Combo options and position builder

Alcor Finance enables to trade combo options such as spreads, butterflies, etc. It significantly increases the capital efficiency due to cross-collaterization mechanism.

Example (numbers are not related to the chart above)

Suppose option trader sells Ethereum Call Spread option with strikes: \newline

K_1 = $4000,
K_2 = $4500
Required collateral is calculated as a maximum payoff of the option. In this case, maxium payoff is:

$Max\_{PnL} = \frac{K_2-K_1}{K_2} = \frac{4500-4000}{4500} = 0.11$

This means 9x capital efficiency.

More importantly,

Under the hood, user interacts with vanilla option pools, no additional option pools are required for combo options.

Position builder