Weekly Put Option on gas price
IT IS AN EXAMPLE OF PUT OPTION ON GAS PRICE, UP-TO-DATE INFORMATION SEE ON OPIUM.EXCHANGE​
0x71dc59b58b412522c11aae3d37fe0b4ec443a3e8e41445b984108aca17b984c4
Put Option Contract on Ethereum gas price with 30% margin requirement and maturity of 2 October 2020. Each contract gives the right to sell 10^7 gas for total of 1,5 ETH equally across the week.
Type | Put Option |
Underlying | Average weekly gas price, gwei* |
Oracle | Opium Multisig with Etherscan.io data feed |
​ | 0x5d96dC0bD4989Dbce0eDF8b5fb49987C6d2d2b35 |
Contract size | 10'000'000 gas |
Strike price, gwei | 150 |
Settlement | WETH |
Buyer Margin** | 0 WETH |
Seller Margin*** | 0,45 WETH |
Expiration | 2 October 2020 8:00 UTC |
Long wins^ | max(0, Strike price - Oracle price) |
Short wins^ | premium at settlement minus any win of long |
​ | ^capped by initial margin |
The derivative fee is 0,25% of the profit (only charges to profit makers) and received by derivative author
*Average gas price according to etherscan from Friday till Thursday inclusively; Option P&L will be calculated against this value **Maximum risk of buyer; ***Maximum risk of seller and maximum gain of buyer; option contract traded with open price with via order book
A Put Option Contract is a derivative product and is a right but not an obligation to sell 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 Put 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.
