SETTLEMENT OPTION

p2p settlement option

1. Seller emits  option as smart contract:

BaseActive1,

BaseActive2 ,

OptionSumBA1sell - amount of options in BA1  to sell 

OptionSumBA2buy - amount of BA2  to exchange for BA1 ,

ExpireDate  - date and hour till  expiring of option

SecurityDepositPercent  for Base Actiive 1 - SDBA1

SecurityDepositPercent  for Base Actiive 1 - SDBA2

 Seller and Buyer can  buy  sum in 0XY tokens (1 0XY = 1 USD), equivalent OptionSumBA1sell.

1.1 Seller pays  in BA1sell*SecurityDepositPercent =  security deposit  to contract (as percent approx equal to sum of  volatilities of Base Actives) in 0XY tokens

2.1  Buyer buy ERC20 tokens of emitting option  with depositing of  0XY tokens for same sum in BA2 (sum * SDBA2  (percent equal to sum of volatilities of Base Actives).

2.2 Buyer can trade and resale options tokens as usual ERC20 tokens

3. Before the moment  the day of option expires, Seller should put residual part  of OptionsSum to the contract OptionSumBA1sell in 0XY tokens

4. After that, buyer  can pay residue of sum  OptionSumBA2buy in 0xy  tokens   to contract and get proportional sum of OptionSumBA1sell in 0XY tokens. 

5. If all right, option fulfilled, and Seller paid all sum of option to contract, after option expire,

Seller can withdraw unsold tokens and   return un-exchanged part option.

Force majeure 

6. IF Seller escapes from paying residual sum of BA1sell, he/she lose SecurityDeposite and

6.1. Buyers have to send their option token to contract and

6.2  returns their Buyer's payments of SD + and get proportional part of  Seller's Security Deposite as penalty for lose profit.

Operator’s fee

7.1 Operator can get royalty (1%)

7.2 after options mature finished, operator get rest of OptionSumBA1sell  from for locked unfunded (brocken) deposite of BA2buy