Scenario 1

Collateral: Underlying NFT (DeGod) & Payout: Underlying NFT (DeGod)

A seller has agreed upon all the parameters of the Call option listed by the buyer.

• Option type: Call

• Underlying asset: DeGod NFT

• Strike price: 375 SOL

• Expiration: 30 days

• Premium: 37.5 SOL

• Collateral: Underlying NFT (DeGod NFT)

• Payoff: Underlying NFT (DeGod NFT)

- The buyer pays the seller a 37.5 SOL premium.

- The seller is putting a DeGod NFT as collateral.

- The buyer is receiving a new NFT that materializes the call option contract and which allows him to buy a DeGod NFT for 375 SOL within the next 30 days (NFT is burnt once the option is activated or after the expiration date is reached).

Outcome 1

After 25 days, DeGods has finally revealed its roadmap v2.0 and price has increased to 600 SOL.

The buyer, who has enough liquidity at this time, decides to activate his option and to buy the collateralized DeGod for 375 SOL to floor it on secondary markets.

• Buyer has made 600 (DeGod sell price) - 375 (DeGod buy/strike price) - 37.5 (premium) = 187.5 SOL

• Seller has made 375 (DeGod sell/strike price) + 37.5 (premium) = 412.5 SOL

Outcome 2

After 25 days, DeGods has finally revealed its roadmap v2.0 and price has increased to 600 SOL.

The buyer, who doesn’t have enough liquidity at this time, decides to sell his option on the secondary markets for 100 SOL.

The new call option owner decides to activate his option and buys the collateralized DeGod for 375 SOL to floor it on secondary markets.

• Initial option buyer has made 100 (option secondary sell price) - 37.5 (premium) = 62.5 SOL

• New option owner has made 600 (DeGod sell price) - 375 (DeGod buy/strike price) - 100 (option secondary buy price) = 125 SOL

• Seller has made 375 (DeGod sell/strike price) + 37.5 (premium) = 412.5 SOL

Outcome 3

After 30 days, DeGods is still DeLaying its roadmap 2.0 reveal and floor price has dropped to 350 SOL.

Because the buyer doesn’t want to activate his right to buy the collateralized DeGod for 375 SOL (strike price is higher than the floor price of the collection), the option is expiring (the NFT materializing the option is then burnt and the collateralized DeGod is returned to the option seller).

• Buyer has lost 37.5 SOL (premium)

• Seller has made 37.5 SOL (premium)