Welcome my friends to the exciting new ICO today and let's take a look at their great idea:
The APO platform provides a platform for buying options on crypto-currencies, both long and short!
The fact is that cryptocurrencies do not correlate with one other and are not tied to fiat money. Therefore, it is impossible to make a tool for selling short similar to what currently exists on the market. Every attempt to create options and futures for crypto-currencies on centralized exchanges led to high collateral for futures (80-100% of the price of the crypto-currency itself), or very high premiums for options which render these instruments impractical. The root cause of these problems is the fact that sellers (those who write options) cannot hedge their risk.
Why is solving this problem so important?
Lack of instruments such as options and futures makes the market extremely vulnerable to fluctuations, (based on news or market manipulation) because participants have no way to hedge against falling prices.
The crypto-currency market is what’s called “an incomplete market” – for us it was of high interest to solve this type of problem and create a tool that does not violate the principles of the crypto-currency community.
Who benefits from this solution?
The addition of a derivative crypto-currency instrument with a guarantee of payment on expiration date benefits all participants. For example:
- Miners can insure against the risk of depreciation in order to maintain profitability
- Individual traders can use options to speculate on falling, as well as rising, prices
- Companies conducting ICOs can protect the cryptocurrency value raised during the ICO so that it will not be diminished by price fluctuation when they need to convert it to fiat money
How is this solution unique?
- This is a unique tool developed by the team conducting the ICO
- Part of a blockchain network in the form of smart contracts
- There is no need for option sellers
- Does not require collateral
What does it mean for the cryptocurrency market?
The creation of derivative instruments is a huge step forward for the crypto-currency market. They affect the nature of the market itself, providing stability and help further growth.
What do we have?
- A mathematical model of the idea implemented in program code;
- A ready-made auction prototype - it is presented on the website as a working model for calculating premiums;
- Specialists in the field of blockchain technology and server-side programming.
How it works
The date of the auction is appointed one week before expiration. The frequency and duration of the auction will be determined during Beta testing.
We intended to use the standard expiration dates for options:
- 2 weeks
- 1 month
- 3 months
Based on this, the frequency of the auctions will depend on the nearest expiring contract, such as 1 week before the expiration of 2-week options, monthly options, or 3-month options.
The main purpose of the auction - calculation of premiums and payments based on submitted bids. Each participant constructs the desired option or chooses one from a template, and enters the strike price of the underlying asset (BTC or ETH). After that, the participant chooses the type of order - market or limit and transfers the amount required to buy the option to the account of the smart contract.
- Announcement of the date and time of the auction
- Start of the auction
- Collection of orders (limit and market)
- End of the auction
- Calculation of commission and payments for each trade
After the auction is over and all the submitted bids are counted, a pool is formed. After the completion of the transaction, each participant using their own account through a website or mobile application, can see the options that accrued (along with their parameters) and monitor their value until expiration.
- Filling market orders and filling/rejecting limit orders
- Calculation of commission and recording into the pool
- Recording of option buyers
Expiration is the moment when the contract expires, and is the date of settlement. The option execution date is indicated in advance during the auction, for example, 12 am on January 12, 2018. At the time of expiration, the price of the underlying asset is locked in (the price of BTC or ETH index is taken from several major exchanges for determination). Based on that price, payments are made to option holders. After the execution, each participant can check the status of their account.
- Locking-in the price of the underlying (Bitcoin/USD or Ethereum/USD)
- Publishing cut-off price
- Payout to participants who’s options are profitable
Advanced Parimutuel Options Demo (MVP)
Token Name APO
Token Type ERC20
ICO Starts April 25th, 2018 at 10:00:00 AM UTC
ICO Ends May 23rd, 2018 at 09:59:59 AM UTC
Soft Cap 5,500 ETH
Hard Cap 12,700 ETH
Token Rate 1 ETH = 15,000 APO
Min Transaction Amount 0.1 ETH
3rd quarter 2017 – Theoretical development of the idea
1st quarter 2018 - Development of a platform for attracting investments
2nd quarter 2018 - First phase of ICO
3rd quarter 2018 - Development of an auction platform
4th quarter 2018 - Beginning of Beta Testing
1st quarter 2019 - Release of the system
2rd quarter 2019 - Start of development of a system for trading, in part, of options and sale of designer options (Option Marketplace)
3rd quarter 2019 - Beginning of Beta testing Option Marketplace
4th quarter 2019 - Release of Option Marketplace
To contribute and Know the progress of this offer, you may visit some of the following Links:
The bitcointalk name: Aray80
ETH Address :