Questions, answered
The short version of how OptionsPad works. For the full walk-through see how it works.
A launchpad on Robinhood Chain. You launch a coin on the Pons V2 bonding curve, and OptionsPad opens an options market on it right away. Traders buy calls and puts on the coin and everything settles in ETH.
Anyone with a wallet on Robinhood Chain. There is no listing committee and no approval queue. Pay the Pons launch fee, seed the market pool, and the coin is live with its options market.
A call pays when the coin ends above the strike at expiry. A put pays when it ends below. You pay a premium up front, and that premium is the most you can lose.
Each contract has a notional in ETH. A call pays the notional times how far above the strike the coin settles, up to one full notional (a doubling). A put pays the notional times how far below, which is at most the notional when the coin goes to zero.
From the coin's market pool, seeded by the launcher and topped up by every premium paid. A contract can only be opened if the pool can cover its full payout, so the money is reserved before the contract exists.
With a Black-Scholes model on the live curve price, using the coin's realised volatility from recent ticks. The house adds a fixed markup on top of the fair value and buys contracts back at fair value minus the same markup.
Yes. Every open contract shows a live buy-back price. Close it and the value goes to your balance immediately. Otherwise it settles on its own at the first price recorded after expiry.
Deposit ETH once to your OptionsPad balance, trade as often as you like, and withdraw back to your own wallet at any time. Coins bought on the curve are plain ERC-20 tokens in your wallet already.
Still curious?
Open a coin and watch the premium move. Nothing costs anything until you buy.