Oction Overview By Crypto Library

What Is OCTION?

As the the world’s 1st CeDeFi Options Trading Platform built on the Binance Smart Chain, OCTION represents a transformative technology that stands firmly in support of financial freedom backed by the liberty that Bitcoin provides globally through voluntary participation in a permissionless and decentralized network.

Use Cases

Buyers (Holders)
  • Buy Binance Coin (BNB) call or put options
  • Choice between American and European options
  • Through CeDeFi, no “matching” of buyers and sellers are required as liquidity pools provide liquidity to “take on” purchased option contracts
  • Options on BTC, ETH and other asset types will be added in the near future
Sellers (Writers)
  • OCTION liquidity pool will undertake all options purchased, aka be the “house”
  • Liquidity pool contributors would therefore represent the writers and earn from all premiums paid for each options contract
OCTION Token Holders
  • Earn a % of premiums paid for each options contract
  • Priority withdrawal for liquidity pool contributors (guaranteed and priority withdrawals)
  • Receive discounts on premiums paid for options contracts
  • Access to insurance vault to help mitigate positional risks for every options contract
  • Empowered with voting rights for potential changes to the existing parameters of the OCTION ecosystem

Why OCTION?

Lower Gas Fee
Lower gas fees compared to the Ethereum Chain

Zero-Time Decay
Zero-time decay as all orders are instantly and automatically taken up by writers (through the liquidity pool)

LiInstantquidity
No market maker is required to provide liquidity via sitting limit orders as all orders will be taken up against the liquidity pool

Lower Transaction Fees
Lower commissions compared to traditional options brokers

Decentralization
Being decentralized, OCTION prevents disruptions and interventions by centralized platforms (Example: Recent halt in trading by Robinhood for GameStop shares (NYSE: GME) on 28/1/2021)

Why Trade Options?

For Long-Term Investors
Investors that are currently holding crypto assets long-term can preserve wealth and hedge their risk against any short-term downside risks through options contracts. For example, by buying put options (an option to sell), investors are able to profit from any short-term price drops to mitigate losses in their long-term positions.

For Short-Term Traders
Traders looking to day trade can take quick positions in crypto assets through call or put options, depending on their anticipated market movement in the short-term. In addition to hedging against positional risks, traders can potentially achieve high upsides through favourable price movements whilst limiting losses to only the small premiums paid for options contracts.

For Beginners
For those new to crypto, the volatility in the crypto market can be daunting for some. Call and put options provides an avenue for low risk, high return trading potential. In the current bull market, sharp price movements allow for high return potential whilst potential losses will only be limited to the premiums paid for options contracts.

For Victims of Centralization
Users on centralized exchanges are always exposed to various risks, such as trade interruptions by the brokerage and price manipulation. OCTION eliminates this risk by being Public Blockchain-based, which ensures zero price manipulation and 100% transparency

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