Market Opportunity Mechanism SAFTs Protocol Open App
On-chain · Bilateral · Institutional

Institutional
Hedging
for Token
Markets.

Fully on-chain bilateral hedging for OTC vested token markets. No exchanges. No custodians. No unsecured settlement exposure.

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Serviceable Market
$40B+
Outstanding vested positions without hedging infrastructure
Downside Coverage
100%
Negotiable threshold, isolated per interval
Settlement
On-chain.
Smart contract escrow, TWAP oracle, no legal overhead
$MirrorUSD Target APY
5–6%
Opt-in yield on locked collateral
Market Sizing

A multi-billion dollar
market with no infrastructure.

The vested token OTC market has operated without institutional-grade hedging since inception - systematically excluding most institutional capital from the asset class.

Annual Deal Flow · TAM
$15B
Estimated annual crypto private and OTC vested token deal flow
Crypto VC and private round investment averaged $18B/yr across 2022–2024, with structured OTC accounting for the majority of notional
Token sellers - foundations, VCs, and large holders - conducting secondary OTC sales represent an additional $3–5B in annual incremental flow
Mirror is positioned to process all of this flow with hedging infrastructure attached at origination
Outstanding Notional · SAM
$40B
Vested token positions currently outstanding across active vesting schedules
With typical 12–36 month vesting, live inventory at any point is 2–3× annual deal flow - approximately $30–50B in actively vesting positions
The vast majority carry no hedge. Price risk is borne entirely by the buyer from inception through each unlock event
Mirror can be retrofitted to existing positions via secondary market participation through the platform’s bid board
Unlockable Capital · Upside
$300B
Conservative estimate of institutional capital on the sideline due to absent hedging infrastructure
Global hedge fund and family office AUM exceeds $10T. An incremental 1.5% reallocation enabled by hedging represents $150B in new capital
Sovereign wealth and pension allocators managing $20T+ are effectively excluded today. Even 0.5% allocation flows equal $100B
The constraint is not appetite - it is the absence of a product that fits existing risk mandates. Mirror is that product
Deal flow estimates derived from PitchBook, Galaxy Digital, and CoinGecko Research annual crypto investment reports (2022–2024). Outstanding notional modelled as 2.5× annualised deal flow with a 24-month average vest. Institutional sideline capital derived from Preqin global AUM data applying a conservative 1–2% incremental allocation assumption for managers currently at or near zero crypto exposure. All figures are order-of-magnitude estimates and should not be treated as audited projections.
The Opportunity

A structural gap
in institutional access.

For years, institutions have sat on the sideline of the vested token market. The risk profile was unhedgeable, the infrastructure was absent, and the counterparty exposure was unacceptable. Mirror closes that gap entirely.

Buyer Benefits
01
Downside protection to any negotiated threshold. Buyers receive compensation up to δ% of entry value in the event of adverse price movement - structured per interval, not path-dependent. Bids require a 2.5% deposit, demonstrating committed intent and giving sellers confidence in the buyer before pushing a position live.
02
Interval-isolated exposure. Each settlement window is independently collateralised - a loss in one interval cannot affect the others. Maximum downside per window is known at origination.
03
No margin calls, no exchange dependency. Collateral is locked at origination and held in escrow for the full duration - no ongoing margin requirements, no funding rate drag, no forced liquidation. Settlement is entirely on-chain; no centralised exchange exposure.
04
Higher deal velocity. With downside covered at the position level, funds can deploy into more opportunities without exceeding risk mandates. Protection per deal compounds into meaningfully higher deal flow - positions that previously required a pass become executable.
Seller Benefits
05
Superior deal terms. When buyers feel structurally protected, sellers - whether foundations, VCs, or large holders - can command smaller discounts, negotiate longer vesting periods, and transact with counterparties who are genuinely committed to the position. Better proceeds and stronger treasury outcomes follow directly.
06
No market impact. All hedging is resolved privately between buyer and seller. There is no short pressure on public markets; token price action is entirely unaffected.
07
Deeper institutional reach. Mirror enables token sellers to transact with institutional counterparties who were previously excluded by risk mandate constraints. Covered buyers can commit to larger positions and longer durations, improving both deal size and cap table quality.
08
Price discovery through committed bidding. Mirror’s bid board enables genuine price discovery across all seller types. Bids require a 2.5% deposit - if the buyer fails to complete after the seller goes live, the deposit transfers to the seller, who moves to the next bid.
The Mechanism

Bilateral. Self-collateralised.
Interval-isolated.

