Question 1

Why can the rate be 0%? What's the catch?

Accepted Answer

The short call sold on your collateral funds the loan. The catch is stated at quote time: your upside is capped at the call strike until settlement. You pay with potential gains above the cap, not with interest.

Question 2

Can I be liquidated?

Accepted Answer

No. Once funded, positions cannot be force-closed. The floor under your loan is a put option bought at origination, if the price falls, the put pays the difference. There is no margin monitoring, no bot, no price-wick closures.

Question 3

What collateral can I use?

Accepted Answer

WBTC and WETH, over-collateralized. Settlement dates follow listed option expiries, from days to months out, so you choose exactly when your loan settles.

Question 4

What happens if I don't repay?

Accepted Answer

You can simply walk away. The put settles to protect the lender to the floor, and your collateral is sold via Dutch auction. No debt follows you beyond the collateral you posted.

Question 5

Where does the yield actually come from?

Accepted Answer

The call premium written on every funded loan. It is priced when the collar is executed, not projected, not emitted. When volatility is rich, premiums are richer.

Question 6

Is the 10–16% APY guaranteed?

Accepted Answer

No. Targets are 10–16% APY depending on tenor, with a floor mechanism that softens compression, but actual returns vary with volatility and pool utilization.

Question 7

What is soUSD?

Accepted Answer

Your share of the lending pool. It accrues option premiums as loans settle and is redeemable for USDC after your tenor unlocks. Idle capital auto-deploys to Aave for base yield.

Question 8

When can I withdraw?

Accepted Answer

After your chosen tenor expires (7, 30 or 90 days) or its loans mature. There are no deposit or withdrawal fees.

Question 9

How does the Dutch auction work?

Accepted Answer

The price starts above market and decreases automatically over time. The first buyer to accept wins instantly, there is no bidding, no order book, no negotiation.

Question 10

Why are there so few deals?

Accepted Answer

Auctions only exist when a borrower defaults at expiry. Since loans never liquidate mid-term, defaults are the only path for collateral to reach auction, scarcity is by design.

Question 11

Has the protocol been audited?

Accepted Answer

Audit reports will be published on this page when they're complete. Until then, upgrades require a 3-of-5 multi-sig and a timelock, with an emergency pause.

Question 12

What oracles does Stormbit use?

Accepted Answer

Multiple sources, Chainlink and Pyth, with staleness checks. Originations pause automatically in extreme volatility regimes.

Question 13

Who can use Stormbit?

Accepted Answer

Users from the United States and sanctioned jurisdictions cannot access the protocol, and VPN circumvention is prohibited and enforced. All yields are variable; only deposit what you can afford to lose.