Bonus

Pay a premium to be long the underlying while protecting downside up to a barrier below the strike.

Description

i. Select (WETH) Price Reference.

ii. Select desired (WETH) Downside Protection Level.

iii. Protection extinguished at Knock Out Barrier.

User selects an ETH price reference.

All outcomes will be defined around this initial price reference.

The user desires to purchase ETH and enjoy its potential price appreciation. The user simultaneously desires to protect his downside risk up to the knockout ( KO ) barrier that he can select.

Lower than the knockout barrier price at expiry the user’s exposure remains the one as if ETH is purchased and held without any protection.

The protection cost inclusive price which is the input level at which the user starts enjoying the net ETH upside constitutes an input.

It is expressed in the same ETH price units and user can further input his desired size; which reflects the amount of ‘ protected ‘ ETH, he wants to purchase.

In the case of bonus order, the protection consists of being protected at the reference price level at expiry up to the knockout barrier.

In the case of twin win order, the protection consists of not only being protected but effectively flipping one’s exposure to short ETH up to the reference price; therefore one wins on both the upside post the breakeven price reference and makes money equivalent to having shorted ETH down to the knockout price.