Contingent

CONTINGENT

Leverage with a capped crash. Fully encrypted.

Contingent is a confidential derivatives protocol on Arbitrum. Traders open leveraged ETH perps and, in the same transaction, buy protection from a public prediction market. A liquidation that would wipe out the position becomes a small, known premium. Every position is encrypted with Fhenix FHE, and everything settles in USDG.

THE PROBLEM

1. On-chain leverage is fully public. Anyone can read a position's size, side and liquidation price. In a sharp move, that map of liquidation levels shows exactly where forced selling will happen, so cascades and stop-hunts feed on it.

2. Traders have no simple way to insure a leveraged position. Options are fragmented, hard to price and rarely available on-chain for the exact scenario that liquidates you.

3. Prediction markets already price these scenarios ("will ETH be above $2,500?"), but they are public too. Buying protection there reveals the direction of your real position.

THE SOLUTION

1. Encrypted perps. ETH-PERP at 1-10x against a house liquidity pool. Collateral, size and direction are FHE ciphertexts, so nobody can compute your liquidation price.

2. Prediction-market protection. A YES/NO event market prices "ETH above the strike at expiry". A long buys NO, a short buys YES. The crash that liquidates you pays out the protection, and the market's odds are the premium, so no volatility model is needed.

3. One transaction, direction hidden. The ProtectedPerp contract opens the perp and its protection atomically. The protection side is computed on the ciphertext, so even the protection cannot leak which way you are positioned.

LPs underwrite the event market and earn the premiums. Keepers run liquidation checks and settlement. Chainlink prices the perp and resolves the event.

WORKED EXAMPLE

LONG ETH 5x with 100 USDG collateral, entry about $2,720. Protection: NO on "ETH above $2,500", cover 100, premium 35 USDG.

ETH rallies +8%: perp alone +40, protected +5

ETH flat: perp alone 0, protected -35

ETH falls below the strike: perp alone -59, protected +6

ETH crashes and the perp is liquidated: perp alone -100, protected -35

A wipe-out of -100 becomes a known -35. You give up a slice of upside to cap the tail, and the public market sets the price.

WHAT'S LIVE

Everything runs on the deployed contracts on Arbitrum Sepolia.

Perps: wrap USDG to confidential cUSDG, deposit encrypted collateral, open LONG or SHORT at 1-10x, open a protected position in one transaction, close both legs. Positions are masked by default and revealed only in your own browser.

Market: the public prediction market with live odds, YES/NO pools and a live Chainlink ETH/USD chart.

Hedge: open an encrypted binary derivative directly, with a live payoff chart.

Underwrite: LPs deposit USDG into the vault that is the counterparty to every hedge.

Settle: resolve the event from Chainlink, settle positions and sweep premiums to LPs. Only the winning payout and the aggregate premium are decrypted.

PRIVACY

Hidden: collateral, size, direction, liquidation price, protection side and cover.

Public: leverage, entry price, owner, event odds and strike.

Keepers learn one bit only: whether a position is liquidatable or not.

Premiums and payouts are computed on ciphertext, branch-free, so nothing leaks through gas or control flow.

TECH

14 contracts, all source-verified on Arbiscan

39 Foundry tests passing

Fhenix CoFHE for encryption and threshold decryption

Chainlink ETH/USD for mark price and event resolution

USDG as the settlement asset

Next.js frontend with client-side encryption

PROGRESS DURING HACKATHON

Contingent was built from scratch during the Buildathon. The first commit was on 23 Sep 2026, and every flow now works end to end on Arbitrum Sepolia.

SMART CONTRACTS

Wrote and deployed 14 contracts, all source-verified on Arbiscan.

Encrypted ETH perps at 1-10x against a house liquidity pool, with collateral, size and direction stored as FHE ciphertexts.

ProtectedPerp: opens a perp and its prediction-market protection in one transaction, with the protection side computed on the ciphertext.

Encrypted binary hedges, an LP underwriter vault, a public YES/NO event market and Chainlink-based event resolution.

Confidential USDG (cUSDG) wrapper and an encrypted collateral vault shared by perps and hedges.

Liquidation checks that reveal one bit only, and settlement that decrypts only the winning payout.

39 Foundry tests passing.

FRONTEND

Full Next.js app with five tabs: Perps, Market, Hedge, Underwrite and Settle.

Inputs are encrypted in the browser, and balances and positions are decrypted only in the owner's browser.

Live Chainlink ETH/USD chart with the YES and NO zones around the strike, and a premium calculator.

Deployed at https://contingentine.xyz

TESTING AND DEMO

Automated live-chain test and a browser end-to-end test, both running real transactions

and real FHE on Arbitrum Sepoli

Manual MetaMask click-through of every tab.

Recorded demo video with voice-7ZywqFJs

ALSO BUILT, NOT YET IN THE LIVE

Uniswap v4 EventHook: deployed,locks swaps on an odds pool after the event resolves.

1inch swap and Aqua top-up rout: tested, switched off ontestnet.

NEXT STEPS

Mainnet beta: security review, Arbitrum One with real USDG, automated rolling event rounds, keeper bots and deposit

Deeper markets: odds on a Uniswap v4 pool, 1inch routes switched on, more assets (BTC, SOL) and strike ladders.

Distribution: a protection module for partner perp venues and wallets.

We are actively looking for grants and pre-seed funding to take Contingent to a mainnet beta, and we welcome conversations with investors and ecosystem partners.