SCO

Short CALL OPerps a.k.a. SCO tokens represent selling of CALL options and are profitable in neutral or falling markets. SCO holders receive premium from LCO holders in every settlement cycle in return for enabling leveraged exposure to price rise for LCO holders. In following example, SCO holders make 0.5% profit in just 5 minutes*.

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	-ve

50 (50% of LCO supply i.e. 100) Tokens are transferred from LCO to SCO pool as Premium. No Tokens are transferred from SCO to LCO pool because market didn't rise duting the cycle.

SCO holders gain 0.5% in just 5 minutes*

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