How to Create an Option
Last updated
Last updated
Antimatter is a permission-less protocol. Anyone can create an option through Antimatter option creation portal. Antimatter perpetual option model only requires four parameters to construct an option. Because the option model is non oracle, it is easy to create an option with no external system interaction.
When you setup an option, there is no need to provide liquidity because you are only setting up the framework.
There are four major parameters for Antimatter perpetual options:
1) Target Asset: which is the asset you want to create option for 2) Stable Coin: which acts as the value peg to the target asset. In theory it works with any stable coins. 3) Price Ceiling: which is the highest price that an option will remain effective and is also the strike price of the put option. 4) Price Floor: Which is the lowest price that an option will remain effective and is also the strike price of the call option.
Before you start, you should go to the âOption Calculatorâ page in the navigation bar. The calculator assist you in deciding the Price Floor, Price Ceiling according to your anticipated Bull Issuance, Bear Issuance and most importantly your anticipated Underlying Currency Price. Then at the bottom of the Option Calculator you will see how much your Bull or Bear token will each be worth at the specific conditions you have entered. We suggest that you open another browser window for this calculator page so you donât have to toggle back and forth when creating your Option for reference.*For more details please see Profit/Loss Calculation Tool section below.*
Go to Antimatter application
Find option creation in the navigator section and click.
3. You will see four parameters to enter. Make sure you understand the nature of each parameter before entering and creating.
Due to model constrain and risk management, the price ceiling cannot be 4x larger than price floor.
4. Double check parameters in the confirmation page
5. Click on "Confirm" and interact with your wallet to initiate option creation transactions.
6. Once successfully created, your option will be shown in the option trading page.
7. Do not forget to mint initial call and put tokens to boost strap your option liquidity.
