# PUT

### Set Up

| Variable Name             | Value   |
| ------------------------- | ------- |
| Long OPerps Token Supply  | 100     |
| Short OPerps Token Supply | 1000    |
| Premium (per cycle)       | 3%      |
| Cycle Duration            | 2 hours |

### Scenario 1: Market falls 1% during the cycle

Long OPerps pool pays 3 tokens (3% of 100) as Premium and Short OPerps pool pays 10 tokens (1% of 1000) as payoff for market movement.

<figure><img src="https://2063155529-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F0E3bPQzFVU4NUp6wFLua%2Fuploads%2FUswOkUY6tpRnN3PGMS3v%2Fput01.jpg?alt=media&#x26;token=5c424690-f6cd-430f-857d-2fd832257c09" alt=""><figcaption><p>During market fall LO tokens earn from SO holders. LO holders pay the premium every cycle, irrespective of market movement. </p></figcaption></figure>

### Scenario 2: Market falls 1.5% during the cycle

Long OPerps pool pays 3 tokens (3% of 100) as Premium and Short OPerps pool pays 15 tokens (1.5% of 1000) as payoff for market movement.

<figure><img src="https://2063155529-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F0E3bPQzFVU4NUp6wFLua%2Fuploads%2FhjyouiQt6TfDxPvpTsZR%2Fput02.jpg?alt=media&#x26;token=75cfba7b-2c16-4a29-be42-7c769b23d97a" alt=""><figcaption></figcaption></figure>

### Scenario 3: Market remains neutral or rises

Long OPerps pool pays 3 tokens (3% of 100) as Premium and Short OPerps pool pay nothing.

<figure><img src="https://2063155529-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F0E3bPQzFVU4NUp6wFLua%2Fuploads%2FL4IJgpEgVZEnD8ZXj6KI%2Fput03.jpg?alt=media&#x26;token=d8278993-20bf-416f-bc4e-8a25ae4502dd" alt=""><figcaption></figcaption></figure>

## Special Cases

### Scenario 4: Market falls more than 2.5% in 30 minutes.

As explained in [Settlement](https://ethosx.gitbook.io/operps/settlement) section, the payoff will be capped at 2.5%

Long OPerps pool pays 3 tokens (3% of 100) as Premium and Short OPerps pool pays 25 tokens (2.5% of 1000) as payoff for market movement.

<figure><img src="https://2063155529-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F0E3bPQzFVU4NUp6wFLua%2Fuploads%2FiBho6jWz6mVMCX9GQm0H%2Fput04.jpg?alt=media&#x26;token=41f590da-9e6f-41fe-80b9-0bce55086f35" alt=""><figcaption></figcaption></figure>
