Outcome Trading is Better than Futures Trading. Use our simple graphical user interface to draw and execute your own, safe, but powerful derivatives outcomes that cannot be liquidated.
The founders originally met at the first Ethereum meetups. Over the years we we’ve been disappointed to watch multiple projects simply re-create existing business models but on blockchain. Those products all come with the same flaws as the conventional system.
Re-engineering derivatives trading with blockchain for accounting and custody of collateral, automated market makers for pricing and execution, and innovative user interfaces allowed us to build something truly new.
Ultimately, we envision a future where individuals living anywhere, with any level of access to the financial system and any level of financial education can:
Bet on or hedge the price of almost anything
Build a market to trade derivatives on any price
Generate returns by providing liquidity
The main impediments to successful trading for the end user are lack of knowledge, lack of proper risk control, muddled thinking caused by fear, and being gamed by those with superior technology. We wanted to remove all these factors. We’ve embedded expertise in the tool, so the user can design the outcome he wants without worrying about which instruments will be traded.
Outcome Trading delivers this. We’ve built risk control into the tool, as all trades are bounded. We’ve removed the element of fear, as you know exactly what risk you are taking. Finally, we’ve secured the user against manipulative trades. No one can hunt down your stop loss or drive the market just to your liquidation level. Your risk is always limited and there can be no liquidation.
Visionary team with combined 60+ years experience in derivatives and start ups
An outcome is a visual representation (on an x-y coordinate plane) of a user’s desired profits and/or losses at different ending values of the underlying asset at maturity (different prices of Bitcoin, for example). The outcome is designed by the user. This is where our “outcome first” approach differs from any other existing derivatives protocol.
The UI includes a tab where a new outcome exactly opposite of a user’s existing position can be automatically created by pushing a button. Or the user can adjust, reduce, or add on to any exiting position by designing any new outcome desired.
A user's position may be trading at a loss, and may mature at a loss, but at no point will a user be forced out of a position.
Each trade’s initial counterparty is always an automatic market maker (AMM) which will take the other side of every trade.
The payout at maturity follows the outcome designed by the user. If a payout of $10,000 is shown at a particular value of the underlying asset, that is the payout that will be received if the price of the underlying asset is at that value at maturity. (This is all easier to understand visually. So, please watch the videos linked above.)
Any time a user elects to exit prior to maturity, a curve precisely opposite his position is generated by the system. The AMM then re-prices the outcome, based on the current price of the underlying asset, the volatility, interest rates, and the time remaining to maturity. These inputs determine the amount of collateral to be released to the user if he chooses to exit the position. This could be a gain or a loss.
The AMM prices trade exit using the Black-Scholes options pricing model. Every trade entry or exit is priced at theoretical value, plus or minus an adjustment for how much of the AMM’s liquidity the trade uses.
