Loan & option styles
InfinityPools has three instruments that can all be exercised differently:
Fixed term loan - this instrument is similar to a European synthetic option as it cannot be exercised before it matures (that said, same as a European synthetic option, you can still lock in profits at any point).
Revolving loan - this instrument most resembles an American synthetic option but is more powerful as traders can get a refund on "unspent" premium. In other words, if a trader pays a premium for an hour long trade but decides to exercise after 30 minutes, they will get back 50% of their paid premium.
Periodic loan - this instrument is a combination of the previous two, and is the main InfinityPools trade mechanism. Periodic loans start as fixed term loans and switch over to revolving loans after a preset lock in period.
Last updated