> ## Documentation Index
> Fetch the complete documentation index at: https://docs.drakewell.fi/llms.txt
> Use this file to discover all available pages before exploring further.

# SPYdw: a hedged SPY portfolio

> SPYdw is a hedged SPY portfolio in a single onchain token, live on Ethereum. See its key terms, from collateral and the hedge to epochs and early exits.

SPYdw is a hedged SPY portfolio, live on Ethereum. This page sets out its key terms, and [How it works](https://docs.drakewell.fi/spydw/how-it-works.md) follows a deposit through each step.

> **Yield pays for the hedge.** The underlying collateral of SPYdw generates yield. That yield buys the S\&P 500 options, and the collateral stays in place as the floor.

*Hedged, not guaranteed. Its value can fall, including below the amount deposited. The floor is the value of the collateral, not a guaranteed minimum. See [Risks](https://docs.drakewell.fi/spydw/risks.md).*

## Key terms

| Term | Definition |
| - | - |
| Collateral | The assets backing SPYdw, across its SPY exposure, its yield, and its hedge. |
| The hedge | The S\&P 500 call options SPYdw holds to manage its exposure to SPY. |
| The floor | The value of the collateral that stays in place while the options run. |
| Option ladder | Options bought on a regular schedule with staggered 12-month expiries. Cadence goes from quarterly to monthly. |
| Epoch | The window in which deposits and redemptions are processed. Up to 7 days. |
| Early-exit fee | A fee on redemptions made before the end of an epoch. |

| Item | Detail |
| - | - |
| Network | Ethereum |
| Deposit asset | USDC |
| SPYdw token | [`0x88e570F58881d8b200CA58B5a050fb5C9BAC8deb`](https://etherscan.io/address/0x88e570F58881d8b200CA58B5a050fb5C9BAC8deb) |
| Options held through | TradFi prime brokers |
| Proof of reserves | Published live by Drakewell `[TBC: URL]` |

## Learn more

> [card] [How it works](https://docs.drakewell.fi/spydw/how-it-works.md)
>
> The steps from deposit to redemption.

> [card] [Risks](https://docs.drakewell.fi/spydw/risks.md)
>
> How SPYdw can lose value.

> [card] [Proof of reserves](https://docs.drakewell.fi/trust/proof-of-reserves.md)
>
> Live reserve data published by Drakewell.


This documentation is built and hosted on [Mintlify](https://mintlify.com), a developer documentation platform.