Suggestions

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Hedging Concentrated Mike Exposure

Shareholders currently have 100% concentration risk in Mike with no way to hedge. Using the existing MIKE Economic Data indices (PPI, PHI, PWI, Social Capital Index, etc.), create peer-to-peer derivative contracts between shareholders.

Example: “If the Personal Wealth Index drops below 30 by Q2, Party A pays Party B 0.5 shares; if it rises above 50, Party B pays Party A 0.5 shares.” Risk-averse shareholders can reduce downside on specific metrics while risk-seeking shareholders gain leveraged exposure. Settlement is automatic based on published monthly index values.

Dev Requirements:

  • Contract builder UI: select index, threshold(s), stake (shares or cash), counterparty
  • Order book or matching system for finding counterparties (or allow direct peer negotiation)
  • Escrow system that locks shares/funds until settlement date
  • Auto-settlement triggered by monthly MIKE Economic Data updates
  • Contract history/portfolio view showing open positions and P&L
  • Consider standardized “series” (e.g., “PWI > 50 by Dec 2025”) for liquidity