Pricing changes

• After initialization, the option will be available for trading on BullvBear

• As long as there are no open positions on the collection, the price will keep updating every 5 to 15 minutes to make sure to stay in line with the evolutions of the floor price on the main marketplaces

• When someone makes a position, price will be frozen on that position price for a set period of time for the collection (1 hour for pumping collections), to enable people to match and take that position.

  • After this hour, if he has not been matched, or if people have only piled on the same side, we will have a certain number of Expired Orders, and the percentage of Settlement Price vs Floor Price will be updated for the future pricings as follows :

$$UnmatchedRatio = \frac{NumberOfExpiredOrders}{TotalNumberOfMadeOrders}$$

If the Expired Orders are Buy Orders :

$$SettlementToFloor_{t+1} = SettlementToFloor_{t} *\newline (1+UnmatchedRatio*SettlementChangeRate)$$

If the Expired Orders are Sell Orders :

$$SettlementToFloor_{t+1} = SettlementToFloor_{t} *\newline (1-UnmatchedRatio*SettlementChangeRate)$$

• SettlementChangeRate will be defined by BullvBear and refined as trading goes to adapt to trading volumes.