Credit Default Swap on WBTC
IT IS AN EXAMPLE OF CDS ON WBTC, UP-TO-DATE INFORMATION SEE ON OPIUM.EXCHANGE
0x973f0ec84f39a5d84f561cbd34f903fde4caccc0a955e435cc1c3ee2eedca89b
CDS Contract on WBTC/BTC price depreciation with maturity of 1 November 2021. Contract pays up to 1000 yDAI and behaves as an insurance for WBTC price.
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Type | CDS |
Underlying | WBTC/BTC price depreciation |
Oracle | Chainlink USDT/USDC price feed |
​ | 0xc7e91df61d9655659d854b2603a95697f17cc68c |
Contract size | 1 000 |
Trigger price | 0,05 |
Settlement | yDAI |
Buyer Margin* | 0 yDAI |
Seller Margin** | 1000 yDAI |
Expiration | 1 November 2020 8:00 UTC |
Long wins^ | debt left * contract size |
Short wins^ | premium at settlement - any win of long |
​ | ^capped by the initial margin |
The derivative fee is 2.5% of the profit (only charges to profit makers) and received by derivative author
maximum risk of buyer; *Maximum risk of seller and maximum gain of buyer; cds contract traded with open price with via order book
A credit default swap (CDS) is a financial derivative or contract that allows an investor to "swap" or offset his or her credit risk with that of another investor.
For example, if a lender is worried that a borrower is going to default on a loan, the lender could use a CDS to offset or swap that risk. To swap the risk of default, the lender buys a CDS from another investor who agrees to reimburse the lender in the case the borrower defaults.
CDS requires a premium payment to create the contract, which is like an insurance policy.
A credit default swap is the most common form of credit derivative and may involve municipal bonds, emerging market bonds, mortgage-backed securities or corporate bonds.
