Utility & Benefits

SMART Tokens and the Risk Marketplace combine to unlock a variety of use cases, catering to both risk-averse participants and risk-seeking traders. Here are a few examples of how TRP’s products can be used in practice and the associated benefits:

1. Hedge Volatility without Leaving Crypto

Perhaps the most immediate use case is for investors who believe in crypto’s long-term potential but can’t stomach the short-term volatility. Instead of selling their holdings for stablecoins, they can convert their assets into RiskOFF tokens. For example, an ETH holder worried about market turbulence could swap into RiskOFF ETH. If ETH’s price drops significantly, the RiskOFF token will drop much less, preserving capital. If ETH rises, RiskOFF ETH will also rise up to its cap—still capturing moderate upside. If users see sustained upside momentum, they can seamlessly swap into RiskON. This strategy provides a crypto-native form of downside protection. Unlike a stablecoin, the holder remains invested in ETH (and can benefit if ETH recovers), but with a cushion against extreme moves. This can be especially valuable for long-term holders during bear markets or for miners, stakers, and treasuries who accumulate crypto but want to reduce drawdown risk. DeFi treasuries and DAOs that currently park funds in stablecoins (exiting crypto exposure to preserve runway) could instead hold RiskOFF. This way, a project treasury could hedge the downside risk while still benefiting from some upside when the token performs well. Unlike stablecoins, which eliminate upside entirely, RiskOFF provides a middle ground: risk reduction without full exit and continuing to capture modest upside.

2. “Stabler” Collateral for DeFi

RiskOFF tokens could become a better form of collateral for lending protocols, DEXs, and stablecoin issuers, as they often struggle with the fact that crypto collateral is highly volatile, which can trigger liquidations or require significant over-collateralization. RiskOFF, being significantly less volatile than the likes of BTC and ETH, is inherently a superior collateral asset. For instance, RiskOFF BTC has historically shown long-term volatility equivalent to that of traditional equity markets. Logically, a lending protocol would allow higher LTV ratios on RiskOFF BTC compared to BTC. If DeFi money markets, DEXs, or stablecoin issuers integrate RiskOFF tokens as accepted collateral, users could get more against their holdings with less risk of liquidation. RiskOFF is not a stablecoin but definitely a "stabler" coin compared to the underlying asset.

3. Leverage without Margin Calls or Liquidation

On the flip side, traders who want to amplify their exposure can use RiskON tokens as a safer form of leverage. Buying a RiskON-BTC token, for instance, gives you levered exposure to Bitcoin’s moves—you gain extra on the upside in exchange for taking on extra risk on the downside. Crucially, this leverage comes without any risk of liquidation. In a traditional margin trade or using leveraged tokens, a sudden dip might liquidate your position. With RiskON, even if the market swings against you, the token simply loses value, but you are never forced out—you can hold it and possibly recover if the market rebounds. This makes RiskON tokens an attractive tool for expressing bullish views or short-term trades where the user is comfortable with high volatility but doesn’t want the administrative headache or tail risk of margin loans.

4. “Risk Mode Flippening”

TRP’s tokens enable a new kind of active alpha strategy: dynamically shifting between RiskON and RiskOFF, based on market conditions. In strong bull phases, you rotate into RiskON to concentrate upside; in stressed or sideways phases, you rotate into RiskOFF to cushion drawdowns and de-risk. Our historical backtests as of October 2025 illustrate the theoretical ceiling of this approach. For BTC, a dynamic SMART Token selection strategy of actively swapping between RiskON & RiskOFF tokens would have turned a simple ~69% gain for BTC over the last 1 year into ~213% (~3× BTC) gain for the dynamic strategy, ~480% over 3 years into ~5,100% (~11× BTC), and ~763% over 5 years into ~158,304% (~208× BTC). For ETH, the same exercise turns a ~76% gain for ETH over 1 year into ~614% for the dynamic strategy (~8× ETH), ~183% into ~4,839% over 3 years (~26× ETH), and ~1,069% into ~1,063,416% over 5 years (~995× ETH). Now, of course, one can time the market perfectly in reality, but these “best path” figures show how powerful risk mode switching between RiskON and RiskOFF can be, compared with passive buy-and-hold. For active traders, SMART Tokens effectively open up a new source of alpha, using fully collateralized instruments rather than leveraged perps or margin loans.

Dynamically Shifting Between RiskON BTC & RiskOFF BTC

Dynamically Shifting Between RiskOn ETH & RiskOFF ETH

In summary, picking the right token for the market environment will yield significant outperformance vs. just holding the underlying as illustrated in the analysis above. SMART Tokens provide DeFi a toolkit to trade risk at the native level, rather than resorting to off-chain derivatives or blunt instruments like selling to USD.

5. SIMPLICITY

No Greeks. No spreadsheets. SMART Tokens wrap complex risk exposures into a single, intuitive token so you can act on your market view without having to understand derivatives or the mechanics behind them. Focus on the outcome, and let the complexity run under the hood. Designed for both traders and non-traders, SMART Tokens don’t require a derivatives background. They behave like simple tokens you can hold in a wallet, LP into, use as collateral, or integrate into other DeFi protocols—without ever touching an options chain or perp exchange.

6. Unique Alpha

SMART Tokens unlock alpha streams unavailable in perps or spot.

Unlike perps: Perps give you linear leverage with funding-rate risk and liquidations. TRP’s SMART Tokens on the other hand provide non-linear exposure with the ability to “bend” the risk/return profile of the underlying. There are no liquidations, no funding-rate payments, and no margin management. You’re holding a fully collateralized payoff that automatically adjusts to market volatility. Instead of managing leverage, you select a risk flavor (RiskON or RiskOFF) and hold it like any other token.

Unlike options markets: Options are powerful but complex—implied vols, Greeks, expiries, strikes, premium decay etc. TRP abstracts away all of that. No constructing various option legs, no rolling positions. You simply choose the level of risk you want, and the protocol handles the mechanics behind the scenes.

TRP offers a new primitive, not another derivative instrument: With a derivative, you bet about an asset. With TRP, you hold a transformed version of the asset itself. A primitive behaves like a simple asset you own, not a contract you must maintain and monitor. It can be:

• Sent

• Traded

• Used as collateral

• Composed into other protocols

• LP’d or staked in DeFi

Most perp platforms (GMX, Hyperliquid, Kwenta, Synthetix Perps) on the other hand, expose positions that are:

• Account-based, not tokenized

• Dependent on margin and liquidation engines

• Dynamic due to funding payments

• Non-transferable

• Not ERC-20 assets

Because perp positions live inside the protocol’s accounting system, they cannot be moved, cannot be used as collateral elsewhere, and cannot be LP’d or staked like a simple token. Perps aren’t composable across DeFi.

7. PERPETUAL

Finally, with SMART tokens there’s no need to roll over expiring derivative positions. You get automatically rebalanced at zero cost