Atlantic Options are specialized options that are directly integrated with a whitelisted partner protocol. When purchased, the option collateral can be moved in a gated manner between our Atlantic contracts and a partner’s contracts. This allows for the creation of novel Atlantic Products as outlined below.
Providing liquidity in Atlantic Options provides identical payoffs to standard option writers. Moved collateral earns interest paid as funding on top of the usual premiums, allowing writers to benefit from an additional source of yield whilst maintaining the same risk exposure.
Atlantic Options refers to a suite of products and thus the benefit to option buyers depends on the specific Atlantic product used.
Atlantic Straddles is integrated with GMX.
Purchasers gain bidirectional price exposure, allowing them to profit from price action in either direction so long as volatility exceeds premiums paid.
Atlantic Liquidation Protection is integrated with GMX.
Purchasers cannot be liquidated, allowing them to maintain their long bias even in the event of large wicks. The strike price and number of options to be purchased is algorithmically determined based on the user's liquidation price and position size.