Settlement Rules

By default, all Regular and Custom Contracts are Auto-Exercised at Maturity if and only if the contract has exercisable intrinsic value. All contracts are ‘cash settled’ in the sense that no party, long or short holder has to provide any additional funds during settlement. All settlement pay-outs to both. long and short holders of contracts are being made from locked-up collateral amounts.

It is important to note that due to the collateral optimisation mechanism on the Ithaca Trading Platform, the currency of the locked-up collateral amount can be either the underlying asset or USDC and the pay-outs to long and short holders during the settlement process could happen in either asset without the information being available prior to the expiry.

Participants however will be able to specify their preference settlement currency and will be able to enter into spot transactions to exchange the settlement currency into their preferred currency should they be different.

An optimal asset auction will be set up right after each expiry auction

Contracts cannot be early exercised.

Contracts cannot be exercised if they do not have exercisable intrinsic value at Maturity.

Contracts with exercisable intrinsic value at Maturity must be auto-exercised.

Product Type

Vanilla Call Option: Exercisable intrinsic value if the Settlement Reference Price is above the Strike

Vanilla Put Option: Exercisable intrinsic value if the Settlement Reference Price is below the Strike

Call Spread Option: Exercisable intrinsic value if the Settlement Reference Price is above the Lower Strike

Put Spread Option: Exercisable intrinsic value if the Settlement Reference Price is below the Upper Strike

Binary Call Option: Exercisable intrinsic value if the Settlement Reference Price is above the Strike

Binary Put Option: Exercisable intrinsic value if the Settlement Reference Price is equal or below the Strike

Up-And-Out Call Option: Exercisable intrinsic value if the Settlement Reference Price is below the Barrier and equal or above the Strike

Up-And-In Call Option: Exercisable intrinsic value if the Settlement Reference Price is equal or above the Barrier and equal or above the Strike

Down-And-In Put Option: Exercisable intrinsic value if the Settlement Reference Price is below the Barrier and equal or below the Strike

Down-And-Out Put Option: Exercisable intrinsic value if the Settlement Reference Price is equal or above the Barrier Level and equal or below the Strike Price

Forward Contract: Exercisable intrinsic value if the Settlement Reference Price is above Zero

All Contracts on the Ithaca Platform are being Auto-Exercised.

If a contract has no exercisable intrinsic value, the Final Settlement Amount is 0.