Term and Expiration

All Passage contracts have a "term" e.g. 2 days, etc. The terms will start at the time of purchase and do not have common expiry. Example: a 2-day Passage purchased at 2:35pm will expire at 2:35pm in exactly 2 days' worth of time. Passages will automatically settle at the first breakout. Buyers will be compensated for the fraction of time the asset's spot price remains in the price range until it terminates relative to the full term.

At expiration, Passage will use Chainlink Automation to automatically settle the Passage contract. Chainlink Automation uses a decentralized network to monitor automation logic securely and cost-efficiently off-chain, and then initiate an on-chain transaction to execute the smart contract function when predefined conditions are met. To learn more, read about Chainlink Automation HERE.