Bitcoin Forum
September 26, 2018, 01:55:44 AM *
News: ♦♦ New info! Bitcoin Core users absolutely must upgrade to previously-announced 0.16.3 [Torrent]. All Bitcoin users should temporarily trust confirmations slightly less. More info.
 
   Home   Help Search Donate Login Register  
Poll
Question: Do you trade options on crypto-exchange markets?
Yes, I trade - 4 (44.4%)
No, I do not trade - 3 (33.3%)
I don’t know what that is - 1 (11.1%)
I want to, but I don’t know where - 1 (11.1%)
Not interested - 0 (0%)
Total Voters: 9

Pages: [1] 2 3 »  All
  Print  
Author Topic: [ANN][Paused] APO - Advanced Parimutuel Options on Cryptocurrency  (Read 821 times)
APO Finance
Copper Member
Newbie
*
Offline Offline

Activity: 70
Merit: 0

Advanced Parimutuel Options


View Profile WWW
March 27, 2018, 09:43:13 PM
 #1



Website | Whitepaper | DEMO | FAQ | TELEGRAM Group | ANN (Dutch) | ANN (Japanese) | ANN (Russian)





What is the fundamental problem that APO is solving?

Today there is no way to short Bitcoin or any other crypto-currency. 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.


Article about Reverse Parimutuel on MEDIUM


General description

The APO platform allows participants to trade derivative instruments (options) without collateral and without risk of non-payment, unlike a centralized exchange.

  • The platform automatically creates a smart contract for the auction, which lasts until the expiration date, and terminates after making payments to participants
  • The platform operates without option sellers
  • APO does not act as an organizer of these auctions, but performs the functions of developing, maintaining and upgrading the source code

Over the years, crypto-currencies have proven their worth, and in the future, perhaps many of the world's financial systems will be built on top of them.
Now, the time has come for derivatives on cryptocurrencies to strengthen and stabilize the market.

The premium for such options is significantly lower than the payout in case of a win!


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


DEMO




VIDEO ABOUT




Reverse Parimutuel Options on Bitcoin read on Medium

In the previous article, we considered problems faced by centralized exchanges when creating a derivatives market for cryptocurrencies. We also proposed a solution that we developed, which we called reverse parimutuel options. Now let’s look at the practical side of trading reverse patimutuel options on Bitcoin.

The ability to make money on fluctuations in the price of an asset is one of the inalienable components of a financial market. It can done in several ways, such as buying the asset itself, buying the asset using leverage, buying futures or options. We will consider a case of using reverse parimutuel options on Bitcoin and compare them with buying and owning actual Bitcoin.

Assuming the reader is familiar with standard option calls and puts and read the previous article about reverse parimutuel. At the time of this writing, Bitcoin (BTC) was worth about $8,700. All calculations will be made based on this value.

Scenario 1: Rising Market

So, in order to purchase one BTC, we will need $8,700. If the value grows by $3,000, we will earn $3,000, if it falls by the same amount, then we will lose $3,000. What advantage does reverse parimutuel give us in this scenario?

First, let’s calculate the value of a reverse parimutuel call with a strike price of $8,500 and an upper limit for the option at $11,500 and 3 months to expiration. The premium will consist of the total cost of all base states (ranges) from 8,500 to 11,500 inclusive.


Reverse Parimutuel Call 8500 vs BTC

The total cost would be $315 or 3.7% of the price of BTC. In other words, in order to earn on the growth of Bitcoin, we would only need to pay $315 and if Bitcoin grows by $3,000, we will earn $2,685 ($3,000 — $315 is the profit minus the premium paid earlier). However, in the event of a drop in price of Bitcoin, the situation becomes much more profitable when compared to simply buying Bitcoin outright. If the value drops by $3,000, we would only lose $315, which is the original cost of options (called “predetermined risk”). The second-most important advantage of using options is for the leverage effect. In order to earn on the rising price we only need to invest $315 instead of $8,500, in other words for $8,500 we can buy 26 options and earn 26 times more than buying 1 Bitcoin.

Scenario 2: Falling Market

As we outlined in the previous article, it is extremely difficult to create short sale on the crypto-currency market, and all attempts to implement it were taking a step back, back to the centralized exchanges. Standard options for cryptocurrencies, due to their unique qualities, carry huge premiums even though the buyer has no guarantee that the seller will pay. Therefore, in the event of a fall in the market, if you have a cryptocurrency in your portfolio, you have nothing left to do but to wait it out or sell everything at the market. Who knows when a bear market will end and the growth will begin again?

