Documentation

1. Overview

A buyer pays a one-time premium in SOL to the Protec settlement wallet. In return, Protec pays a fixed amount of SOL if the price of the covered token falls by the chosen percentage within the chosen time window. A settlement service monitors prices, issues receipts and sends payouts and refunds from the same wallet. No custom on-chain program is involved: every transfer is a standard System Program transfer accompanied by a Memo instruction that records the terms.

Terms

Cover

A contract that pays a fixed amount of SOL if the covered token's price falls to the trigger price within the coverage window.

Premium

The one-time payment in SOL for cover. It is not refundable once cover has started.

Covered value

The USD value of the covered tokens at the time of the quote.

Trigger

The percentage price drop that activates the payout, from 3% to 50%.

Payout

Covered value multiplied by the trigger percentage, converted to SOL at the time of purchase and fixed from then on.

Start price

The policy price at the moment cover starts.

Trigger price

Start price × (1 − trigger percentage).

Coverage window

The period during which a qualifying drop pays out, from 30 seconds to 24 hours.

Confirmation period

How long the price must stay at or below the trigger price before cover triggers: 10% of the window, with a minimum of 10 seconds and a maximum of 60 seconds.

Policy price

The higher of the DexScreener and Jupiter prices for the token at a given moment.

Settlement wallet

The public wallet that receives premiums and sends receipts, payouts and refunds.

2. Eligibility

• Token. Any SPL token (Token or Token-2022 program) with a live market on DexScreener is eligible. This includes pump.fun coins still on the bonding curve, coins that have graduated to PumpSwap, and tokens trading on Raydium, Orca, Meteora and other Solana pools. Stablecoins and wrapped SOL are excluded.
• Liquidity. The token must have at least $5,000 of liquidity. For a pump.fun token still on its bonding curve, liquidity is derived from the curve: virtual SOL reserves = √(market cap in SOL × 32.19), and liquidity = 2 × virtual SOL reserves × the SOL price.
• Holdings. The wallet that pays the premium must hold at least the number of tokens being covered, in its associated token account for that mint.
• Price data. A live price for the token must be available from DexScreener when the quote is made and when the payment is processed.

Availability by token age and market cap

Token age is measured from the token's creation: the earlier of its oldest pool on DexScreener and the creation time reported by Jupiter. The table lists the coverage windows offered in each bracket.

Available triggers: 10% to 50% below $35K market cap, 5% to 50% from $35K to $1M, 3% to 50% from $1M to $10M, and 3% to 30% above $10M.

3. Buying cover

1. Load a token. Connect a Solana wallet that supports the Wallet Standard (Phantom, Solflare, Backpack and others) to list the tokens it holds, or paste a token address to see pricing without connecting.
2. Configure the cover. Choose the share of your balance to cover (10% to 100%), the trigger and the coverage window.
3. Review the quote. The quote shows the premium, the payout, the trigger price and the confirmation period. Quotes refresh every 10 seconds and remain valid for 60 seconds.
4. Approve the transaction. Your wallet signs a single transaction with two instructions: a SOL transfer of the premium to the settlement wallet, and a Memo instruction that carries the cover terms.
5. Receive the receipt. The settlement service re-prices the cover against live data, checks your holdings and the available capacity, and either starts the cover or refunds the payment. Cover starts 10 seconds after the payment is detected, and a receipt transaction is sent to your wallet.

Active and past cover for the connected wallet is listed under "Your cover" on the quote page, with the live price, the trigger price and the time remaining.

4. Pricing

premium = max( P × payout × markup,  0.5% × payout,  0.002 SOL )

P is the estimated probability that the policy price reaches the trigger price within the coverage window. The markup is set by the token's bracket in the pricing grid.

Probability model

P combines a continuous component and a jump component:

P1 = 2 · N( ln(1 − d) / √V )        (continuous price movement)
P2 = 1 − exp( −H · (1 − d)^γ )      (sudden sell-offs)
P  = 1 − (1 − P1) · (1 − P2)

where d is the trigger percentage and N is the standard normal distribution. V is the price variance accumulated over the window and H is the accumulated hazard of a sudden sell-off. Both depend on the token's market cap, its age and its recent price action. The recent move rate is calculated from the 5-minute, 1-hour and 6-hour price changes:

r = max( |ln(1 + Δ5m)| / √300,  |ln(1 + Δ1h)| / √3600,  |ln(1 + Δ6h)| / √21600 )

Volatility is the larger of a floor for the token's market-cap bracket and a fixed multiple of r. Young tokens carry additional volatility and sell-off hazard that decay exponentially with age. All parameters are fitted by maximum likelihood to minute-level price history of Solana pools, from pump.fun bonding curves to established large caps.

