Bet Contract

Item
Description

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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