Volatile profiles are the Risk Share-bearing side of the Statics Dollar. A volatile profile accepts a volatile collateral (the initial profile uses WETH) and mints equal nominal amounts of senior Dollar and series-scoped Risk Shares.

#Collateral and issuance

The initial volatile profile uses configured WETH and a Chainlink-compatible ETH/USD adapter with explicit staleness, range, and sequencer checks (see Oracle model). Depositing collateral mints:

Example
senior Dollar out == series Risk Shares out   (equal nominal)

The senior Dollar is fungible across the whole system. The Risk Shares are series-specific: they represent the residual risk of that series' collateral and are not interchangeable with any other series.

#Recombination

Recombining equal senior and junior claims returns proportional collateral when the health state permits. This is how a Risk Share holder exits a series without an external Dollar source — pair one senior Dollar with one Risk Share and burn both.

Example
recombine(1 USDstx + 1 RiskShare) -> proportional collateral

The typed gateway exposes recombineToWETH and recombineToETH. Volatile recombination additionally requires the caller's ERC-1155 Risk Share operator approval.

#Price bands, coverage, and ceilings

Each volatile profile is governed by:

  • a price band controlling transitions;
  • coverage and insurance parameters;
  • a per-profile debt ceiling; and
  • series lifecycle state.

Governance activates configured profiles, may move an active profile into reduce-only runoff, and may permanently retire it only from ReduceOnly. Volatile profiles additionally manage series states Active, RecoveryPending, Recoverable, Retired, and Closed.

#Reward and insurance routing

For an active volatile series in an eligible profile mode, the configured insurance portion routes to insurance and the complete remaining reward share enters the global Statics non-swap fee ledger. The current launcher initializes this active-series split to 70% global non-swap rewards and 30% insurance.

Note

Risk Share positions receive no mint-fee, ordinary-recombination-fee, donation, or passive allocation. When the series or profile mode is ineligible, the would-be global reward share routes to insurance instead.