Using Contrast

Start to finish!

Process Flow

Contrast utilizes a straight-forward process for facilitating trading activity. A simple summary is first covered:

• Deposit period

• Expiration

• Payouts

Timetable

The deposit period is variable, based around the time until expiration. Because the protocol aims to offer various strikes at various expirations, it is necessary to offer this flexibility. A table is provided based on V1 expirations (but may be subject to change):

Time to Expiry (from open)	Deposit Period (from open)	Time to Expiry (from close)
12 hours	6 hours	6 hours
24 hours	12 hours	12 hours
7 days	1 day	6 days

To provide clarity on the table above, an example is given for three potential strikes and expiries:

Example I

ETH $1,000 Call Strike (6H deposit period, 6H expiry)

• The vault describes digital option calls with $ETH as the underlying and an expiration in 12 hours from the open of the vault

• From the moment the vault opens (the open), users can deposit stablecoins on the "true" (ETH expires above $1,000 according to oracle at expiry) side and/or "false" (ETH expires at or below $1,000 according to oracle at expiry) for the duration of the deposit period

• The deposit period lasts for six hours from the open of the vault; once six hours has passed, users on either side are no longer able to deposit/withdraw assets deployed

• The expiration, i.e. when payout is determined, occurs twelve hours after the open from the vault, or six hours after the close of the vault deposit/withdrawal period

Example II

ETH $1,000 Put Strike (12H deposit period, 12H expiry)

• The vault describes digital option puts with $ETH as the underlying and an expiration in twenty-four hours from the open of the vault

• From the moment the vault opens (the open), users can deposit stablecoins on the "true" (ETH expires at or below $1,000 according to oracle at expiry) side and/or "false" (ETH expires above $1,000 according to oracle at expiry) for the duration of the deposit period

• The deposit period lasts for twelve hours from the open of the vault; once twelve hours has passed, users on either side are no longer able to deposit/withdraw assets deployed

• The expiration, i.e. when payout is determined, occurs twenty-four hours after the open from the vault, or twelve hours after the close of the vault deposit/withdrawal period

Example III

ETH $3,000 Call Strike (24H deposit period, 144H expiry)

• The vault describes digital option call with $ETH as the underlying and an expiration in 7 days from the open of the vault

• From the moment the vault opens (the open), users can deposit stablecoins on the "true" (ETH expires above $3,000 according to oracle at expiry) side and/or "false" (ETH expires at or below $3,000 according to oracle at expiry) for the duration of the deposit period

• The deposit period lasts for one day from the open of the vault; once one day has passed, users on either side are no longer able to deposit/withdraw assets deployed

• The expiration, i.e. when payout is determined, occurs seven days after the open from the vault, or six days after the close of the vault deposit/withdrawal period