Rewards already earned stay claimable after you unstake. The house has no privileged position in the staking contract and cannot take from the pool; it may change the minimum and the qualifying period.

The house is the owner of the factory. Through it, the house may:

• create and list new funds;
• pause buys on a fund, and unpause them;
• lower a fund’s fee;
• replace a price feed for a holding, or the swap router, if a venue breaks;
• set a fund’s maximum feed age;
• set the staking minimum and qualifying period.

The house cannot, because no function exists that would let it:

• change a basket or its weights;
• withdraw, lend or move any holding;
• mint shares;
• pause, block or delay a sale;
• raise a fee;
• take any share of NAV or of the fee.

Four contracts make up the house. The factory creates funds and holds the house’s powers. Each fund is its own ERC-20 and holds its own tokens. The staking contract holds staked $HOUSE and pays out fees. The swapper routes swaps to on-chain pools and can be replaced if a venue fails.

Factory

0xa307277dd0F287700F67C0038FB53C6fC3b6b195

Staking

0xEF6684B5CB4410b8733Bd953A386d5622c03BCb6

$HOUSE

not yet deployed

USDG

0x5fc5360D0400a0Fd4f2af552ADD042D716F1d168

Every fund emits Bought and Sold events with the amounts, the fee and the shares; the staking contract emits Staked, Unstaked, RewardPaid and RewardNotified. Anyone can index them.

• Stock tokens are issued by third parties. Their backing, redemption and legal standing are outside this protocol. A fund holds the tokens; it cannot vouch for them.
• Pools can be thin. Buys and sells are filled against on-chain liquidity. A large order moves the price, and that cost is the orderer’s.
• Feeds follow market hours; pools do not. Chainlink equity feeds update 24/5 and rest from Friday close to Monday open, while the pools trade all weekend. A buy on a Saturday is credited at the lesser of Friday’s mark and what was paid, so a buyer can never be over-credited, but the published NAV can lag the pools until the feeds resume. A feed older than four days blocks buys entirely. Sells never read a feed.
• Corporate actions. Stock tokens carry a multiplier (ERC-8056) that changes on splits and dividends; the raw balance in the fund does not. The Chainlink mark already prices the multiplier in, and a fund holds tokens, not shares, so a split changes nothing a holder owns. During an action the issuer may pause its oracle; buys wait, sells do not.
• USDG is a regulated stablecoin. Its issuer can freeze or burn balances at any address under its policy, and transfers can revert for reasons that have nothing to do with the fund. The house has no say in this.
• Smart contracts can have bugs. The contracts are small and open; they have not been formally audited unless the notice on this site says so.
• Prices go down. A fund returns what its holdings return. Nothing here is investment advice.

Basket

The list of stock tokens a fund holds, with a target weight each. Fixed at issue.

Mark

The Chainlink USD price used to value a holding.

NAV

Net asset value: holdings at the mark plus idle USDG. NAV per share is NAV over shares outstanding.

Conservative mark

On a buy, crediting the lower of what was spent and what was received at the mark.

Feed age

How long since a Chainlink feed last updated. Past the maximum, buys wait.

Drift

The gap between actual and target weights that opens as prices move. Never traded away.

Waiver

The fee going to nil for a qualifying $HOUSE staker.

Qualifying period

How long a stake at or above the minimum must be held before the waiver applies.

Coupon

The order form on a fund or notice page. Nothing is held by the house; it calls the contract.