The pricing.

delta.theta
2 min readNov 30, 2020

As we mentioned earlier the platform doesn’t have an internal token and doesn’t involve customers in minting or farming.

Every customer can buy or write an option for the appropriate pair. We will start with ETH/DAI.

We focus on real cryptocurrency stablecoins — like a DAI. We can not prove underlying for USDT . That’s why we don’t provide pairs for such stablecoins.

You trade/write contracts at the platform. Every contract is equal to the portion of the appropriate underlying asset. For ETH/DAI: 1 contract = 0.1 ETH and the platform’s commission is equal to 1.5 DAI for the contract.

If you would like to BUY an option you will pay commission to the platform immediately. If you would like to WRITE an option and this option was executed you will pay commission to the platform at the moment of execution or cancelation.

Simple examples:

  1. You would like to open a speculative position and believe in the growth of ETH. You launch the platform and see current offers for different strikes and expiration dates. You decide to BUY 10 contracts of ETH/DAI at the price of 14 DAI (as an example) per contract. You pay:
  • 10*1.5 DAI = 15 DAI the commission to the platform
  • 10*14DAI = 140 DAI premium to the SELLER.
  • That’s all.

2. In case you are a SELLER. You write the PUT (10 contracts; strike — 200 DAI, price/premium 14 DAI ). It means:

  • 10*1.5 DAI = 15 DAI the commission to the platform (frozen, you will pay after execution)
  • 10*14DAI = 140 DAI premium which you receive from a BUYER.
  • The platform will freeze 10 *200 DAI = 2 000 DAI as the possible obligations.

You write the CALL (10 contracts; strike — 200 DAI, price/premium 14 DAI ). It means:

  • 10*1.5 DAI = 15 DAI the commission to the platform (frozen, you will pay after execution)
  • 10*14 DAI = 140 DAI premium which you receive from a BUYER.
  • The platform will freeze 10*0.1 ETH = 1 ETH as the obligations.

In case if you write the PUT, the platform will freeze DAI equivalent. In case if you write the CALL the platform will freeze ETH equivalent. You pay the commission to the platform only for the Open Contracts. These are contracts that have been traded but not yet liquidated by an offsetting trade or an exercise or assignment.

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delta.theta

A Decentralized Options Order Book Trading Platform