Welcome to FinNexus DeFi Options Trading Competition. May the best trader win!

FinNexus is organizing a DeFi Options Competition from April 15 to April 30. This will be a chance for talented traders to win tens of thousand FNX in prizes and show off their abilities!

The results will be calculated by using on-chain addresses and compared off-chain.

Total rewards: 60,000 FNX

Where:

options.finnexus.io

Competition Period:

From 15th April 2021 at UTC 12:00 to 30th April 2021 at UTC 12:00

Rules:

• Through the portal above, users can choose to participate in the competition through Ethereum, BSC or Wanchain. The performance will be ranked on the three chains together.
• There is no need to sign-up. All addresses are automatically qualified, as long as they meet the following requirements.
• Traders must use new empty addresses to participate, while initial funds should be deposited before the start of the competition. Transfers and interactions with contracts other than the FinNexus option contracts will be deemed invalid.
• Addresses failing to make any options transactions will also be seen as invalid.
• The minimum requirement for an initial deposit is $300. Participants may choose one cryptoasset from USDC/USDT/BUSD/FNX/WAN/FRAX, its value recorded using the current price when the competition starts. Addresses with multiple currencies will be deemed invalid.
• The upper limit is not capped.
• Please note that there will be gas costs associated with transactions.
• Participants may trade options on any underlying asset (BTC, ETH, link, MKR or SNX), with any strike price or expirations at their own discretion. There is no limit to the amount or times of transactions.
• The ranking will follow the rate of return in the individual address at the closing time of the competition. Options not exercised will not be taken into calculation.
• Results will be disclosed 3 days after the closing time and rewards will be transferred to the relative addresses.
• As gas fees on Ethereum will likely be higher than on other chains, an extra 10% reward will be granted to the 6th-40th winners on Ethereum.

Notes:

• The liquidity available for trading in different cryptocurrencies varies. Please pay attention when choosing the type and size of your positions. Low liquidity may cause higher prices due to slippage and negatively affect your strategy in trading.
• There are unavoidable risks associated with options trading. Please choose the size of the principal according to your risk tolerance. Participants will bear sole responsibility for their profits and losses.
• Be aware that the ranking will be done according to the rate of return, not the size of the principal.
• FinNexus options are American type and can be exercised anytime before expiry.
• FinNexus options can only be exercised. They cannot be sold.

An Example

Suppose there are 4 players in the competition — in our example, A, B, C, D.

P&L in Options

• P&L of Call options = spot price of the underlying asset — strike price — option premiums (when spot price > strike price)
• Loss of Call options = option premiums (when spot price ≤ strike price)
• P&L of Put options = strike price — spot price of underlying assets — option premiums (when spot price < strike price)
• Loss of Put options = option premiums (when spot price ≥ strike price)

Below, we will show you some examples to better understand how FinNexus options work.

Example 1

Alice is participating in the competition with 500USDC and she believes that the BTC is going for a bull run in the short term. Therefore, she buys 0.1 units of BTC Calls, with a strike price of $60,000 and an expiration of 3 days. The cost/premium is about $62 as follows.

1. If the BTC price rises to $63,000 in 3 days, and Alice chooses to exercise the call, the profit will be:
   Profit = (63,000–60,000)×0.1–62 = 238
   The rate of return from the call is 238/62=383%.
   If Alice only does this one single trade in the competition period, the rate of return is 238/500=47.6%.
2. If the BTC price remains below $60,000 for 3 days, Alice will not be able to exercise. The loss she may incur is the same as the premium, which is $62.
   If Alice only does this one single trade in the competition period, the rate of return is -62/500=-12.4%.
   (Please notice that Alice may choose to do multiple transactions during the period of the competition, in this case we have used one single transaction for simplicity’s sake.)

Example 2

Bob is participating in the competition with 10,000USDC. He believes that the ETH is going for a bear run in the short term. Therefore, he buys 100 units of ETH puts, with a strike price of $2,000 and an expiration of 7 days. The cost/premium is about $9,489 as follows.

1. If the ETH price drops to $1,800 in 7 days, and Bob chooses to exercise the put, profits will amount to:
   Profit = (2,000–1,800)×100–9,489 = 10,511
   The rate of return from the put is 10,511/9,489=110%.
   If Bob only does this one single trade in the competition period, his rate of return will be 10,511/10,000=105%.
2. If the ETH price stays above $2,000 for over 3 days, Bob will not be able to exercise. The loss he may suffer is the same as the premium, which is $9,489.
   If Bob only does this one single trade in the competition period, the rate of return is =-9,489/10000=-95%.

These examples above are some simple options strategies. More professional users may apply more complex options trading strategies that meet their expectations.

Welcome to join in the competition and win the rewards.