Is my principal protected if I hold Income?

No. Income keeps the asset — it bears the full downside of the stock token. Your only cushion is the premium collected at auction. The protocol has no insurance fund for price declines.

Can I lose more than my premium on Upside?

No. The clearing price is your entire cost, paid once. There are no funding rates, no liquidations and no margin. If S ≤ K at settlement the position expires worthless — that is the worst case.

Why do the prices say "Indicative (model)"?

Between auctions there is no protocol-internal price for the legs. The app shows a Black-Scholes estimate (σ = 25%, r = 0) for orientation only. The real, binding price for Upside is whatever the descending-clock auction clears at.

When can I get my stock tokens back?

Any time. Merge one Income + one Upside into one stock token on the Recompose page — before open, during trading, after settlement (at the settled rate), even while other actions are paused.

What happens if the auction fails?

If nobody bids or no lot sells, the round finalizes at zero volume. Consigned Upside becomes claimable by its owners, and — if calendar slots remain — anyone can reschedule a new round with lots and reserves intact.

What if the oracle dies?

Settlement slips day by day while the oracle is down. After 30 days the series enters the termination queue, and five days later anyone can trigger terminate, snapshotting at the anchored window price or falling back to S = P0. Claims then follow the normal settled rules.

What if the token issuer burns the vault?

Entitlements scale by the collateral ratio p = vault / issued — everyone shares the loss proportionally, and merge pays p per pair. Nobody can front-run the loss onto others; the shortfall ledger keeps the accounting public.

Who can move the protocol forward?

Anyone. open, settle, finalize, reschedule and terminate are unpermissioned by design — keepers are just convenient robots, and the app exposes the same buttons.

Is there a token?

A $KAPS token is planned for Phase 2 — fixed one-billion supply, revenue routing (55/20/15/10) and lock-weighted staking. Nothing of it exists on testnet today; the Rewards page is a preview of the design.

Is this financial advice?

No. This is testnet software for a mechanism sandbox. Anything you read here — including the worked examples — is illustration, not investment guidance.