Spot Equities

Felix spot equities are designed to deliver NYSE/NASDAQ execution 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?

Felix spot equities are accessed directly through Felix at trade.usefelix.xyz. Felix has partnered with Ondo to bring over 100 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 market product, where users can lend out their equities to earn yield (borrow demand comes from short sellers) and users can 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. All spot equity accounts are currently on Ethereum mainnet and are built with a custom link to 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. 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.

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.

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 NYSE market holidays

• While Ondo Global Markets is undergoing platform maintenance (view platform status here: 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.

How do dividends work?

Felix spot equities give token holders economic exposure to the underlying stock’s price action, corporate actions, and income distributions. A typical question about Felix spot equities is if traders will have exposure to dividends. In the initial implementation, instead of receiving dividends, shares per token will grow over time to account for dividend value. For example, over time, the price of a token for Pepsi Co (PEP) will deviate from the underlying share. When the tokens were initially launched, 1 PEP token = 1 PEP share. But as dividends were issued, 1 PEP token = 1.01 PEP shares. Based on user feedback, the dividends implementation can be adjusted.

How do I know my spot equities are protected?

Felix spot equities are fully backed by the underlying equity or ETF that they represent. These equities are tokenized versions of the underlying shares and do not represent legal equity in any company. Ondo 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 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.”