# LPO {% embed url="" %} Long PUT OPerps a.k.a. LPO tokens represent buying of PUT options and make money in falling markets. LPO holders pay fix premium in a [settlement cycle](/operps/settlement.md) in return for gaining leveraged exposure to fall in the underlying price. In following example, LPO holders make 50% profit for just 1% fall in underlying price. Higher the [leverage](/operps/leverage.md), more is the profit for same premium paid. > Token holdings are automatically rolled over to the next cycle unless sold | Variable Name | Value | | ----------------------------- | ----------------------------------- | | Long PUT OPerps Token Supply | 100 | | Short PUT OPerps Token Supply | 10000 | | Leverage | 100 | | Premium (per cycle) | 50%\* | | Cycle Duration | 5 minutes\* | | Underlying Price Change | -1% | 50 (50% of LPO supply i.e. 100) Tokens are transferred from LPO to SPO pool as Premium.\ 100 (1% of SPO supply 1.e. 10,000) Tokens are transferred from SPO to LPO pool for 1% market fall.

Because of high leverage, LPO holders can make huge profits even with small market moves, despite paying the premium.

{% hint style="info" %} Premium and cycle duration values used in this example are meant for our Arbitrum products. On Binance chain, these values are different. {% endhint %} --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://ethosx.gitbook.io/operps/types-of-operps/lpo.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.