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Selling opens a bond

A sell is split three ways, in this order.

Sell 1000 C4
 ├─  30 C4  (3% of gross)          → tax, converted to ETH, paid to the creator
 ├─  97 C4  (10% of the remaining) → YOUR bond, entry rate 10%/day
 └─ 873 C4                         → sold into the pool; you receive the ETH

The order matters: the tax comes first, and the 10% retention applies to what is left after it. On 1000 tokens that is 10% of 970, or 97.

What you actually walk away with​

You receive the ETH proceeds of 873 tokens out of 1000, a 12.7% haircut. In exchange, 97 tokens are registered as a bond in your name and start earning immediately.

During the launch window the tax is higher than 3% (see the creator tax), so the haircut is temporarily larger. The interface shows the live figure before you sign.

The exemption​

The split above is the default, not a universal fact. Every bond you open grants you a retention-free selling allowance of 5x the principal it opened with, and the bond above counts: a sell that retains 97 tokens hands you 485 of allowance on the way out. While a sale fits inside what remains of it, the sell pays the 3% tax and nothing else: no retention, no new bond. Each exempt sale consumes its amount. Past the quota, the full 10% returns and a sale mints a bond again, which grants afresh.

The route does not decide it, the tokens do. The exemption applies wherever the sale happens: the official app, an aggregator, a direct pool swap. What it asks for is proof that the wallet spending the allowance is the wallet selling, and there are two ways to show that. Either the sale came through the official app, whose router reports its own caller to the hook, or the C4 being sold left that wallet during the same transaction. A balance that visibly went down cannot be borrowed from anybody.

So naming someone else's wallet in the swap data buys nothing, because their wallet did not move, and neither does merely being the one who signed the transaction. The allowance and the tokens it pays for have to belong to the same wallet. Where that cannot be seen, the sale pays the retention exactly like a sale from someone who never committed, and nothing is lost there: the 10% comes back as a position that earns. What committing earns you is detailed in Opening a bond.

The allowance belongs to the wallet the bond was opened for, and nothing moves it afterwards. It is not a property of the position that a later holder could inherit, and compounding cannot grow it either: the figure was struck at the opening and is never revised. That is what makes it a lifetime cap rather than one that quietly resets.

What the protocol refuses​

  • Exact-output orders. Only exact-input swaps are supported.
  • Partially filled sells. If you submit a sell with a tight price limit so that only part of it executes, the transaction reverts.

That second rule exists because of a real flaw found during the July 2026 audit: when the retention was sized on the amount requested while the proceeds came from the amount actually traded, an attacker could open a bond with a reference value of zero and break the protocol for the price of one token. Rejecting partial fills removes the gap at its source. Trading through the app is unaffected: it always swaps to the range bound.