Weekly Zero Strike Call Option on NXM token

OEX-ZEPO-1*NXM-2OCT-0.15CAP

0x5e4d056f83efbf221186149379d82334c7104055913ef8c7b69affcfa4cd4bb8

Short description

Zero Strike Call Option Contract on NXM token with maturity of 2 October 2020. Each contract gives the right to receive the Nexus Mutual platform price of 1 NXM at expiration.

Type

Call option, European style

Underlying

NXM price

Oracle

Opium multisig with price from Nexus Mutual platform

0x1a2b234fa590514e8a3a5f32937cb0efa4542106

Contract size

1 NXM

Strike price, WETH

0

Settlement

WETH

Buyer Margin*

0 WETH

Seller Margin**

0,15 WETH

Expiration

2 October 2020 8:00 UTC

Long wins^

Oracle price

Short wins^

premium at settlement minus 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; option contract traded with open price with via order book

Long description

A European call option with a strike price of zero or close to zero, usually traded in countries where there may be obstacles pertaining to the transfer of securities especially stock. The purchaser of the option will definitely exercise it, so it is the same as owning the underlying asset and the seller has full offsetting participation in the stock price.

At maturity, the buyer of ZEPO will receive the price of the underlying asset from the seller.

The market price of ZEPO should replicates an expected market price of the underlying.

All margin on Opium.Exchange is denominated in stable coins or any ERC20 coins, allowing traders to speculate on the future value of its products only using stable cryptocurrency or other Ethereum based tokens.

"European style" means options cannot be exercised before expiration, but can only be exercised at expiration.

"Cash settled" means when a cash settled option is exercised the writer of the contract pays any profit due to the holder in stable coins (or any ERC20 coins specified in the contract) rather than any asset transfer taking place.