Vault Bidder (Option Buyer)

options buyers purchase options to meet their speculative or hedging needs speculators high volatility is one of the key characteristics of long tail assets if speculators long or short on such assets by holding perpetual futures, they are highly likely to be liquidated, even with 5x leverage however, if they use options to long or short on these assets, they will be exempt from liquidation risk by buying out of the money options, they can leverage their positions up tp 1,000x hedgers options allow traders to hedge non linear risks typus will integrate amm swap and lending protocols to meet the long term and stable demand for options covered call vault bidder = covered call buyer https //docs typus finance/vault bidder option buyer#jcl7b call selling vault bidder = call buyer https //docs typus finance/vault depositor option seller#kgudu put selling vault bidder = put buyer https //docs typus finance/vault bidder option buyer#xoe5c covered call buyer a covered call https //docs typus finance/defi options vaults#18lfj vault bidder is a covered call buyer the buyer needs to bid the option when the vault is auctioned and pay premium (depositor's reward) either in underlying tokens (such as $sui) or stablecoins (such as $usdc) after an auction ends if the buyer decides to execute the contract as the call option expires, the underlying asset deposited by the seller will be transferred to the buyer, that is, cash settled in tokens example you pay 0 0625 sui to buy 1 sui call option duration 7 days current market price 1 sui = 10 usdc strike price 1 sui = 15 usdc contract size 1 sui call option premium the seller gets 0 0625 sui from you before vault settlement case 1 when settle price > strike price, you may gain if the price of sui rises strongly to 20 usdc when the call expires, you have the right to execute the call at this time, you get 0 25 sui token from the seller the amount is equal to the difference between the market price and the strike price at expiry market price at expiry 1 sui = 20 usdc strike price 1 sui = 15 usdc > executed by you vault settlement you get \[ (20 15) / 20 ] = 0 25 sui from the seller net pnl in sui you get 0 1875 sui ( 0 25 su 0 0625 sui = 0 1875 sui ) the seller loses 0 1875 sui if the price of sui rises slightly to 16 usdc when the call expires, you have the right to execute the call at this time, you get 0 0625 sui token from the seller the amount is equal to the difference between the market price and the strike price at expiry market price at expiry 1 sui = 16 usdc strike price 1 sui = 15 usdc > executed by you vault settlement you get \[ (16 15) / 16 ] = 0 0625 sui from the seller net pnl in sui you are breakeven ( 0 0625 sui 0 0625 sui = 0 sui ) the seller is breakeven too case 2 when settle price ≦ strike price, you lose if the price of sui stays below 15 usdc when the call expires, you will not execute the call market price at expiry 1 sui ≦ 15 usdc strike price 1 sui = 15 usdc > not executed by you vault settlement the seller doesn’t need to transfer sui to you net pnl in sui you lose 0 0625 sui the seller gets 0 0625 sui 👉🏻 start earning bid 🔎 vault analysis check historial performance 📚 read more bidder guide https //docs typus finance/bidder guide call buyer a https //docs typus finance/defi options vaults#fguei vault bidder is a call buyer the buyer needs to bid the option when the vault is auctioned and pay premium (depositor's reward) in stablecoins (such as $usdc) after an auction ends if the buyer decides to execute the contract as the call option expires, the stablecoins deposited by the seller will be transferred to the buyer, that is, cash settled in stablecoins example you pay 1 usdc to buy 1 sui call option duration 7 days current market price 1 sui = 10 usdc strike price 1 sui = 12 usdc contract size 1 sui call option premium the seller gets 1 usdc from you before vault settlement case 1 when settle price > strike price, you may gain if the price of sui rises strongly to 15 usdc when the call expires, you have the right to execute the call at this time, you get 3 usdc from the seller the amount is equal to the difference between the market price and the strike price at expiry market price at expiry 1 sui = 15 usdc strike price 1 sui = 12 usdc > executed by you vault settlement you get 15 12 = 3 usdc from the seller net pnl in usdc you get 2 usdc ( 3 usdc 1 usdc = 2 usdc ) the seller loses 2 usdc if the price of sui rises slightly to 13 usdc when the call expires, you have the right to execute the call at this time, you get 1 usdc from the seller the amount is equal to the difference between the market price and the strike price at expiry market price at expiry 1 sui = 13 usdc strike price 1 sui = 12 usdc > executed by you vault settlement you get 13 12 = 1 usdc from the seller net pnl in sui you are breakeven ( 1 usdc 1 usdc = 0 usdc ) the seller is breakeven too case 2 when settle price ≦ strike price, you lose if the price of sui stays below 12 usdc when the call expires, you will not execute the call market price at expiry 1 sui ≦ 12 usdc strike price 1 sui = 12 usdc > not executed by you vault settlement the seller doesn’t