# Example 2

**Portfolio:**

<table data-header-hidden><thead><tr><th width="119"></th><th width="146"></th><th width="122"></th><th></th></tr></thead><tbody><tr><td>Product</td><td>Underlying</td><td>Strike</td><td>Quantity</td></tr><tr><td>Put</td><td>WETH/USDC</td><td>    2000</td><td>-1</td></tr></tbody></table>

1. If ETH → ∞, 0 ETH required.
2. USDC collateral at specific ETH at expiry:

<table data-header-hidden><thead><tr><th width="127"></th><th width="138"></th><th width="80"></th><th width="99"></th><th width="143"></th><th></th></tr></thead><tbody><tr><td><br></td><td></td><td></td><td></td><td>ETH @ Expiry</td><td>ETH @ Expiry</td></tr><tr><td>Product</td><td>Underlying</td><td>Strike</td><td>Quantity</td><td>0</td><td>2000</td></tr><tr><td>Put</td><td>WETH/USDC</td><td>2000</td><td>-1</td><td>-2000</td><td>0</td></tr><tr><td>Collateral Required</td><td></td><td></td><td></td><td>2000</td><td>0</td></tr></tbody></table>

3. Compute 1) – 2):

| <p><br></p>              | WETH Price @ Expiry | WETH Price @ Expiry |
| ------------------------ | ------------------- | ------------------- |
| <p><br></p>              | -                   | 2000                |
| USDC equiv of 0 ETH      | -                   | -                   |
| USDC collateral required | 2000                | -                   |
| Net amount               | -2000               | -                   |

4. Total collateral required = 2000 USDC


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