Let’s consider a reverse parimutuel put with a strike price of $9,000, a lower limit of $6,000, expiring in 4 months and calculate its premium.


Reverse Parimutuel Put 9000 vs BTC

The total cost of the option premium will be $315 or 3.7% of the BTC price (exactly the same as for the call. This is because we are using the price of Bitcoin at 8,700 and the premiums for call and put options should be the same in order to exclude the possibility of arbitrage). So, if we own Bitcoin and the market falls, our portfolio will lose proportionally to the market. But, if we buy a put option for $315 and the market drops by $3,000, then we will profit by the fall of $2,685 ($3,000 — $315 or profit minus the premium paid earlier). What that means is that derivatives can function in the crypto-currency market, and this is an excellent tool for it whether trading long or short. If you add the effect of leverage, then in a falling market you can earn multiple times more than selling Bitcoin futures (due to the huge collateral now required by exchanges).

Scenario 3: Hedging Risk for Miners and ICO

This scenario is more suitable for companies or private investors who are engaged in crypto-currency mining, as well as for companies that conduct ICOs.
For mining, a fall in the exchange rate directly affects profitability, and for companies conducting an ICO, the exchange rate affects financial planning.
In both cases, buying a put option is ideal. To insure their portfolios, miners will need to buy as many put options as they plan to produce in 3 month period. As a result, this insurance will cost them 3.7%. So, if at the expiration date the exchange rate is lower, the company can compensate for the loss with the profit from the exercise of the put options (minus the premium paid). Companies conducting ICOs can choose options with a shorter term, and lock in the rate for the date the ICO begins.

Conclusion

Options are universal financial instruments that can be used in many scenarios and have numerous advantages, such as:

  • 1. Provide leverage, in our example 26 to 1
  • 2. Limit risk in the event of a market movement in the opposite direction
  • 3. Allow an investor to profit in a falling market
  • 4. Provide the ability to insure a portfolio against depreciation

We want to invite you to participate in the creation of a new market based on cryptocurrency derivatives. This is another step towards changing the global financial system.


Tokens sale

Name: APO
Start: April 25, 2018, 10:00:00 am UTC
End: May 23, 2018, 9:59:59 am UTC
Acceptable currencies: ETH
Tokens exchange rate: 1 ETH = 15,000 APO + Bonus
Minimum transaction amount: 0.1 ETH
Soft cap: $3mln ~ 5,500 ETH
Hard cap: $7mln ~ 12,700 ETH

If by the end of the sale the soft cap is not reached, each and every investor will get their money back.


Token Distribution

40% - ICO
25% - Reserve (locked for 12 month)
20% - Team (locked for 12 month)
10% - Private Investors
5% - Bounty


Functions of tokens

  • To provide the financing for development and marketing of the platform
  • Gives the holder the right to receive a percentage of commission collected by the platform


Discount:

1st Week - 25% Bonus
2nd Week - 15% Bonus
3rd Week - 5% Bonus
4th Week - 0% Bonus


Projections:




Bounty:

OFFICIAL BOUNTY CAMPAIGN TOPIC


Team:




Social:

TELEGRAM Channel |  TELEGRAM Group | Slack | Twitter | Reddit
1537926944
Hero Member
*
Offline Offline

Posts: 1537926944

View Profile Personal Message (Offline)

Ignore
1537926944
Reply with quote  #2

1537926944
Report to moderator
1537926944
Hero Member
*
Offline Offline

Posts: 1537926944

View Profile Personal Message (Offline)

Ignore
1537926944
Reply with quote  #2

1537926944
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1537926944
Hero Member
*
Offline Offline

Posts: 1537926944

View Profile Personal Message (Offline)

Ignore
1537926944
Reply with quote  #2

1537926944
Report to moderator
SeveralQ
Member
**
Offline Offline

Activity: 182
Merit: 11


View Profile
March 28, 2018, 06:22:08 PM
 #2

Hi everyone! Just added the APO Finance ICO to my website https://concourseq.io/Q/APO_Finance. ConcourseQ is a collaborative due diligence community that researches and reviews ICOs. Anyone with an account can submit information to your page, so we are reaching out to this community to get you all involved in the discussion. Thanks! PS: If you have any questions about filling in the info, feel free to ask us in our discord group: https://discord.gg/j8RBAwB
Erhan5532
Newbie
*
Offline Offline

Activity: 97
Merit: 0


View Profile WWW
March 29, 2018, 07:33:27 AM
 #3

https://i.imgur.com/dcqIvPo.png

Website | Whitepaper | DEMO | FAQ

General description

The APO platform allows participants to trade derivative instruments (options) without collateral and without risk of non-payment, unlike a centralized exchange.

