1.2 Meta Defender Call Options – A Unique Approach

Meta Defender’s call options provide a distinct take on the classic financial instrument. Here's an overview of how call options work on our platform:

Catering Options Trading for a Range of Crypto Assets

At Meta Defender, we extend the facility of option trading to encompass a diverse spectrum of crypto assets, accommodating the varied interests and strategies of traders across the digital asset market.

In our ecosystem, an option buyer secures a position by paying a premium, looking to leverage the potential upside of a crypto asset. The buyer provides the agreed premium in exchange for the right to claim a pre-set compensation if the option meets the strike criteria. They are essentially betting on the asset's price appreciation without the need to hold the actual asset.

On the other side, the option underwriter (seller) offers this right to the buyer, receiving the premium as income. In return, the underwriter accepts the obligation to pay the pre-agreed compensation if the strike event occurs. The underwriter's perspective is typically one that expects the asset to not meet the strike criteria, allowing them to retain the premium with no further obligation.

This symbiotic relationship between the buyer and the underwriter is the core of our options market, providing a dynamic platform for risk management and speculative opportunities within the crypto space.

Purchase Period and Strike Criteria

Once the purchase period for a call option ends, a 20-day timeframe is observed. For the option to be considered as having struck, the 7-day moving average price of the underlying asset must exceed the strike price during this window. This method focuses on market trends rather than immediate price spikes, aiming to provide a more stable and predictable option trading environment.

Settlement without Asset Transfer

Unlike traditional options, Meta Defender call options do not involve the actual exchange of the underlying asset. Instead, if an option strikes, the seller is obligated to pay a pre-agreed compensation to the option buyer, which is determined at the outset of the contract. This payout is conducted in aSEED, simplifying the settlement process and avoiding the complexities of asset transfer.

Advantages of Meta Defender Call Options:

• Market Adaptation: The unique strike condition is designed to adapt to crypto market volatility.

• Simplified Settlement: Settlement in aSEED streamlines the process and reduces the need for asset liquidity.

• Pre-defined Risk: Buyers and sellers understand their maximum potential loss or obligation from the beginning, promoting transparency and informed decision-making.

Meta Defender call options are tailored for the DeFi space, leveraging blockchain technology to offer a secure, transparent, and user-oriented experience. Our innovative strike criteria and settlement process reflect our commitment to simplifying options trading while maintaining fidelity to its core principles.