Synthesis

Here are the multiple scenarios and outcomes that a call option contract is allowing on Anture.

Collateral: Underlying NFT

Strike price is lower than the FP of the underlying asset

Payoff: Underlying NFT

Upon activation of the call option by the buyer, the seller will sell the underlying NFT to the buyer for the agreed strike price to the option buyer.

Payoff: Cash

Upon activation of the call option by the buyer,

• The seller owes the buyer: "Current floor price of the underlying asset (NFT) - Strike price" (= "X")

If the seller is not paying the buyer within 48 hours, the underlying NFT will be liquidated (sold by Anture using the highest AMM floor price).

• The buyer will then be paid: "Current floor price of the underlying asset (NFT)* - Strike price" (="X")

• and the seller will receive: "Current floor price of the underlying asset (NFT)* - X"

*At the moment of the liquidation.

Strike price is higher than the FP of the underlying asset

The NFT materializing the call option contract will be burnt after the expiration date is reached. The collateralized NFT will be sent back to the option seller who owes nothing to the buyer.

The buyer only lost the premium he paid to the seller.

Collateral: Cash (SOL)

Strike price is lower than the FP of the underlying asset

Payoff: Underlying NFT

Underlying NFT is not accepted as a payoff if collateral is cash to avoid any default (waiting for the auto liquidation and margin call features which will be release with Anture v2).

Payoff: Cash

Upon activation of the option by the buyer,

• The sellers owes the buyer: "Current floor price of the underlying asset (NFT) - Strike price" (max = agreed payoff/collateral)

Strike price is higher than the FP of the underlying asset

The NFT materializing the Call option contract will be burnt after the expiration date is reached. The collateralized NFT will be sent back to the option seller who owes nothing to the buyer.

The buyer only lost the premium he paid to the seller.