Understanding Lots
A Lot is a fixed recipe of unique eligible component tokens. Compose 2–5 components, the range LotFlow supports; see composition and routing limits. Its Lot token represents specified quantities of every component. Those quantities are set when the Lot is composed and do not rebalance as prices move.
This page covers current fixed Lots. Upcoming Dynamic Lots use shares of managed holdings and leave existing recipes unchanged.
From percentages to quantities
The standard composition flow asks for percentage weights and targets an initial reference value of $1 per whole Lot token. Approved token-denominated prices convert those percentages into fixed quantities once.
This fictional example uses stock tokens X, Y and Z. Prices are made up for arithmetic, not current quotes or an approved asset list.
| Component | Target weight | Reference price per stock token | Fixed quantity per Lot token | Initial value |
|---|---|---|---|---|
| X | 50% | $100 | 0.005 X | $0.50 |
| Y | 30% | $50 | 0.006 Y | $0.30 |
| Z | 20% | $20 | 0.010 Z | $0.20 |
| Total | 100% | — | Complete recipe | $1.00 |
The relation is quantity = target weight × initial basket value / component price. Token precision introduces rounding. Before signing, review the exact quantities, resulting weights and value, and the reference time.
The contracts also accept exact-quantity recipes, preserving the supplied quantities even when their initial value differs from $1. The composition wizard uses percentage weights.
Fixed quantities mean drifting weights
Suppose X later rises to $200, while Y and Z stay at the example prices. One Lot token still represents 0.005 X, 0.006 Y and 0.010 Z. It is now worth an indicative $1.50, with weights of about 66.67%, 20% and 13.33%.
The vault keeps the same token quantities. Restoring the original percentage weights would require trades; a fixed Lot performs no such rebalancing.
The $1 value is therefore a starting reference for a new standard recipe, not a peg, guaranteed redemption price or reset rule. Reusing this basket at the later prices does not turn it back into a $1 basket.
One receipt, proportional component exposure
Ignoring atomic-unit rounding in this whole-token example:
| Lot tokens held | X redeemable | Y redeemable | Z redeemable |
|---|---|---|---|
| 100 | 0.5 | 0.6 | 1.0 |
| 120 | 0.6 | 0.72 | 1.2 |
| 80 | 0.4 | 0.48 | 0.8 |
When every component transfers successfully, more Lot tokens redeem for proportionally more of each component, subject to rounding. Their dollar value depends on component prices.
What makes a Lot the same Lot?
Recipe identity includes the chain, sorted component addresses, quantities and vault semantics/version. Identical eligible recipes reuse an existing Lot; names, tickers and historical percentages do not establish identity.
Rotation additionally requires the exact same registered quote address and launch factory. Separate vaults with matching recipes are insufficient.
Costs and limitations
Lots charges no mint or redemption protocol fee. Gas, approvals, component-market fees and impact remain separate. In-kind minting requires every component; redemption requires successful transfers. ETH routes additionally need executable component markets. See minting, redemption and recovery.