Weekly Zero Strike Call Option on YFI token

OEX-ZEPO-0.01*YFI-2OCT-200CAP

0x06411d161a8519dc5425734a17ad172ef601b445740a0405f2fbdd5ab7fc768e

SHORT DESCRIPTION

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.

Type

Call option, European style

Underlying

YFI price

Oracle

Opium multisig with price from Chainlink price feed

0xc54bcc3a5bf2af21bc9a855b3d1291b4847eec90

Contract size

0,005 YFI

Strike price, DAI

0

Settlement

DAI

Buyer Margin*

0 DAI

Seller Margin**

200 DAI

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.