# FAQs

1. *What are OPerps tokens, i.e. LCO/SPO etc?* *How much does it cost?* \
   OPerps are ERC-20 tokens, representing Perpetual Option position. Each OPerp token is equivalent to $1 or 1 USDC. For details, please refer to [Types of OPerps](/operps/types-of-operps.md).
2. *What is a Cycle in OPerps?* \
   A cycle in OPerps lasts 5\* min, running 12 times every hour. This allows you to enter or exit positions at the beginning or end of a cycle. Settlement happens at the end of every cycle. \
   \*On Binance, cycle duration is 2 hours.
3. *What is the Premium in OPerps? Is it fixed?* \
   Long OPerps holders pay a fixed premium of 50% to Short OPerps holders every cycle. In return, they get leveraged exposure to desired price movement in the underlying. Long CALL OPerps provide leveraged exposure to rising markets and Short CALL OPerps provide leveraged exposure to falling markets.
4. *How much do Short OPerps holders pay to Long OPerps holders for market movement?* \
   Short OPerps holders pay an amount equal to the percentage change in the underlying asset (rise for CALL and fall for PUT). For example, if there is a 2% decline in the markets, 2% of the Short PUT OPerps tokens are transferred to the Long PUT OPerps pool, which are then distributed proportionally among Long PUT OPerps holders. 
5. *What is Last Hour's Return?* \
   This is the average return Long/Short OPerps holders earned in the last 12 cycles of OPerps trading respectively. 
6. What is the Break-even Price? \
   Long OPerps: Underlying price where premium paid = payoff received. \
   Short OPerps: Underlying price where premium received = payoff paid. 
7. *Not sure how much to buy?* \
   We provide a virtual PnL simulator for your convenience. You can compute your expected profit or loss based on the investment value and expected change in the underlying price, should you wish to participate in the upcoming cycle.<br>


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