Profit/Loss Mechanism

For each round, the profit is derived from the total USDT value of losing positions, which is distributed among the winning positions:

• SPOT Positions: Losers forfeit 50% of their position value. The remaining 50% in USDT can be redeemed.

• Leverage Positions: Losers lose the entire margin.

Profit Calculation:

Profit Distribution:

• Winning Position Holders: 99% of the total profit is distributed among winning shares, proportionate to the number of shares held.

• Protocol: The remaining 1% is allocated to the protocol.

At the end of each round (after the strike), positions are determined as profitable or loss-making based on the strike price SSS and the ETH price PPP at the time of the strike:

• Profitable (Winner):

  • If it is a CALL and P > SP

  • If it is a PUT and P ≤ SP

• Loss-making (Loser):

  • If it is a CALL and P ≤ SP

  • If it is a PUT and P > SP

Example: A user holds 100 CALL shares at a strike price of 1000 USDT, with a total of 500 CALL shares in the round. If the PUT position's total value is 10,000 USDT, the user’s profit will be:

Upon redemption, the user will receive 990 USDT plus the initial position value in USDT.

• Loser:

  • SPOT Positions: Losers can redeem 50% of their initial USDT position value.

  • Leverage Positions: Losers forfeit their entire margin.