What options strategy is traded?

Pure Options Vaults


  • Pure Options Vaults trade a version of the fixed coupon notes (FCN) except that there is no bond element in the structure. This removes notional from being partially lent out (no user deposited capital leaves the Cega smart contract) which may make the product more enticing for users who do not want exposure to lending yield/risk.

  • Traditionally, FCNs are are a type of exotic option structured product that has both equity option and bond-like characteristics. However the bond-like characteristics is removed from Pure Options Vaults

  • Investors earn high, daily yield payments on their deposited capital until the FCN expires/matures

  • At expiry, the initial deposit is returned to investors in full if the price of the FCN's linked crypto assets have not fallen by a significant amount (e.g. 50% or more)

  • FCNs are valuable investments for investors seeking superior yields, lower risk, and who are positively or moderately bullish on the price of the underlying crypto assets

FCNs behave like bonds because ...

  • There is a periodic yield payment ("coupon") that is a predetermined, fixed amount

FCNs behave like equity because ...

  • The value of the FCN is linked to the price performance of underlying crypto assets and when asset prices are down significantly, the principal experiences loss of value

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