Scenarios

Example scenarios and how they can play out for investors

This is the logical approach we expect investors to have when viewing trades on our platform.

Taker Perspective

Call Option

Take the right to buy XXX tokens from Writer for xxxx if price goes above xxx in the next xxx days. Profit increases for taker as price goes higher. Profit is the difference in strike and market value. Loss is premium paid (in quote currency) to writer, if price is below strike price at expiry.

Put Option

Take the right to sell XXX tokens to Writer for xxxx if price goes below xxx in the next xxx days. Profit increases for taker as price goes lower. Profit is the difference in strike and market value. Loss is premium paid in quote currency) to writer, if price is above strike price at expiry. If price goes in anticipated direction, the difference between strike price and current price is the profit per token for the Taker.

Equity Swaps

Take full value exposure to the underlying tokens, XXX, offered in trade by Writer. If price goes up, gains belong to the Taker. If price goes down, losses belong to the Taker. During the duration of a swap, profit is uncapped and depends on how the underlying tokens swapped soar in price. Loss is capped to the maximum value of collateral/premium you deposit to take the swap.

Writer Perspective

Call Option

Offer guarantee to sell XXX tokens to Taker for xxxx if price goes above xxx in the next xxx days. Loss increases for Writer as price goes higher. Loss is difference in market value and strike value. Profit is premium paid (in quote currency) by Taker, if market price is below strike price at expiry.

Put Option

Offer guarantee to buy XXX tokens from Taker at market if price goes below xxx in the next xxx days. Loss increases for Writer as price goes lower. Loss is difference between strike and market value. Profit is premium paid in quote currency) by Taker if price is above strike at expiry. If price goes in anticipated direction, the difference between strike and current price is the profit per token for the option Taker.

Equity Swaps

Offer full value exposure to the underlying tokens, XXX, in trade to Taker. If price goes up, gains belong to the Taker until expiry or settlement date, Writer is locked in or guaranteed at Taker collateral value. Likewise, if price goes down, losses belong to the Taker. If value of Takers collateral is equal or less than the value to be compensated to Writer, then the Swap is settled liquidating all the Takers collateral.

Trade Loss Perspective

Underlying assets or tokens refers to the ERC20 tokens placed in the trade by the writer.

• Premium and Loss to Taker is always paid in the quote token of the underlying asset.

• Profit to Taker is always paid in underlying assets in the trade.

• Loss to Writer is always settled in the underlying assets.

• Profit to Writer is always paid in the paired currency of the underlying assets.