Weekly Binary Put Option on COMP token

OEX-BPUT-COMP-2OCT-120/100

0xd3eee9dc54109bcbbed601d0547675cdaa2b47aafc15c5e7b628c90e38c171f9

SHORT DESCRIPTION

Binary Put Option Contract on COMP token with maturity of 2 October 2020. Each contract pays 100 DAI at expiration if matures in-the-money.

Type

Binary Call option, European style

Underlying

COMP/DAI price

Oracle

UniswapV2 COMP->ETH->DAI on-chain spot price

0x81A9ad15ED0a45d20D25a699D19062F598F4B3ae

Contract size

100 DAI

Strike price, DAI

120

Settlement

DAI

Buyer Margin*

0 DAI

Seller Margin**

100 DAI

Expiration

2 October 2020 8:00 UTC

Long wins^

100 DAI if COMP price is less than 120 DAI at maturity

Short wins^

premium at settlement minus any win of long

^capped by the initial margin

The derivative fee is 1% 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 binary option is a financial exotic option in which the payoff is either some fixed monetary amount or nothing at all.

This is a cash-or-nothing binary option. The seller pays some fixed amount of cash if the option expires in-the-money while the buyer pays the agreed premium to the seller.

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.