The platform automatically creates a smart contract for the auction, which lasts until the expiration date, and terminates after making payments to participants.
The platform operates without option sellers.
APO does not act as an organizer of these auctions, but performs the functions of developing, maintaining and upgrading the source code.

Over the years, crypto-currencies have proven their worth, and in the future, perhaps many of the world's financial systems will be built on top of them.
Now, the time has come for derivatives on cryptocurrencies to strengthen and stabilize the market.

What problems does the APO solve?

- Cryptocurrency selling short
- Derivatives on cryptocurrency

APO is not a centralized exchange!


Article about Reverse Parimutuel on MEDIUM

DEMO

https://i.imgur.com/LEROjyF.png

VIDEO ABOUT

Tokens sale

Name: APO
Start: April 25, 2018, 10:00:00 am
End: May 23, 2018, 9:59:59 am
Acceptable currencies: ETH
Tokens exchange rate: 1 ETH = 15,000 APO
Minimum transaction amount: 0.1 ETH

Token Distribution

40% - ICO
25% - Reserve (locked for 12 month)
20% - Team (locked for 12 month)
10% - Private Investors
5% - Bounty

Functions of tokens

- To provide the financing for development and marketing of the platform
- Gives the holder the right to receive a percentage of commission collected by the platform

Discount:

1st Week - 25% Bonus
2nd Week - 15% Bonus
3rd Week - 5% Bonus
4th Week - 0% Bonus

Bounty:

OFFICIAL BOUNTY CAMPAIGN TOPIC

Team:

https://i.imgur.com/e830pGI.png

Social:

Telegram | Slack | Twitter | Reddit
Brodika
Newbie
*
Offline Offline

Activity: 154
Merit: 0


View Profile
March 29, 2018, 03:27:39 PM
 #4

Read the whitepaper, looks promising for future. intend to invest more in this project.
Brooku
Newbie
*
Offline Offline

Activity: 135
Merit: 0


View Profile
March 29, 2018, 06:16:25 PM
 #5

It looks great with interesting ideas behind the project. Please update more details as soon as possible, dev. I need more information before deciding investing in the project.
APO Finance
Copper Member
Newbie
*
Offline Offline

Activity: 70
Merit: 0

Advanced Parimutuel Options


View Profile WWW
March 29, 2018, 06:18:17 PM
 #6

Explain   such a question. What do you plan to do with unsold tokens after the ICO?

The APO token is mintable. A smart contract produces tokens only for each participants. Without participant them do not exist.
APO Finance
Copper Member
Newbie
*
Offline Offline

Activity: 70
Merit: 0

Advanced Parimutuel Options


View Profile WWW
March 29, 2018, 06:19:36 PM
 #7

It looks great with interesting ideas behind the project. Please update more details as soon as possible, dev. I need more information before deciding investing in the project.

Thank you for interesting! What kind of additional information you want to receive?
Mihawk
Sr. Member
****
Offline Offline

Activity: 673
Merit: 260


@Crypto_Mihawk


View Profile
March 29, 2018, 06:46:30 PM
 #8

In short the interface of the original version is identical with the demo version? With the positive response, is something innovative and attractive and we must accompany the outcome of this project. Awaiting Information.
APO Finance
Copper Member
Newbie
*
Offline Offline

Activity: 70
Merit: 0

Advanced Parimutuel Options


View Profile WWW
March 29, 2018, 06:56:18 PM
 #9

In short the interface of the original version is identical with the demo version? With the positive response, is something innovative and attractive and we must accompany the outcome of this project. Awaiting Information.

