What delta 1.0 means

Delta is sensitivity. When the stock moves one dollar, a delta 1.0 position moves one dollar with it, in the same direction, at the same time. The vault holds exactly enough perp exposure that each uTSLA mirrors Tesla tick for tick. No leverage on the backing, no shortfall, no tranche math.

You can verify this yourself. The vault's position size and the circulating certificate supply are both public, and their ratio is printed on the solvency dashboard at every attestation, next to the age of that attestation.

The vault's two legs

The first leg is the long position on the equity perp, opened at oracle price the moment you deposit tUSDG. The second leg is the tUSDG margin that collateralizes that position. Together they are the backing of your certificate: the position tracks the stock, the margin keeps the position alive.

Why it survives volatility

Because the exposure is linear and fully margined, a sharp move in the stock moves the certificate and its backing together. There is no moment where the asset is worth one thing and the backing another. Funding is the only slow leak, and funding is buffered first, which is a separate article.

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One certificate, one token's worth of exposure. Nothing else.

Where it can break (named plainly)

Three ways. An oracle failure, which is why minting pauses on stale or deviant prices while redemption continues at the last good price. Sustained negative funding beyond the buffer, which passes through as a transparent holding fee instead of a quiet depeg. And an extreme market gap faster than keepers can rebalance, which is what the staked insurance buffer exists to absorb. The stress parameters for all three are published.