Forticoin: how we hedge crypto volatility
Forticoin is an open-source token concept that bundles a base asset (e.g., BTC/ETH) with a protective put option on the same asset and in the same size. The goal: limit downside while keeping upside — a safer, more predictable way to hold crypto.
Not financial advice. This post is a research/engineering concept for risk-managed exposure.
The problem we solve
Crypto is volatile. Long-term holders and DeFi borrowers face drawdowns and liquidations. Traditional hedging (rolling options) is complex, operationally heavy, and easy to get wrong.
The idea in one line
1 Forticoin = 1 base asset + 1 put option (same asset, same notional, configurable expiry).
You pick a Forticoin series by expiry (e.g., 3/6/12 months). The put sets a floor under your position, capping losses while preserving upside (minus option premium decay).
A worked example
- Date: Sep 1, 2025
- Buy: 1 BTC @ $109,000
- Buy put: strike $110,000, premium $13,600, expiry Jun 26, 2026
- Position value at inception: BTC + put = $122,600
Two scenarios:
- BTC drops to $80,000 → Forticoin ≈ $95,400–$95,700 (depends on time value of the put).
- BTC rises → Forticoin ≈ BTC price + residual put value (time/IV dependent).
You can close part or all of the position anytime.
Why it matters (use cases)
- Long-term investing: reduce downside risk without abandoning upside.
- DeFi collateral: minimize liquidation risk for mid/long-term loans.
- Predictable payments: lock in floors for future-dated invoices/contracts.
Design sketch (MVP)
- ERC-20 wrapper that represents (asset + hedge metadata)
- Option sourcing: on-chain protocol or brokered settlement with robust oracles
- Pricing: mark-to-market via reliable feeds; transparent fees
- Series: multiple expiries/underlyings (BTC, ETH, etc.)
Roadmap (draft)
- Architecture & tokenomics notes
- Solidity prototype (ERC-20 wrapper + metadata)
- Testnet experiments with options/oracle integration
- Risk/PnL simulations & public docs
- Security review → Beta
How to get involved
- ⭐ Star the repo, open issues, propose ideas
- Contribute to docs, research, or contracts
- Donate to support development
GitHub: https://github.com/USERNAME/FORTICOIN
Sponsors: https://github.com/sponsors/USERNAME
Crypto donations (ERC-20, Ethereum mainnet): 0x4980e54c0501296e1f60AAF1d71f0FAc30e5145F
License: Apache-2.0. We welcome contributions via PRs and issues.
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