> ## Documentation Index
> Fetch the complete documentation index at: https://docs.arcus.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Stock Tokens

> What Stock Tokens are on Arcus — self-custodied, on-chain tokenized equities traded spot with zero fees, 24/7, and how spot differs from perps

**Stock Tokens** are on-chain, tokenized representations of equities that you own outright and trade **spot** — no leverage, no [funding](/concepts/perpetuals/funding), no [liquidations](/concepts/perpetuals/liquidations). Spot trading is **free at launch** and runs **24/7**. This is distinct from [perps](/concepts/perpetuals/overview), where you take leveraged exposure against margin rather than holding the asset.

<Note>
  This page is conceptual. For how spot trades are priced and settled, see [Spot RFQ](/concepts/spot-rfq); for how long-tail names are represented, see [Wrapped tokens](/concepts/wrapped-tokens).
</Note>

## Self-custody

Spot is **non-custodial**: your Stock Tokens live in your own wallet, and trades settle directly on-chain between wallets. Arcus never holds your funds or keys.

Because you sign for what you own, trading a Stock Token from a self-custodial wallet prompts you to **sign each trade**, plus a **one-time authorization** the first time you interact with a given token.

## How trading and delivery work

Spot trades are priced and settled through a [request-for-quote (RFQ)](/concepts/spot-rfq) flow: you request a price, professional makers return firm quotes, and the best ones settle atomically in a single on-chain transaction — slippage-bounded and non-custodial.

What you actually receive depends on liquidity in the underlying token:

* **Real token (preferred).** When a native fill against the tokenized equity is available, you receive the real token directly.
* **Wrapped placeholder (fallback).** For long-tail names where no native fill is available, a whitelisted maker mints a [wrapped token](/concepts/wrapped-tokens) (e.g. `wTSLA`) that behaves like the underlying in your account and is automatically settled to the real token on the maker's cadence — no action needed from you.

Either way you hold spot exposure to the equity. A wrapped token is a **delivery mechanism for a Stock Token**, not a separate product.

## Backing

Each Stock Token is backed by reserves of the underlying equity (or cash and equivalents when the underlying is on loan), held by the token issuer. Your tokens are yours to hold, transfer, or trade.

## Spot vs. perps

|                        | Stock Tokens (spot)                 | Perpetuals                                         |
| ---------------------- | ----------------------------------- | -------------------------------------------------- |
| What you hold          | The tokenized asset, in your wallet | A leveraged position against margin                |
| Leverage               | None                                | Up to 50x                                          |
| Funding / liquidations | None                                | Yes                                                |
| Custody                | Self-custodied on-chain             | Collateral in on-chain settlement contracts        |
| Fees                   | Free at launch                      | Maker/taker [fee tiers](/concepts/perpetuals/fees) |

## Control and limits

Arcus is non-custodial and cannot move or seize the Stock Tokens you self-custody. Two narrow, network-level exceptions exist: transfers to sanctioned addresses are blocked by compliance controls, and a [wrapped](/concepts/wrapped-tokens) placeholder can be force-settled to its real token (which only ever delivers what you are owed).

## Learn more

<CardGroup cols={2}>
  <Card title="Spot RFQ" icon="arrow-right-arrow-left" href="/concepts/spot-rfq">
    How spot trades are quoted and settled atomically.
  </Card>

  <Card title="Wrapped tokens" icon="layer-group" href="/concepts/wrapped-tokens">
    How long-tail equities are represented until settled.
  </Card>
</CardGroup>