ποΈLeverage
Leverage in Operps works differently than the traditional trading platforms. Instead of allowing users to select the leverage themselves, it is automatically determined based on the supply of Long and Short Operps tokens in their respective pools.
Leverage = (Supply of Short Operps Tokens)/(Supply of Long Operps Tokens)
The higher the premium, the more players want to hold the short Operps tokens to receive that premium every cycle, which increases the leverage.

How does leverage affect Put Operps payoff
For every percentage point drop in the market, Short Put Operps holders lose 1% each but Long Put Operps holders earn 100% on their investment.

How does leverage affect premium
Long Operps holders pay a pre-defined premium every settlement, which gets divided among Short Operps holders. So if Long Operps holders pay 50% as premium, Short Operps holders earn 0.5% in premium because there are 100 times as many Short Operps holders to divide that 50% premium among them.

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