Options, as a financial derivative instrument, grant the holder the right to buy or sell a certain amount of the underlying asset at a predetermined price at a specific time in the future, without obligation. Therefore, the high leverage of options is unilateral leverage, that is, there is no liquidation price.

Perpetual futures contracts, like options, provide high leverage transactions, but the leverage of futures is a two-way leverage of ups and downs. When the market falls, the long position will trigger the liquidation price and cause the position to be liquidated. Even if the market rises again later, it will not be profitable because the position has been liquidated. Similarly, short positions will be liquidated when the market rises, and it will not be profitable even if the market continues to fall.

In contrast, the high leverage of options is unilateral high leverage. When buying call options, no matter whether the intermediate market falls or not, as long as the market rises when the option expires and is liquidated, a hundredfold increase in profit will be obtained. At the same time, for put options, no matter whether the intermediate market rises or not, as long as the final market falls, the put option will obtain a hundredfold leveraged return under the market.

Therefore, for contract traders who want to use high leverage to make a small bet for a big gain and judge the rise and fall of the market but are afraid of liquidation, option contracts are a better choice to avoid liquidation.

300 times high leverage that will never cause liquidation, Jasper Vault's 0DTE

As a flexible and potential investment method, option trading has gradually gained wide recognition among investors. Gunjan Banerji, a well-known market reporter for the Wall Street Journal, said that stock market investors are turning to 0DTE (0 Days to Expiration) options, which is one of the biggest changes in the financial market in the past decade. 0DTE options account for half of the total trading volume of S&P 500 index options.

0DTE options refer to option contracts that expire and are automatically liquidated on the day of trading, which means that the option has less than 24 hours left to expire.

Jasper Vault has optimized the traditional 0DTE option and developed an equivalent option whose strike price is always consistent with the market price. This means that option buyers only need to judge the rise or fall of the market like investing in the spot market, and the strike price of the option is always consistent with the market price at that time. In this way, the intraday equivalent option becomes a leveraged investment contract with high leverage.

This design not only retains the advantage of high leverage, but also solves the problem of fixed delivery time in traditional option trading. In view of the 24/7 trading characteristics of the cryptocurrency market, Jasper Vault has launched rolling 2-hour, 8-hour and 24-hour intraday options to meet the needs of investors in different time zones around the world.

Jasper Vault's 0DTE options are more flexible in terms of time. Investors can choose to settle 2 hours, 4 hours, 8 hours, 12 hours, 16 hours, 20 hours or 24 hours after placing an order, rather than a fixed expiration time. Such flexibility allows users to open orders freely and capture the best time for market fluctuations regardless of which time zone they are in.

More importantly, Jasper Vault's 0DTE options have a unilateral high leverage attribute, and the leverage multiple can be from 80 times to 300 times depending on the expiration time period. However, unlike traditional perpetual contracts, Jasper Vault's 0DTE options will not cause a liquidation in extreme market conditions within the time period. Even if the market price fluctuates violently, it will not affect the final return, ensuring the safety of investors.

Suppose a user believes that the price of ETH is about to rise (current price $3,100), and pays $20 to buy an 8-hour call option in Jasper Vault. If ETH rises to $3,300 after 8 hours, the user's net profit is $180 ($3,300 - $3,100 - $20), a yield of up to 900%. In this case, the user actually uses up to 155 times leverage ($3,100/$20), but even if the price of ETH falls to any price within these 8 hours, the user will not be liquidated.

In order to allow more users to experience the unique charm of 0DTE options, Jasper Vault has launched a minimalist version of Degen options. Users only need a minimum of $2 to participate in the transaction and experience the product logic of Jasper Vault 0DTE options. This not only lowers the entry threshold, but also gives more investors the opportunity to try this high-yield, high-leverage, and no-liquidation risk financial instrument.

Intraday options vs. perpetual contracts, which one has higher leverage?

In terms of leverage multiples, mainstream perpetual contract exchanges usually offer up to 200 times leverage. However, Jasper Vault's 0DTE options go a step further on this basis and provide a higher leverage multiple.

For example, the leverage multiples of BTC are 87 to 300 times, the leverage multiples of ETH are 79 to 275 times, and the leverage multiples of small currencies are 51 to 178 times.

Another major advantage of Jasper Vault 0DTE options is that they can ensure that there will be no liquidation within a specified time period. Taking the 24-hour ETH option as an example, the leverage provided by Jasper Vault 0DTE is 79 times. During these 24 hours, no matter how the market fluctuates, investors' positions will not be closed in advance, and the final returns will not be affected by mid-term fluctuations.

At the same time, a higher leverage multiple means that investors can leverage a larger market value with relatively less funds, thereby obtaining higher returns in market fluctuations.

