Lexicon

Definitions have been adapted to Anture's ecosystem (NFT).

• A call is an option contract giving the owner the right, but not the obligation, to buy an underlying asset (NFT) at a specified price within a specified time period.

• A put is an option contract giving the owner the right, but not the obligation, to sell an underlying asset (NFT) at a specified price within a specified time period.

• The specified price is known as the strike price.

• The specified time during which the option contract can be executed is its expiration.

• You pay a fee to purchase an option, called the premium; which is the maximum the buyer can lose on a call or put option.

• The term collateral refers to an asset (locked NFT or cash (SOL)) that the buyer and the seller agree on to secure an option.

• The term underlying asset refers to the NFT that both the buyer and the seller bet on the price fluctuation when subscribing an option.

• The term payoff refers to the payment method expected from the buyer if he wants to activate his option:

  • Underlying NFT: the option seller must provide the underlying NFT to the option buyer.

  • Cash: the option seller must pay the option buyer in SOL.

• The term claim condition refers to the agreed condition to claim the payoff for put options:

  • Selling the Underlying NFT: the option buyer must sell the NFT to the option seller for the agreed strike price

  • None: the option buyer can claim the payoff without having to sell the underlying asset (NFT) to the option seller. He will receive part of (or all) the payoff based on the difference between the "strike price" and the "floor price of the underlying asset (NFT)"