Everlasting Options

Is the Funding Fee charged only once at the opening of a position?

No, it’s not just charged up-front (this is where Everlasting Options differ from classic ones). It’s accrued per second but is settled every time you take an action (let's say you add some position). The same also applies to the Funding Fee for perpetual futures.

How can I add or remove margin?

Refer to our Deri Lite article

What is Funding Fee?

Refer to our How it works section - Funding Fee

What is Funding Period?

Funding period is the time period for which the funding fee (MARK-PAYOFF) is paid. For example, if funding period is 1 week, it means every second a long contract pays a funding fee: (MARK-PAYOFF)/(7*24*60*60)

DPMM of Everlasting Options

Refer to our How it works section - DPMM (Proactive Market Making)

Can the Option Price appear negative?

Theoretically, option price should never be negative. However, there is no mechanism in our DPMM algorithm to stop this scenario. So hypothetically, if there is a huge selling order, it might cause DPMM to give a negative price, under some special circumstances. If that happens, you can buy in to take the arbitrage. That is, you get paid to own an option

How is Option Price calculated?

Please refer to our whitepaper, or this article specifically for everlasting option pricing: https://deri-protocol.medium.com/pricing-continuously-funded-everlasting-options-acf609a06937

How are the Initial Margin Ratio, Maintenance Margin Ratio, Transaction Fee calculated?

It’s explained on the trading page, once you select the specific trading symbol. if you move your mouse over the marked words, within the Contract Info panel, you will see a hove explaining how they're calculated/charged.

What is Option Liquidation based on?

For Everlasting Option, DPMM takes two inputs from the oracle: the underlying price and volatility. It calculates then the theoretical price i for the option, whereof the liquidation is based on. (refer to the EO whitepaper for the math of the pricing).

Where can I claim my XVS reward?

XVS mining rewards can be claimed at the trading User interface. You will find a small downward pointing arrow below the "Dynamic Effective Balance", which when clicked, a Collect button will appear. Hit the "Collect" Button to claim your XVS reward

Is trading on Deri Protocol risk-free?

Trading Margins & Contracts on Deri Protocol includes but is not limited to - a high level of risk, and may not be suitable for all kinds of investors. The enormous degree of leverage can work in favor of you as well as against you. Before making the decision to invest using Deri Protocol, you should carefully consider your level of experience, investment objectives and risk appetite. There is a possibility that you may lose part of your investment or all of your initial investment. You should be aware of all the risks associated with trading contracts and margin. Deri Protocol will not be responsible for any losses, damages or claims arising from events falling within the scope of the events mentioned above. We urgently advise you not to invest money that you cannot afford to lose and we also recommend you to seek advice from an independent financial adviser, If you have any questions or doubts!