Mirror is a two-parameter bilateral hedging system. Downside protection (δ) and upside participation (γ) are independently negotiated and priced, with each settlement interval isolated in its own pool - eliminating path-dependency and exotic payoff structures.

At each settlement window, a TWAP oracle determines the reference price. If price has fallen below reference, protection is drawn from the buyer’s interval pool - capped at δ%. If above, γ% of profit is returned to the seller. Neither party can exit early; escrow enforces completion.

δ - Downside
Illustrative
50%
Max protection as % of interval investment. Negotiated per deal. Fully self-funded from buyer pool.
γ - Upside
Illustrative
28%
Seller’s share of net interval profit above reference. Bilateral skin-in-the-game.
Settlement Flow
B
Institutional Buyer
Commits USDC · Receives vested tokens · Protected to δ%
↕ bilateral escrow
◈
Mirror Smart Contract
Interval-isolated pools · TWAP oracle · Non-custodial escrow
↕ bilateral escrow
F
Token Seller
Foundation, VC, or asset holder · Provides tokens · Participates in γ% upside
Escrow Guarantee
Neither buyer nor seller can withdraw before settlement. No third-party custodian. Where collateral and token delivery are fully enforceable on-chain, no separate legal agreement is required. The contract is the counterparty.
Tokenised SAFTs

Mirror's superpower:
SAFT agreements
on-chain.

Mirror is building a legal wrapper that allows token holders to tokenise their SAFT agreements directly on the platform - transforming illiquid private allocations into transferable, on-chain instruments with downside protection built in from day one.

01 - Origination
Tokenise your SAFT
Token holders upload their SAFT agreement through Mirror's legal wrapper. The agreement is verified, structured, and minted as an on-chain instrument - fully representing the underlying allocation, vesting schedule, and terms. No lawyers, no manual transfer agreements, no operational overhead.
02 - Protection
Hedge it through Mirror
Once tokenised, the SAFT can be immediately paired with Mirror's bilateral hedging mechanism. Downside protection (δ) and upside participation (γ) are negotiated and priced at origination - the first time institutional-grade risk management has been available at the point of SAFT execution.
03 - Secondary Market
Sell, transfer, repeat
Tokenised SAFTs are freely tradeable on Mirror's secondary market. If a buyer wants to exit before vesting completes, they simply relist the tokenised SAFT - passing the position, the hedge, and the remaining vesting schedule to the next buyer. Liquidity that has never existed in this market before.
04 - Privacy
Anonymous by design
Every transaction - origination, hedging, and secondary transfer - is settled privately on-chain. Counterparty identities are never exposed to the market. There is no public order book, no information leakage, and no visible position movement. The anonymity institutions require, enforced at the protocol level.
Legal Wrapper
Mirror's legal wrapper is currently in development. The structure is designed to ensure tokenised SAFTs are enforceable instruments under applicable law, with compliant transfer mechanics and KYC-gated access for all counterparties. Details available to qualified institutional participants upon request.
Why Mirror

Built for institutions
that move carefully.

