Long CALL OPerps a.k.a. LCO tokens represent buying of CALL options and make money in rising markets. LCO holders pay fix premium in a settlement cycle in return for gaining leveraged exposure to rise in the underlying price. In following example, LCO holders make 50% profit for just 1% rise in underlying price. Higher the leverage, more is the profit for same premium paid.
Token holdings are automatically rolled over to the next cycle unless sold
Variable Name
Value
Long CALL OPerps Token Supply
100
Short CALL OPerps Token Supply
10000
Leverage
100
Premium (per cycle)
50%*
Cycle Duration
5 minutes*
Underlying Price Change
1%
50 (50% of LCO supply i.e. 100) Tokens are transferred from LCO to SCO pool as Premium.
100 (1% of SCO supply 1.e. 10,000) Tokens are transferred from SCO to LCO pool for 1% market rise.
Because of high leverage, LCO holders can make huge profits even with small market moves, despite paying the premium.
Premium and cycle duration values used in this example are meant for our Arbitrum products. On Binance chain, these values are different.
