💰Settlement

Settlement happens in OPerps every 5 minutes (except on Binance with 2 hour cycle) which consists of token transfers between Long OPerps pool and Short OPerps pool, depending upon the % price change in the underlying asset.

All Buy/ Sell orders placed during the cycle also get executed during the settlement.

Premium

Long OPerps holders pay premium to Short OPerps holders in every settlement independent of price change in the underlying asset.

Payoff

Short OPerps holders pay Long OPerps holders depending upon the underlying price movement.

CALL Operps

Short Call OPerps holders pay Long Call OPerps holders only if the price of the underlying asset has increased during the cycle.

SO holders pays LO pool in proportion to the rise in market.

PUT Operps

Short Put OPerps holders pay Long Put OPerps holders only if the price of the underlying asset has decreased during the cycle.

SO holders pays LO pool in proportion to the fall in market.

Payoff is proportional to the change in underlying price. For x% change in underlying price (rise for Calls and fall for Puts) x% tokens are transferred from respective Short Pool to the Long Pool.

Call Payoff = Min(% Price rise, 2.5%)
Put Payoff = Min(% Price fall, 2.5%)

Max Loss for Short Operps holders in a cycle is limited to 2.5%.

Even when Short OPerps holders pay Long OPerps holders for the market movement, they still receive the premium from Long OPerps holders.