Put Options

P2P ERC20 put options written, bought, settled on the blockchain.

A put option gives the holder or buyer of the option, the right, but not the obligation, to sell a specific amount of an underlying assets (ERC20 tokens) at a predetermined price (strike price) within a specified period.

A put option provides a form of insurance or hedging against potential price declines. If the market price of the token falls below the strike price, the holder can exercise the put option, selling tokens at the higher strike price rather than the lower market price, limiting their losses.

This settlement process is synthesized in our settlement function to give the same outcome in one function call, without needing to sell tokens.

Put Option Features:

• Underlying Asset or tokens

• Strike price quoted in paired currency

• Expiry date or duration

• Cost or premium to buy hedge, quoted in paired currency

• Hedge writer always has to provide collateral, thus the payoff (if any) to the taker is always in underlying assets, whereas for writer payoff is always in paired currency of the underlying tokens.

Screenshot

Example

You can go in depth with how calculations are made in this section:

P/L Calculations

Or continue to learn about the use cases first.