Reserves & fees

The 3% market hook

The canonical V1 market applies a 3% hook charge on the underlying-asset side. Settled hook proceeds are split 70% to the family’s reserve and 30% to treasury. This is the Catch hook charge, not a promise of an all-in trading cost; use the actual quote for total charges, price impact and gas.

Primary purchase proceeds are also accounted separately, with 70% directed to reserve and 30% to treasury. Secondary swaps never count as primary purchases.

Settlement is permissionless

Accrued hook claims and collectable fees are not liquid reserve backing until delivered. Anyone can call the relevant settlement function, paying network gas; the contract enforces the recipients and split. Calling it does not redirect those funds to the caller.

The permanent position’s collected underlying fees follow the reserve/treasury split. Of its collected cAsset fees, 70% is burned and 30% goes to treasury. Collecting fees does not unlock or withdraw the permanent liquidity principal. Fees earned by other liquidity providers are not Catch revenue.

Reading protocol reporting

Current reserves show underlying assets still held by reserve vaults, converted at the reporting reference. Total added to reserves measures indexed inflows; it is not current NAV and is not a claim on future revenue. Redeemed by holders measures payouts. Treasury received is separate from holder backing.

Current USD NAV can rise or fall with the underlying reference even without a reserve transfer. Historical flows use their indexed valuation where available; missing data is not fabricated. A cumulative flow total and a current marked-to-market reserve need not match.

Direct contributions

A transfer of the correct underlying token to the verified reserve vault increases its liquid backing. It does not issue cAssets, establish a separate depositor claim or entitle the sender to withdraw the contribution. Sending a cAsset or an unrelated token to a contract is not the same thing and can lose access to those tokens.