A stock is a bundle. Tranch prices the pieces.
Buying a share buys every economic driver of a company at once: revenue growth, margin structure, each business segment, management's guidance, all blended into one price. If you have a view on one of those drivers specifically, the stock is a blunt instrument. Tranch turns individual reported fundamentals into their own instruments.
From a view to a settled payout
- 1
Choose a company metric
Pick a single reported figure from a single earnings event, for example NVDA Q3 FY2027 revenue. Each market names the exact line item it settles against and the reference value it prices surprises relative to.
- 2
Choose your exposure
Go LONG if you think the company will report above the reference value, SHORT if you think it will come in below. Both sides are ordinary ERC-20 claims you can hold, transfer or sell at any time before settlement.
- 3
Trade the tranche
Prices move as the market reprices its expectation for that specific figure. Because a LONG and a SHORT price always sum to $1.00, any price can be read back as an implied metric value, which is how the interface shows you what the market actually expects.
- 4
Earnings are reported
After trading closes, the oracle records the official figure from the company's own disclosure. There is a short correction window for reporter error, after which the result is final and immutable.
- 5
Settlement
Your payout depends on how far above or below the reference value the metric actually landed. The further the surprise runs in your direction, the more each claim is worth, up to a configured cap.
Magnitude matters, not just direction.
Tranch is not a yes/no market on whether a threshold gets crossed. Settlement scales continuously with the size of the surprise, so a 1% beat and a 10% beat are priced and paid very differently.
Hypothetical revenue market · reference $65B
Adjust the parameters and the settlement outcome below
Higher sensitivity means smaller surprises move settlement further.
The floor mirrors the cap, so the two sides always sum to exactly $1.00.
Where exposure comes from
Claims are not issued by an operator or sold from an inventory. They are minted by depositing collateral, and destroyed by returning a matched pair.
A complete set is worth exactly one unit of collateral under every possible outcome, so it can always be merged back before settlement. After settlement the two claims divide that unit according to the reported figure. One side gains exactly what the other gives up, which is why total claims can never exceed deposited collateral.
A complete set is always worth par
One LONG plus one SHORT equals exactly one unit of collateral under every possible reported figure. That is why a matched pair can always be merged back before settlement, at any time, regardless of what the market price has done.
Merging never depends on liquidity
Merging is a protocol action, not a trade. It touches no pool, pays no price impact and cannot fail for want of a counterparty. It stays available even after trading closes, while the market waits on the oracle.
After settlement, the pair divides the unit
Instead of merging, each side redeems its own resolved share. One side's gain is exactly the other's loss, so the two payouts still sum to the collateral that backed them.
Why no earnings result can break the system
Claims require collateral
Claim tokens can only be minted by the market that holds the collateral backing them. There is no path by which a claim exists without a deposit behind it, so the outstanding supply of each side is always exactly the number of collateralised sets.
Payouts are clamped
Each market configures a hard floor and cap on what a claim can settle at. However extreme the reported figure, whether a catastrophic miss or a blowout beat, the two shares still sum to one unit, so total claims can never exceed total collateral.
Rounding favours the protocol
Every payout calculation rounds down, and fee calculations round in the user's favour. Accounting slack can only ever grow, never turn into a shortfall.
One trusted component, clearly labelled.
Everything about Tranch is trustless except the number that comes in from the outside world. Rather than obscure that, the protocol isolates it behind a single interface and says plainly what the trust assumption is.
Why quantitative earnings metrics first
Every live market settles against a figure the company states explicitly in its own quarterly disclosure. Two readers of the same press release will always agree on it. That is a deliberate constraint: subjective decomposition, meaning what a self-driving programme or a robotics division is 'worth', is not objectively settleable and is therefore not supported.
Resolution is permissioned today
Results come from addresses holding a reporter role. That is appropriate for a supervised launch and it is the single trusted component in the system. The oracle sits behind an interface so it can be replaced with a Chainlink feed, an optimistic oracle with a dispute game, or a multi-reporter committee without changing market logic.
Failure has a defined outcome
If no result ever arrives, anyone can cancel the market after the settlement deadline and both sides redeem at exactly $0.50, which is what a complete set was always worth. Collateral cannot be stranded by a silent reporter, and a late but genuine result always takes precedence over cancellation.
What Tranch is not
Not tokenised equity
A Tranch claim is not a share and does not represent fractional ownership of the referenced company. It is a collateralised contract settling against a defined reference value, with no dividend, voting or shareholder rights of any kind.
Not a prediction market
Prediction markets resolve a proposition to true or false. Tranch markets have a continuous payoff surface over the reported value, per-metric sensitivity, and claims that recombine into collateral. They behave like derivatives on a fundamental, not like bets on an event.
Not a perpetual futures engine
There is no leverage against unposted margin, no funding rate and no liquidation engine. Every position is fully collateralised at mint and losses are bounded by what was paid.
Tranch claims are collateralised financial contracts that settle against a defined reference value. They are not shares, they convey no ownership of the referenced company, and they carry no dividend, voting or shareholder rights.