need to transfer sui to you net pnl in sui you lose 1 usdc the seller gets 1 usdc 👉🏻 start earning bid 🔎 vault analysis check historial performance 📚 read more bidder guide https //docs typus finance/bidder guide put buyer a https //docs typus finance/defi options vaults#xds35 vault bidder is a put buyer the buyer needs to bid the option when the vault is auctioned and pay premium (depositor's reward) either in underlying tokens (such as $sui) or stablecoins (such as $usdc) after an auction ends if the buyer decides to execute the contract as the put option expires, the stablecoins deposited by the seller will be transferred to the buyer, that is, cash settled in stablecoins example you pay 1 usdc to buy 1 sui put option duration 7 days current market price 1 sui = 10 usdc strike price 1 sui = 8 usdc contract size 1 sui put option premium the seller gets 1 usdc from you before vault settlement case 1 when settle price < strike price, you may gain if the price of sui decreases strongly to 5 usdc when the put expires, you have the right to execute the put at this time, you get 3 usdc from the seller the amount is equal to the difference between the market price and the strike price at expiry market price at expiry 1 sui = 5 usdc strike price 1 sui = 8 usdc > executed by you vault settlement you get ( 8 5 ) = 3 usdc from the seller net pnl in usdc you get 2 usdc ( $3 $1 = $2 ) the seller loses 2 usdc if the price of sui decreases slightly to 7 usdc when the put expires, you have the right to execute the put at this time, you get 1 usdc from the seller the amount is equal to the difference between the market price and the strike price at expiry market price at expiry 1 sui = 7 usdc strike price 1 sui = 8 usdc > executed by you vault settlement you get ( 8 7 ) = 1 usdc from the seller net pnl in usdc you are breakeven ( $1 $1 = $0 ) the buyer is breakeven too case 2 when settle price ≧ strike price, you lose if the price of sui stays above 8 usdc when the put expires, you will not execute the put market price at expiry 1 sui ≧ 8 usdc strike price 1 sui = 8 usdc > not executed by you vault settlement the seller doesn’t need to transfer usdc to you net pnl in usdc you loses 1 usdc the seller gets 1 usdc please note that stablecoins could be replaced by native tokens such as $sui as well 👉🏻 start earning bid 🔎 vault analysis check historial performance 📚 read more bidder guide https //docs typus finance/bidder guide call spread buyer a covered spread https //docs typus finance/defi options vaults#k3ka vault bidder is a call spread buyer the buyer needs to bid the option when the vault is auctioned and pay premium (depositor's reward) either in underlying tokens (such as $sui) or stablecoins (such as $usdc) after an auction ends if call buyers decide to execute the contract as the call expires, the underlying asset deposited by the seller will be transferred to the buyer, that is, cash settled in tokens example you pay 0 07 sui to buy 1 sui call spread option duration 7 days current market price 1 sui = 10 usdc strike price a 1 sui = 13 usdc strike price b 1 sui = 15 usdc contract size 1 sui call spread option premium the seller gets 0 07 sui from you before vault settlement case 1 when settle price ≧ strike price b, you gain if the price of sui rises strongly to 20 usdc when the call spread expires, you have the right to execute the call at strike price a, and the seller has the right to execute the call at strike price b at this time, you get 0 10 sui token from the seller the amount is equal to the difference between the market price and the strike price at expiry market price at expiry 1 sui = 20 usdc strike price a 1 sui = 13 usdc > executed by you strike price b 1 sui = 15 usdc > executed by the seller vault settlement you get \[ (20 13) / 20 ] \[ (20 15) / 20 ] = 0 35 0 25 = 0 10 sui from the seller net pnl in sui you get 0 03 sui ( 0 10 sui 0 07 sui = 0 03 sui ) the seller loses 0 03 sui case 2 when strike price a < settle price < strike price b, you may lose if the price of sui rises slightly to 14 usdc when the call spread expires, you have the right to execute the call at strike price a at this time, the buyer gets 0 07 sui token from you the amount is equal to the difference between the market price and the strike price at expiry market price at expiry 1 sui = 14 usdc strike price a 1 sui = 13 usdc > executed by yoy strike price b 1 sui = 15 usdc > not executed by the seller vault settlement you get \[ (14 13) / 14 ] = 0 07 sui from the seller net pnl in sui you are breakeven ( 0 07 sui 0 07 sui = 0 sui ) the seller is breakeven too case 3 when settle price ≦ strike price a, you lose if the price of sui stays below 13 usdc when the call spread expires, you will not execute the call at strike price a market price at expiry 1 sui ≦ 13 usdc strike price a 1 sui = 13 usdc > not executed by you strike price b 1 sui = 15 usdc > not executed by the seller vault settlement the seller doesn’t need to transfer sui to you net pnl in sui you lose 0 07 sui the seller gets 0 07 sui 👉🏻 start earning bid 🔎 vault analysis check historial performance 📚 read more bidder guide https //docs typus finance/bidder guide