01 / Liquidity
Billions in Unlocked Capital
The institutional capital sitting on the sideline of token markets is not absent by choice - it has been structurally excluded by the absence of appropriate hedging infrastructure. Mirror is the key that opens that allocation.
02 / Privacy
Private by Default
All transactions are conducted privately between buyer and seller, settled on-chain via smart contract. No public order books. No visible short pressure. No information leakage to the market. The opacity that institutions require.
03 / Infrastructure
Zero Exchange Dependency
Mirror removes the structural dependency on centralised exchanges, volatile funding rates, and fragile liquidity profiles that have made token hedging impractical for institutional mandates. Settlement is sovereign and on-chain.
04 / Risk
No Counterparty Default
The escrow contract enforces completion. Once committed, neither party can withdraw. There is no reliance on trust, relationship, or legal jurisdiction - the protocol guarantees execution for both sides simultaneously.
05 / Discovery
Genuine Price Discovery
Mirror’s integrated bid board introduces competitive price discovery to vested OTC transactions for the first time. Sellers receive real market signals. Buyers compete on terms. Both parties access fair pricing with full process transparency.
06 / Alignment
Bilateral Incentive Structure
Mirror’s γ parameter creates genuine alignment between foundation and buyer. Token sellers participate in buyer upside, giving them skin-in-the-game beyond the initial transaction. A structure no traditional OTC desk can replicate.
$MirrorUSD - Optional

Capital locked in escrow
doesn't have to sit idle.

When a Mirror position is live, the buyer's stablecoin collateral is locked inside the protocol for the duration of the vesting schedule. $MirrorUSD is Mirror's optional yield-bearing settlement asset - allowing the token seller to earn 5–6% APY on that locked capital while it waits. Buyers can also hold their stablecoin treasury in $MirrorUSD between trades, earning yield while they wait for the next opportunity. Entirely opt-in.

01
The token seller earns while collateral is locked. Under a standard Mirror hedge, the buyer's stablecoin collateral is held in escrow throughout the vesting period. $MirrorUSD ensures that capital generates 5–6% APY for the token seller continuously, rather than sitting dormant inside the protocol.
02
General treasury yield between trades. Both buyers and token sellers can hold their broader stablecoin treasury in $MirrorUSD, earning yield on idle capital while waiting for the next opportunity - no lock-up, no manual deployment, fully liquid at all times.
03
No change to settlement mechanics. $MirrorUSD settles directly - no unwrapping, no conversion delay, no friction. When a position closes, proceeds are immediately available. Bridge-agnostic across chains.
04
Entirely opt-in. Mirror works exactly the same whether you use $MirrorUSD or not. Clients can switch in or out at any time - capital is fully liquid with no lock-up beyond the position itself.
Target APY
5–6%
Yield earned by the token seller on locked collateral. Capital that would otherwise sit dormant in escrow earns continuously throughout the position lifecycle.
Illustrative seller earnings on locked collateral
$10M in active positions ~$315K / yr
$50M in active positions ~$2.06M / yr
Protocol Architecture

Engineered for
institutional standards.

Smart Contract Escrow
Funds held in non-custodial escrow from inception through final settlement. No third-party custody. Where collateral and token delivery are fully enforceable on-chain, no separate legal agreement is required - the protocol enforces completion for both parties with mathematical certainty.
Multi-Source TWAP Oracle
Settlement prices derived from volume-weighted time-averaged prices across multiple sources. Multi-source aggregation ensures integrity at each interval boundary.
Interval-Isolated Settlement Pools
Each settlement interval operates an independent capital pool. Path-dependency is eliminated entirely - earlier intervals cannot drain protection from later ones. The payoff profile is linear and predictable.
Fair-Value Pricing Constraints
δ and γ are independently priced against options-theoretic fair-value constraints at deal creation. The protocol enforces pricing discipline - neither party can enter a structurally mispriced position.
Vertically Integrated Deal Flow
Mirror is built directly into the origination infrastructure. No dependency on external sourcing, third-party matching, or off-chain relationship infrastructure. Deal flow and hedging are vertically integrated from day one.
mirror_position.json
{
  "protocol":   "Mirror",
  "deal":        "PEAQ Strategic Round",

  // Capital structure
  "investment":  50000,
  "entry_price": 0.0290,
  "tokens":      1724138,

  // Hedge parameters
  "downside":    0.50,
  "upside":      0.28,
  "intervals":   4,

  // Settlement
  "oracle":       "TWAP",
  "escrow":      "non-custodial",
  "irrevocable": true,

  // Vesting
  "vest_type":   "cliff_linear",
  "cliff_days":  30,
  "vest_days":   180
}

The infrastructure
your mandate
has been waiting for.

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Qualified institutional counterparties only · Private by default · On-chain settlement