Payoff Dynamics

The following diagram shows the payoff dynamics for a Passage (2-day, 2x) with a BTC spot price of $16,500 and a width of 2% above and below spot. The high range is $16,830 and the low range is $16,170. BTC spot price must remain within that price range for the full 48 hours to achieve 100% profit (2x). The breakeven of a Passage would be the term divided by the multiple, so a 2x (48 hr) would breakeven in 24 hours.

Scenario, Matched Trade between Stay In and Breakout investors

Stay In Investor Asset: BTC Spot price: $16,500 Investment: Stay in, $100

Range width (%): 2% Range ($): $16,830 - 16,170 Contract term: 2-day Contract max profit: 100% First breakout: 12 hrs Breakout Investor Asset: BTC Spot price: $16,500 Investment: Breakout, $100

Range width (%): 2% Range ($): $16,830 - 16,170 Contract term: 2-day Contract max profit: 100% First breakout: 12 hrs Payoff calculation for 2x 2 day contract above 2X * Fraction of term (12/48hrs) 0.25 = 0.5X Stay In: 200*0.5X = $50 Breakout: 200 - ($50.00) = $150