Option specs
Dopex Option Pool options are built to closely mimic Deribit - the market leader in cryptocurrency options as much as possible considering it's dominant market share in the options space. Specifications for Dopex options are as follows:
Daily, Weekly, Monthly
Expiry Time
8:00 AM UTC
Base/quote asset
On-chain pricing
Black-scholes based on IV from oracles
combined with a function to estimate volatilty
smile based on past data
Margin requirements (writing)
Fully backed by collateral
Calls - Base asset
Puts - Quote asset (USD stablecoins)
Token standard
ERC20 Transferrable to other exchanges for arbitrage
Dopex options come in the form ERC20 based tokens and can be found for instant purchase on the Dopex Option Pools (Options AMM). They can be exchanged on any existing AMM (like Uniswap, Sushiswap etc), OTC portals, as well as centralized exchanges in the future considering they are ERC20s - giving exchanges instant adaptability for Dopex option tokens.

Exercise & Settlements

All option expiries are at 8:00 AM UTC and can be exercised during a 1 hour window before the expiry time i.e between 7:00 AM UTC to 8:00 AM UTC.
Settlements on option exercises happen without requiring the underlying asset and hence are net settlements. The PnL (Profit & Loss) of the option is calculated and if it is +ve then the exercise can go through which burn the option tokens (doTokens) and transfer the PnL in the settlement asset to the user. PnL is calculated in the following manner:
For CALLs (settlement is done in the base asset):
PnL=((PriceStrike)Amount)/PricePnL = ((Price - Strike) * Amount) / Price
For PUTs (settlement is done in the quote asset):
PnL=(StrikePrice)AmountPnL = (Strike - Price) * Amount
Here Price is the current price of the asset and Amount is the amount of options being exercised.
The settlement fee (exercise fee) is deducted from the final PnL. To learn more about fees, visit the fees section.
Settlement Asset
ETH Calls
ETH Puts
BTC Calls
BTC Puts
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