> For the complete documentation index, see [llms.txt](https://docs.kyte.sh/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.kyte.sh/getting-started/overview.md).

# What is Kyte

A peer-to-peer market for fully collateralised options on Robinhood Chain.

## What Kyte is

Kyte is a peer-to-peer market for **covered options** on Robinhood Chain, an Ethereum L2.

* A **call seller** locks ERC-20 tokens and lists a call: a strike in ETH, an expiry, and a premium.
* A **put seller** locks ETH (held as WETH) and lists a put on a token.
* A **buyer** pays the premium and receives an **Option NFT**. Until expiry, whoever holds that NFT can exercise.
* After expiry, anyone can **expire** the option and the collateral goes back to the seller.

Settlement is **physical**: on exercise, tokens and ETH actually change hands. There is **no price oracle** in the option logic. The holder decides whether exercising is worth it.

## Why it is built this way

| Property                    | What it means for you                                                                                                                  |
| --------------------------- | -------------------------------------------------------------------------------------------------------------------------------------- |
| **Fully collateralised**    | Every option is backed 100% by locked collateral. There is no leverage, no margin and no liquidation.                                  |
| **Non-custodial**           | Collateral can only go to its seller or to the option holder, less the fixed exercise fee. No admin, guardian or multisig can move it. |
| **Fees fixed per position** | The fee rates are recorded on each position when it is created. A later fee change never affects it.                                   |
| **Exits are never paused**  | A pause stops only new offers, fills, new stake and buybacks. Cancel, exercise, expire, unstake and claim keep working.                |
| **On-chain revenue split**  | Fees are split by the contracts: 30% to stakers, 20% to buy and burn `$KYTE`, 50% to operations.                                       |
| **Verifiable burns**        | The buyback swaps on Uniswap v4 and burns in the same transaction. The Proof page is built only from on-chain events.                  |

## Who does what

| Role                | Action                                                   | Gets                                                                           |
| ------------------- | -------------------------------------------------------- | ------------------------------------------------------------------------------ |
| **Call seller**     | Locks tokens, sets strike, expiry and premium            | The premium. If exercised, the strike as well. Otherwise the tokens come back. |
| **Put seller**      | Locks the total strike in ETH (as WETH)                  | The premium. If exercised, the tokens. Otherwise the WETH comes back.          |
| **Buyer / holder**  | Pays the premium, receives an Option NFT                 | The right to exercise until expiry. The NFT is transferable.                   |
| **Staker**          | Stakes `$KYTE`                                           | 30% of protocol fees, paid in WETH every epoch.                                |
| **Keeper (anyone)** | Expires options, triggers the daily split, runs buybacks | Keeps the system moving.                                                       |

## What you can trade

Kyte lists tokens through an on-chain **AssetRegistry**. Markets v2 has room for 300 assets, including **Robinhood Stock Tokens** (tokenized equities such as AAPL, NVDA, TSLA and SPY), Ondo tokenized stocks, and a curated set of crypto tokens on Robinhood Chain. Each token has its own exposure cap and minimum strike. The **Market** page shows only tokens that are currently enabled.

As of 5 November 2026, **228 tokens** are listed in markets v2 (203 Robinhood Stock Tokens and ETFs, 11 Ondo tokenized stocks, and 14 crypto tokens), all with puts enabled. The full list with addresses and limits is in [Listed tokens](/reference/listed-tokens.md).


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