Every position is collateralized for its maximum obligation at the moment it opens. That single rule is why Pulsar has no liquidator.
What backs each position
| Position | Collateral held |
|---|---|
| Covered call (written) | The tokenized share itself |
| Cash-secured put (written) | Strike × size in USDC |
| Long call / long put | The premium, paid up front |
| Defined-risk spread | The spread's maximum loss |
| Collar | The share. The put funds the call's floor. |
Why nothing gets liquidated
Because the maximum loss is locked in when you enter, no position ever needs to be closed by a third party.
- No liquidation price exists.
- There is no auto-deleveraging.
- The worst case is known before you sign.
Cross-margin keeps the rule
With cross-margin, offsetting defined-risk legs are netted, so a hedged book needs less collateral than the sum of its parts. Every position's maximum loss stays reserved, so cross-margin never introduces a liquidation price.
The credit line keeps the rule
The options-backed credit line is sized to a position's protected floor, so it never needs a liquidator either.