Highlights
This topic will cover how we handle the cost and payoff for every deal
Traditionally, hedges are priced in dollars. However in our approach we don't not rely on one currency to price our hedges or loans during writing, purchasing, and settlement.
More information on how Loans, Hedges, and Swaps are priced here:
Value is certain
We use the quote or paired currency of any ERC-20 token to value it. As detailed in the next chapter. Each trade carries a fixed premium or cost, determined by the trade writer to the taker. This amount is released immediately to the writer as soon as the taker buys the deal. This applies for only for Call Options, Put Options and Loans. The writer can withdraw the funds for use outside the protocol.
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