Bet Contract
Products
Inside Bet
Outside Bet
Payout Formula
Inside Bet Payoff: Upper strike - lower strike
if lower strike lower < reference price < upper Strike , 0 otherwise
Outside Bet
- (Upper strike - lower strike)
if lower strike lower < reference price < upper Strike , 0 otherwise
Order entry: risk bet amount to earn payoff
Underlying
WETH/USDC
Settlement Style
Cash
Exercise Style
European, auto-exercised
Premium Currency
USDC
Settlement Currency
USDC
Strike Currency
USDC Depending on user’s portfolio subject to collateral optimization settlement currency could be different.
Strike Currency
USDC
Collateral Currency
USDC
Collateral Amount
Inside bet: USDC premium
Outside bet ( upper strike - lower strike ) in USDC
Collateral Management
Fully collateralized, pre-funded
Multiplier
1
Strike Price
Fixed standardized published levels
Reference Price
ITHACA Reference Fixing
Expiry Time
1st focal auction on relevant expiry Friday
Maximum upside and downside is known at the time of investment
Opportunities:
Range trading vs directional trading
Possibility to make profits in a sideway or flat market
Investors may choose from different strike prices to express their views on the underlying price
Risks:
Profit potential is capped by the pre-determined payment
Maximum loss is limited to initial investment
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