Pricing grid

The markup depends on the token's age bracket and market-cap bracket. Markups were calibrated against historical price data. The house margin is highest on the youngest and smallest tokens. Within the grid, a bracket never carries a lower markup than an older or larger one.

Premium bounds

• The minimum premium is 0.002 SOL or 0.5% of the payout, whichever is greater.
• No quote is given if the premium would exceed 60% of the payout.
• The minimum payout is $2.

Quote validity

A quote is valid for 60 seconds. When the payment arrives, the settlement service prices the same cover again with its own market data. The payment is accepted if it is at least 92% of that price; otherwise it is refunded with reason price.

5. Settlement

Price source

The policy price is the higher of the DexScreener price of the token's deepest pool and the Jupiter Price API price. It is checked every 2 seconds. The same rule sets the start price and decides whether the trigger is met. If a token graduates from its bonding curve during the window, the price follows its new pool.

Start of cover

Cover starts 10 seconds after the settlement service detects the confirmed payment. The start price is the policy price at that moment, and the trigger price is the start price × (1 − d). The service then sends a receipt to the buyer: a transfer of 0 SOL with a memo that records the start price, the trigger price, and the start and end times.

Trigger condition

Cover triggers when the policy price is at or below the trigger price on consecutive checks that span at least the confirmation period. The first of those checks must fall inside the coverage window; the confirmation period may end after the window closes. If the price recovers above the trigger price before the confirmation period is complete, the condition resets.

Payout amount

When cover triggers, the settlement service reads the paying wallet's balance of the covered token. If the wallet holds at least the covered amount, the full payout is sent. If it holds less, the payout is reduced in proportion. If it holds none, no payout is made.

Payout transaction

The payout is a SOL transfer from the settlement wallet to the paying wallet, with a memo that references the original payment. Each settlement transaction is signed once and re-broadcast unchanged until it confirms or its blockhash expires, so a payout cannot be sent twice.

Expiry

If the coverage window ends without the trigger condition being met, the cover expires and the premium is retained. No transaction is sent on expiry.

Data outages

If price data is unavailable for more than 20% of the coverage window (and for at least 60 seconds), the premium is refunded when the window ends.

6. Limits and capacity

• Per-token limit. Total open payouts on one token may not exceed f × L × (1 − √(1 − d)), where L is the token's liquidity and f is the trading fee per trade: about 1% on the pump.fun bonding curve and about 0.25% on pools. This equals the fees a trader would pay to push the price through the trigger and buy back, so manipulating the price to collect a payout costs more than the payout.
• Per-cover limit. A single cover may pay at most 10% of the settlement wallet's free balance (the balance minus open payouts and a 0.02 SOL reserve).
• Collateral. Every cover is backed by SOL already held in the settlement wallet. Payments that would exceed the available capacity are refunded.

7. Refunds

A payment that cannot be accepted is returned to the paying wallet, less 0.0001 SOL to cover network fees. The refund memo carries one of the following reason codes.

8. On-chain records

Every premium, receipt, payout and refund moves through the settlement wallet:

· View on Solscan

Each transaction carries a memo in one of the following formats. Fields are separated by | in payments and by : in settlement transactions.

To verify a cover, open the settlement wallet on a block explorer and find the payment by its signature. The receipt, payout or refund for that payment references the same signature in its memo.

9. Risks

• Volatility. Memecoins and newly launched tokens are extremely volatile. Most cover expires without a payout; the premium is priced accordingly.
• Price data. Settlement relies on DexScreener and Jupiter. Brief price spikes that neither source reports do not count, and the higher of the two prices is always used.
• Operational dependency. Protec does not use a custom on-chain program. Settlement is performed by an off-chain service that reads public Solana RPC nodes and signs transactions from the settlement wallet. An outage can delay receipts and payouts; the data-outage rule in section 5 applies.
• Capacity. Payouts can only be made from the settlement wallet's balance. The capacity rules in section 6 ensure that every cover sold is backed when it is sold.
• Legal. Nothing on this site is financial advice. The service is not offered where it is prohibited, and you are responsible for complying with the rules that apply to you.

10. FAQ

Can I cancel cover?

No. Once cover has started, the premium is retained whether or not the cover pays out.

What happens if I sell my tokens during the window?

The payout is based on your balance at the moment cover triggers. If you hold fewer of the covered tokens at that point, the payout is reduced in proportion.

What if the token graduates from the bonding curve during my cover?

Cover continues. The policy price follows the token's deepest pool, so the price moves from the curve to the new pool without interruption.

Why was my payment refunded?

The refund transaction's memo contains a reason code. Section 7 lists every code and its condition.

Which wallets are supported?

Any Solana wallet that implements the Wallet Standard and can sign transactions, including Phantom, Solflare and Backpack. On mobile, open the site in your wallet's built-in browser.