# Spot Equities Felix spot equities are designed to deliver NYSE/Nasdaq execution and an abundance of tokenized stocks and ETFs to on-chain users. Bootstrapping liquidity on chain has been a challenge for spot equity providers, and we believe that giving users access to tradfi liquidity is the most effective way to proliferate the use of on chain equity markets while also providing sufficient optionality on assets. ## What are Felix spot equities? All spot equities and ETFs purchased on Felix are tokenized assets overcollateralized by real securities offchain. These tokenized assets only provide economic exposure to the underlying securities + dividends and do not function as real shares in publicly traded companies. Felix Spot Equities are accessed directly through Felix at trade.usefelix.xyz/equities. Felix has partnered with Ondo to bring over 260+ spot US equities to on-chain traders (with over 1,000+ in the coming months). The goal is to democratize exposure to US equity markets, reduce the friction caused by off ramping to traditional brokerage accounts, and provide minimal execution costs through pre-existing tradfi liquidity. Also, these equities will eventually be composable with Felix’s lending markets, where users can lend out their equities to earn yield or borrow stables against their spot equities. ## How do Felix spot equities work? In order to begin trading spot equities on Felix, users must open and fund their spot equity trading account. To do so, users must sign a one time transaction to open the account (see “How to set up your account” & “How to fund your spot equities account”). All spot equity accounts are currently on Ethereum mainnet and are built with a custom CCTP deposit withdrawal flow with their Hypercore portfolio. Future implementations will allow users to open their spot equity account on HyperEVM. \ Once funded, users are able to begin buying and selling spot equities. To purchase or sell an equity, users simply search their desired ticket, opt for a buy or sell, enter the desired size, and complete the transaction. All purchases and sales are done in terms of the underlying stock’s bid/ask midpoint from the NYSE or Nasdaq. In the background, buy (mint) and sell (redeem) transactions are routed through a Felix smart contract that interacts with Ondo’s mint/redeem endpoint. When a user submits an order and signs a gasless transaction, their order is processed for mints or redemptions via the aforementioned Felix smart contract, relaying the respective tokenized spot equity or USDC to the user. ## FAQ ### When is trading available? Spot equities are normally available to trade on Felix 24/5 or from 8:05:00pm ET (New York time) Sunday evening through 7:59:00pm ET Friday evening. The table below shows the hours of a typical trading sessions and the respective market pauses. | Session | Start Time | End Time | | ---------- | ---------- | ---------- | | Pause | 3:55 AM ET | 4:01 AM ET | | Premarket | 4:01 AM ET | 9:29 AM ET | | Pause | 9:29 AM ET | 9:31 AM ET | | Regular | 9:31 AM ET | 3:59 PM ET | | Pause | 3:59 PM ET | 4:01 PM ET | | Postmarket | 4:01 PM ET | 7:59 PM ET | | Pause | 7:59 PM ET | 8:05 PM ET | | Overnight | 8:05 PM ET | 3:55 AM ET | Users may not be able to trade spot equities on Felix during these specific times: * Short pauses in between sessions * Outside of 24/5 trading hours: 7:59:01pm ET (New York time) Friday evening to 8:04:59pm ET Sunday evening. * During [market holidays](https://www.nyse.com/markets/hours-calendars) * While Ondo Global Markets is undergoing platform maintenance (view platform status here: [status.ondo.finance](https://status.ondo.finance/)) * During dividends, trading may be halted from 7:50:00pm-8:10:00pm the day before the ex-dividend date. * Trading may be unavailable around certain earnings announcements depending on the announcement time. For example, during a pre-market announcement, trading could be paused from 5:00:00am-9:31:00am. Please keep in mind that when you are trading outside of regular market hours (9:31 AM ET - 3:59 PM ET) spreads will be wider on the NYSE and Nasdaq. Therefore, if you are looking for the tightest spreads, on average, they will be available during regular market hours. ### How are these spot equities priced? All spot equities purchased on Felix are backed with the underlying stock or ETF (see more information on backing under the FAQ “How do I know my spot equities are protected?”). Pricing on the Felix frontend is an estimate of the bid/ask midpoint of the underlying stock trading on the NYSE or Nasdaq. The price of each ERC-20 token that is inside of a users wallet is the function of this same bid/ask mid point plus any reinvested dividends. Any tokenized equities that have an underlying asset that received dividends and/or interest will result in a single token representing a larger amount of shares over time. This design allows tokenholders to benefit from asset dividends/interest. Using a simplified example - assume that PepsiCo, Inc (PEP) bid/ask midpoint is at $100 a share on the Nasdaq, and 1x PEP = 1x PEPon (Ondo’s tokenized PEP). Now say PepsiCo issues a $5 dividend to shareholders of PEP. This dividend will then be reinvested into PEP by Ondo and reflected in the price of PEPon (the token held by Felix users). So, if one token of PEPon was previously backed with 1x share of PEP at $100, PEPon is now backed with $105 of PEP making 1x PEPon = 1.05x PEP. When purchasing or selling PEP in this example, the last price a user sees on the Felix frontend for PEP will be in terms of the bid/ask midpoint on the underlying exchange, not PEPon. Therefore, a user will choose to buy 1 share of PEP, returning them \~.95 PEPon in their wallet (using the 1 PEP = 1.05 PEPon ratio above). This allows for both comprehensive pricing and exposure to dividends. ### Will there be limit orders or dollar cost average (DCA) in future iterations? Yes, the Felix team has built out limit order and DCA functionality, and they are currently undergoing a third party audit. Each will be implemented into the Felix frontend in an upcoming upgrade. ### Will spot equities be integrated with Felix lending markets? Yes, the Felix team has built out the lending infrastructure to enable borrow/lend composability. It will be implemented into the Felix frontend in an upcoming upgrade. ### How do I know my spot equities are protected? Felix spot equities are fully backed by the underlying equity or ETF that they represent. Ondo Global Markets is required to keep tokenholders' positions overcollateralized at all times. Felix spot equity tokenholders are also protected by an independent third party security agent, Ankura Trust Company, which holds a security interest in the safekeeping of this collateral. In the event that Ondo Global Markets defaults, Ankura Trust Company is empowered to take possession of the collateral, exchange it for cash, and distribute the proceeds to Felix spot equity tokenholders. Daily and monthly holdings reports for spot equities are available on the Felix trading terminal under each assets list of information. These sections are labeled “Daily Attestations” and “Monthly Attestations.” ### Have their been any audits for Felix spot equities? Yes, you can view our most recent security audit here: {% file src="" %}