Weekly Call Option on YFI/DAI
IT IS AN EXAMPLE OF CALL OPTION ON YFI/DAI, UP-TO-DATE INFORMATION SEE ON OPIUM.EXCHANGEโ
0x00293fbd000b7c6a4b1b8834d11d54c1e1d913c064779684ddd08fd221273abe
Call Option Contract on YFI price with 60% margin requirement and maturity of 2 October 2020. Each contract gives the right to buy 0,01 YFI for 400 DAI at expiration.
Type | Call Option, European style |
Underlying | YFI/DAI price |
Oracle | Opium multisig with price from Chainlink price feed |
โ | 0xc54bcc3a5bf2af21bc9a855b3d1291b4847eec90 |
Contract size | 0.01 YFI |
Strike price, DAI | 40000 |
Settlement | DAI |
Buyer Margin* | 0 DAI |
Seller Margin** | 240 DAI |
Expiration | 2 October 2020 8:00 UTC |
Long wins^ | max(0, Oracle price - Strike price) |
Short wins^ | premium at settlement minus any win of long |
โ | ^capped by initial margin |
The derivative fee is 0,25% 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
A Call Option Contract is a derivative product and is a right but not an obligation to buy a commodity, currency, or other instruments at a predetermined price at a specified time in the future.
Opium.Exchange offers several of its trading products in the form of a Call Option Contract with crypto cash settlement.
Option contracts do not require traders to post 100% of collateral as margin, because of this you can trade with leverage of up to 100x on some Opium.Exchange contracts.
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.
