Digital Options

Digital Options Overview

A Digital Call Option pays off a fixed amount if underlying asset price ends up above a certain level at expiry.

A Digital Put Option pays off a fixed amount if underlying asset price ends up below a certain level at expiry.

Placing Digital Option Orders

1. In the Market tab, select Digital Options

2. Enter your order parameters

   • Type: enter the contract you want to trade: CALL or PUT

   • Side: "+" indicates a LONG/BUY position on the contract selected, "–" indicates a SHORT/SELL position on the contract selected. (Note: a LONG PUT position is a SHORT position on the underlier)

   • Size: The exposure equivalent of your desired asset. Entering 1 means you are trading an option contract for one unit of the underlier.

   • Strike: The option strike price which will determine the payoff at maturity.

   • Unit Price: This is the order limit price which will be entered into the auction. The system feeds a suggested price, which is a theoretical mid price based on Ithaca protocol proprietary pricing model: these prices are not tradable neither are they guaranteeing a fill of entered. These prices are meant to help anchor a limit price to be entered that may have higher probability of a match. The indicated implied volatility is calculated by the same model.

3. Verify Order Summary

   • Order limit: Order price

   • Collateral requirement: The amount required to be locked so as to ensure that the order enters the auction.

   • Platform fee: Fee to be paid in case of execution.

   • Total premium: The total to be paid net of fees.

4. "Submit to Auction" and approve your transaction in your wallet

Digital Options Contract

Item	Description
Products	Binary Call Option (Binary Call) Binary Put Option (Binary Put)
Payout Formula	Call if Reference Price > Strike then 1, else 0 Put if Reference Price <= Strike then 1, else 0
Underlying	WETH/USDC
Settlement Style	Ithaca settlement
Premium Currency	USDC
Strike Currency	USDC
Collateral Currency	Call USDC Put USDC
Collateral Amount	Call 1 Put 1
Collateral Management	Fully collateralized, pre-funded
Multiplier	1
Reference Price	ITHACA Reference Fixing
Expiry Dates	( Ithaca Expiry )