The final settlement ratio
The whole vault settles together. Every receipt receives the same proportional entitlement to the tokens actually delivered.
One global adjustment
Deposits hold USDG, not a hedged position in the underlying stock. A higher market price does not increase the vault's USDG balance. The receipt purchase price is therefore not a guaranteed future stock conversion rate.
At settlement, the contract freezes total receipt supply and the complete balance of the selected payout token. These totals determine all claims. The settlement ratio does not use a separate price for each buyer.
holder payout ≈ holder receipts ÷ frozen supply × frozen payout pool
The $100 to $120 example
Suppose 100 USDG bought one receipt at a $100 oracle price. The vault still holds 100 USDG when the stock token becomes available at $120. Ignoring acquisition costs and token-unit differences, that amount can acquire about 0.833333 stock tokens.
If that is the amount delivered, the one-receipt holder claims about 0.833333 tokens. The contract cannot create the missing $20. A lower acquisition price could instead produce a larger token pool.
Different entry prices
In this separate example, the first buyer deposits 100 USDG at $100 and receives one receipt. A second buyer deposits 240 USDG at $120 and receives two. The vault contains 340 USDG and three receipts are outstanding.
Assume the operator delivers 2.5 payout tokens in exchange for the vault's full USDG balance. The first holder receives one third of that pool and the second receives two thirds, regardless of their individual purchase prices.
| Holder | USDG deposited | Receipts | Share of 2.5 tokens |
|---|---|---|---|
| First buyer | 100 | 1 | About 0.833333 |
| Second buyer | 240 | 2 | About 1.666667 |
| Total | 340 | 3 | 2.5 |
What the settlement transaction enforces
Only the designated settlement operator can settle during Funding. The operator approves the payout token to the vault, then submits its token address, amount and USDG recipient.
In the settlement transaction, the vault receives tokens from the operator, freezes its full payout-token balance and receipt supply, and transfers all its USDG to the chosen recipient. If the transaction reverts, its changes roll back together. An earlier approval remains a separate transaction.
The contract does not buy shares through a broker, whitelist a canonical stock token, verify a token's backing, or enforce a fair acquisition price or minimum economic value. The operator is responsible for the correct token and terms. Listing alone does not trigger settlement.