> For the complete documentation index, see [llms.txt](https://ethosx.gitbook.io/operps/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ethosx.gitbook.io/operps/types-of-operps/lpo.md).

# LPO

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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, <mark style="color:yellow;">LPO holders make 50% profit for just 1% fall in underlying price</mark>. 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       | <mark style="color:red;">-1%</mark> |

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.

<figure><img src="/files/8oxs4zgIUzXaS7EMj9PI" alt=""><figcaption><p>Because of high leverage, LPO holders can make huge profits even with small market moves, despite paying the premium.</p></figcaption></figure>

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Premium and cycle duration values used in this example are meant for our Arbitrum products. On Binance chain, these values are different.
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