Zero Strike Call Option Contract on YFI token with maturity of 2 October 2020. Each contract gives the right to receive the Chainlink price of 0,005 YFI at expiration.
Call option, European style
Opium multisig with price from Chainlink price feed
Strike price, DAI
2 October 2020 8:00 UTC
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
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.