Pricing guidance

Building a lending market, vault or pool with ST0x tokens? You need a price for them. This page takes you from the underlying share price to a token price you can rely on, in four steps. It describes mechanics, not what any token is worth: holding a token is not the same as holding the share.

1. Start from the share price

Each tStock carries a right to one underlying share, so a tStock price starts from that share’s price. Choosing the source and any risk adjustment is your decision. Check what a feed reports before you use it: some feeds for tokenised stocks report a total-return value (the share price scaled by a dividend multiplier) rather than the share price.

Market hours. Shares trade in exchange sessions, closed at night, at weekends and on exchange holidays, and trading in a stock can be halted. ST0x tokens move around the clock. So most of the time a share price is a last close, not a live price. Decide whether you use regular-session prices only or extended sessions, set a maximum age for every read, and never liquidate or settle against a stale, frozen, zero or missing price. Expect bigger moves when markets reopen.

2. Scale it for wtStock

wtStock holds tStock, and the tStock behind each wtStock rises when dividends are delivered to the wrapper. So a wtStock price drifts above the share price over time, and that’s expected. Multiply the tStock price by the ratio:

// tStock per wtStock, on this chain
ratio = wtStock.convertToAssets(1e18) / 1e18

Read the ratio on the chain of the token you are pricing, at the time you read the share price. Ratios differ between chains, so never reuse one chain’s ratio on another, and don’t cache it across corporate actions.

For example, with a share price of $200 and a ratio of 1.004, one wtStock is worth $200.80. Apply the ratio once: if your source already scales its price for dividends, as some token-specific feeds do, don’t multiply again.

3. Handle corporate actions

Splits. tStock balances change at the split’s effective time, and your price must switch to the post-split basis at the same moment. A price that switches early or late is off by the split ratio, so pause reads across the effective time or use a source that applies the split at the same timestamp. How splits work onchain.

Dividends. On the ex-date the share price typically drops by about the dividend. For wtStock, the ratio only rises when the dividend reaches the wrapper, which can be days later, so a wtStock price scaled by the ratio leaves out the pending dividend in between. That errs on the low side, which is conservative for collateral; expect the price to step up when the dividend lands.

4. Set collateral parameters

• Issuer credit. Tokens are unsecured claims on S01 Issuer GmbH. What you hold.
• Redemption. Exchanging tokens for shares needs an Eligible Broker account and onboarding, has a US$10 minimum, can take hours to weeks, and can be suspended.
• Transfers can stop. If a token’s issuer certification lapses or the issuer freezes it, transfers revert, and a confiscation can move tStock from a holder. Check isCertificationExpired() and ownerFrozenUntil(). Issuer controls.
• Liquidity. Check each token’s venues and pool depth on its token page before setting liquidation thresholds.
• Currency. Shares are priced in their listing currency, so convert where needed (LVMH, ticker MC, is listed in EUR). ADRs such as TSM track a foreign share: price them from the ADR’s own listing.