Antimatter Finance
HomeApplicationGithub
  • Disclaimer
    • Notice and Disclaimer
  • šŸ”—Antimatter B2 Sidechain
    • Introduction - Scaling and Transaction Fees
    • Token Economy of B2
      • Configurations
    • Technical Background
    • Chain Architecture
      • System Contracts
      • On-Chain Governance
      • On-Chain Staking
      • Slashing
      • Blocks & Epochs
      • Reward Distribution
      • Modifications
    • DApps in Antimatter Ecosystem
    • Links
  • Introduction
    • Antimatter Overview
    • Antimatter Labs: Vision & Roadmap 2022
    • Community & Resources
    • Marketing Material
    • Educational Infographics
    • Challenges & Solutions
  • šŸ—ļøAntimatter Structured Product
    • Dual Investment
      • Rules
      • On-chain Configurations
      • Risk Control
      • Terminology & Calculations
    • Recurring Strategy
    • DeFi Option Vault - DOV
      • Mechanism
    • Weekly Sharkfin
      • Mechanism
  • šŸ“ˆAntimatter Perpetual Options
    • Introduction
      • Options Basics
      • Antimatter Features
      • Comparative analysis
      • Technical Whitepaper
      • Structure
      • Option Token Symbol System
    • Mechanism
      • Price Equilibrium and Arbitrage
      • Generation and Redemption
      • Underlying Asset
      • Leverage Ratio
      • Arbitrage Example
      • Slippage & Fees (full disclosure)
      • Oracles
      • Permission-less protocol
    • Mathematics
      • Modelling Kit
      • Mathematical Model
  • šŸ› ļøAntimatter Dao
    • Introduction
    • Governance Policies
  • šŸ›’Antimatter Non-fungible Finance
    • Introduction
    • How to Create an Index
  • ā„¹ļøUser guides
    • Connect to a Wallet
      • Switch Wallet Network
    • Bull & Bear Tokens
      • How to Create an Option
      • Tools
    • Account System
    • Getting Started - Antimatter Structured
      • Dual Investment Subscription
      • Recurring Strategy Subscription
      • Defi Option Vault Subscription
      • Defi Option Vault Withdrawal
      • Decision Guide for Dual Investment
  • Developers
    • Contracts
    • GitHub
    • Auditing report
  • Token
    • Token Utility
    • Token Information
    • Token Bridge
Powered by GitBook
On this page

Was this helpful?

  1. Antimatter Perpetual Options
  2. Mechanism

Leverage Ratio

PreviousUnderlying AssetNextArbitrage Example

Last updated 3 years ago

Was this helpful?

In general, leverage is described under two frames.

The first one is inherent, which based exclusively on CCCand FFF. The current version(R3) is defined under the condition that C≤2FC\leq 2FC≤2F, resulting in that the leverage is moderate and the price of both tokens will remain in the the interval [0,Cāˆ’F][0,C-F][0,Cāˆ’F]. The rate of change of token prices will be medium as price of ETH changes. Future versions will include 4F≄C≄2F4F \geq C \geq 2F4F≄C≄2F(R4) and C≄4FC\geq 4FC≄4F(R5). In these cases, the price of call token will exceed Cāˆ’FC-FCāˆ’F, meaning that when price spikes, one can make more money if he holds a call token. If the price of ETH dips, the call token price will drop in the same fashion. In the extreme case, there might be negative prices, which can be seen either as an anomaly or a perfect change to generate a token.

The dynamic leverage is related to the extend that the price differs from the strike price. If cccis close to FFF, the call token has very high leverage. If cccis close to CCC, the put token has very high leverage. There are two expressions(for call and put respectively) eā‹…Exzx,eā‹…Eyzye\cdot\frac{E_x}{z_x},e\cdot\frac{E_y}{z_y}eā‹…zx​Ex​​,eā‹…zy​Ey​​ measuring how much the option value changes corresponding to underlying value changes.

Putting two frames together, supposing that F=1000,C=5000,c=1100F=1000,C=5000,c=1100F=1000,C=5000,c=1100, call token is highly leveraged.

šŸ“ˆ