The demo version has an interface for a visual demonstration of the mathematical model. In the real platform, the interface will contain a large number of parameters that are necessary for building a portfolio for investors. Also, revaluation of premiums will occur in real time on the basis of received bids.
APO Finance
Copper Member
Newbie
*
Offline Offline

Activity: 70
Merit: 0

Advanced Parimutuel Options


View Profile WWW
March 31, 2018, 03:29:36 PM
 #10


When will i be able to sell tokens which were bought during ICO on  exchanges?


The first priority for us is to create a platform and bring it to perfection, both in terms of transaction speed and security, and usability. We will be engaged in listing tokens on exchanges and expect that in 4-6 months they will be traded on exchanges.
VVB
Newbie
*
Offline Offline

Activity: 3
Merit: 0


View Profile
March 31, 2018, 03:54:16 PM
 #11

Will I be able to buy options to short BTC?
APO Finance
Copper Member
Newbie
*
Offline Offline

Activity: 70
Merit: 0

Advanced Parimutuel Options


View Profile WWW
March 31, 2018, 05:26:23 PM
 #12

Will I be able to buy options to short BTC?

You can trade both short and long after launch in two pairs: BTC/USD and ETH/USD. The platform allows you to build call and put options, and later time spreads.
APO Finance
Copper Member
Newbie
*
Offline Offline

Activity: 70
Merit: 0

Advanced Parimutuel Options


View Profile WWW
March 31, 2018, 06:18:26 PM
 #13

Please, read a new article about option trading.

Cryptocurrency derivatives
APO Finance
Copper Member
Newbie
*
Offline Offline

Activity: 70
Merit: 0

Advanced Parimutuel Options


View Profile WWW
April 02, 2018, 04:59:23 PM
 #14

We are collecting feedback.
VVB
Newbie
*
Offline Offline

Activity: 3
Merit: 0


View Profile
April 02, 2018, 06:45:15 PM
 #15

This seems like a great idea - any other opinions?
Murile
Member
**
Offline Offline

Activity: 308
Merit: 10

https://eloncity.io/


View Profile
April 02, 2018, 06:59:25 PM
 #16

I'm suprised that this great project is still so cheap. Chance to buy in indeed.

LoveCryptoAll
Sr. Member
****
Offline Offline

Activity: 406
Merit: 252


The revolutionary trading ecosystem


View Profile WWW
April 02, 2018, 07:05:07 PM
 #17

Looked at the information about the project. So to speak. I understand that the project is cool, but there is not enough knowledge in the financial field. I would like more details on the mechanisms. A simple explanation of what an option is, a directive?

|
|
QRX|
|
QURREX - QRXTest MVP |Source
www.qurrex.com

████
 ████
  ████
   ████
    ████
     ████
      ████
       ████
        ████
       ████
      ████
     ████
    ████
   ████
  ████
 ████
████

████
 ████
  ████
   ████
    ████
     ████
      ████
       ████
        ████
       ████
      ████
     ████
    ████
   ████
  ████
 ████
████
Kevala
Member
**
Offline Offline

Activity: 266
Merit: 10


View Profile
April 02, 2018, 07:06:45 PM
 #18

How do I invest in apo? Does it require KYC?
APO Finance
Copper Member
Newbie
*
Offline Offline

Activity: 70
Merit: 0

Advanced Parimutuel Options


View Profile WWW
April 02, 2018, 07:32:14 PM
 #19

Looked at the information about the project. So to speak. I understand that the project is cool, but there is not enough knowledge in the financial field. I would like more details on the mechanisms. A simple explanation of what an option is, a directive?

Hello! Thank for your interest. In the announcement, we provided general information about the upcoming ICO. More details are described in the WP, as well as 2 articles published in the Medium.

https://medium.com/@apofinance/cryptocurrency-derivatives-df5c979a59a7

https://medium.com/@apofinance/reverse-parimutuel-on-cryptocurrency-option-trading-f5e05274cab9


More information about stock options you can read here:

https://www.investopedia.com/exam-guide/cfa-level-1/derivatives/options-calls-puts.asp

In short, we offer to participate in the creation of a new financial instrument that has much in common with typical options, but also have a lot of differences.
APO Finance
Copper Member
Newbie
*
Offline Offline

Activity: 70
Merit: 0

Advanced Parimutuel Options


View Profile WWW
April 02, 2018, 07:33:18 PM
 #20

How do I invest in apo? Does it require KYC?


Not, we don't require KYC.
Pages: [1] 2 3 »  All
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!