In contrast, perpetual contracts with 79 times leverage will trigger a liquidation once the market reverses by more than 0.3%, and even a liquidation phenomenon will occur under extreme fluctuations. Even if the market returns to the direction expected by users after 24 hours, investors' positions have already been liquidated. This high risk of liquidation greatly reduces the stability and security of perpetual contracts in high-leverage transactions.

In addition to higher leverage and avoiding liquidation risks, Jasper Vault 0DTE options also perform well in terms of capital utilization efficiency. When paying the same funds and using the same leverage, Jasper Vault 0DTE options have no additional fees, and the market price at the time of opening a position is the final option leverage strike price. Perpetual contracts involve opening fees and slippage issues, which not only increase transaction costs, but may also reduce the actual leverage effect.

In terms of the choice of high-leverage trading tools, Jasper Vault's 0DTE options are obviously superior to traditional perpetual contracts in many aspects. Higher leverage, more efficient capital utilization, and a design to avoid liquidation make Jasper Vault 0DTE options an ideal choice for investors seeking high returns.

Play with volatility, long and short positions

As the hottest trading tool in today's financial market, options have attracted many investors with their flexible and changeable gameplay. Whether you are a fundamental analyst who loves spot trading or a trader who is proficient in technical analysis.

Market volatility is one of the important sources of profit for investors. The Federal Reserve's interest rate decision may affect the market trend and amplify price fluctuations. For keen investors, this is not only a risk, but also an opportunity. Through Jasper Vault 0DTE, investors can open long and short positions before the decision is announced, and buy call and put options at the same time to capture the value generated by volatility.

The Federal Reserve announced its interest rate decision at 14:00 on May 1, Eastern Time. At 7:00 a.m. on the same day, the investor spent about $40 to buy 1 ETH call option and 1 put option through Degen Options. At that time, the price of ETH was $2,894. As the market reacted to the interest rate decision, the price of ETH rose to $2,990 when the option expired. The investor thus made a net profit of about $56.

The long-short double opening strategy, also known as Straddle, is a classic option trading strategy. The Straddle strategy suppresses market volatility by purchasing call options and put options on the same asset at the same time. This strategy is often used in situations where major market fluctuations are expected, such as major fundamental events or technical Bollinger Band breakthroughs. However, since it is difficult to accurately determine the specific direction of the market, through the Straddle strategy, investors can profit whether the market is rising or falling.

Jasper Vault is the only platform in the industry that provides intraday equivalent Straddle. This means that investors can buy both call and put options at the same strike price in the same time period to maximize the use of market fluctuations.

The advantage of Jasper Vault 0DTE lies in its flexibility and accessibility. As a multi-time option product, it allows investors to participate in short-term market fluctuations at a very low cost. This not only lowers the threshold for participation, but also provides investors with a tool to quickly respond to market changes. In addition, Jasper Vault 0DTE is designed with user experience in mind and simplifies the trading process, making it easy for even newcomers to option trading to get started.

The underlying technology of Jasper Vault is built on account abstraction and smart wallets. Based on ERC-4337, Jasper Vault provides a peer-to-peer option client interoperability protocol, allowing all leverage and option transactions to be directly cleared between option buyers and option sellers, thereby ensuring that the delivery of options will not have the risk of counterparty default under any market fluctuations. In addition, users do not need to deposit any trading funds into the platform. The trading funds are always in the smart account controlled by the self-custodial wallet, ensuring the safety of customer funds.

On the eve of the outbreak of crypto options

With the rapid development of the global financial market, cryptocurrency options trading is gradually becoming the focus of investors. With the intensification of market volatility and the increase in investors' demand for high-return tools, Jasper Vault 0DTE options provide investors with a new way to capture short-term market fluctuations with their short-term, low-cost and high flexibility.

In terms of compliance and legality, the peer-to-peer interoperability protocol layer has a natural advantage. All transactions of Jasper Vault are directly issued by customers from their own wallets, interacting directly with another wallet address, and customers do not need to deposit funds into the platform. This design not only avoids currency mixing, but also ensures the security of customer funds.

In addition, the Jasper Vault platform is connected to two sets of anti-money laundering and KYT systems to ensure that all interacting wallets are safe. In this way, Jasper Vault realizes the clearing of options directly between the wallets of the buyer and seller of options. The platform does not hold the assets of the two parties in the entire transaction process, nor does it store private keys, thereby eliminating counterparty risk and default risk.

Jasper Vault has created a concept that truly realizes that Web3 users have full control over their assets. Users can trade options without any permission, and the platform design ensures that options are cleared without any counterparty risk. Such seamless connection and security make Jasper Vault one of the most innovative and secure options trading platforms on the market.

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