Contracts & Lifecycle
3 min read
How Raven contracts are structured — and the predictable daily rhythm that defines the protocol's trading experience.
Contract Cadences
| Cadence | Settlement Time | Trading Window Closes | Strike Offsets |
|---|---|---|---|
| Daily | 12:00 GMT every day | 11:00 GMT (1 hour before) | Dynamic — set at open based on implied volatility |
| Weekly | 12:00 GMT every Friday | Midnight Thursday/Friday | Dynamic — set at open based on implied volatility |
Each cadence view shows three periods: the previous (settled), the current (active for trading), and the next (upcoming). Use the cadence toggle in the interface to switch between Daily and Weekly.
Strike Structure
When a contract opens, three strikes are set anchored to the current CC market price: one below (OTM put side), one at-the-money (ATM), and one above (OTM call side). The offset distance between strikes is not fixed — it is calculated dynamically at the time the contract opens based on implied volatility. Higher volatility markets will produce wider spacing; lower volatility markets will produce tighter spacing. This keeps strikes economically meaningful regardless of market regime.
| Strike Level | Tag | Offset |
|---|---|---|
| Lower Strike | OTM — Put side favored | Calculated from implied volatility at open |
| ATM Strike | At-the-Money — balanced odds | Current market price |
| Upper Strike | OTM — Call side favored | Calculated from implied volatility at open |
Contract States
Every contract moves through a defined lifecycle shown via the status badge in the interface:
| State | What It Means |
|---|---|
| Trading | Contract is open. New positions can be entered. Odds update live. |
| Closing Soon | Trading window is ending. No new positions accepted. A live countdown is shown. |
| Settlement Pending | Contract expired. Awaiting Chainlink oracle price. Positions are locked. |
| Settled | Oracle price received. All outcomes determined. Winning payouts sent automatically. |
| Oracle Error | Settlement price could not be confirmed. All CC stakes returned to traders in full. |
The Daily Cycle
- Contract Opens — New contract goes live. Strikes set at current CC price ± offsets. Odds start at equilibrium.
- Trading Window — Positions can be opened and closed. Odds update continuously.
- Closing Soon — Trading window ends. No new entries. Amber banner with countdown displayed.
- Settlement Pending — Contract expired. Chainlink oracle feed is being read.
- Settled — Final CC price locked from Chainlink. ITM options paid out automatically. OTM expire worthless.
- Next Contract Opens — A fresh contract opens immediately, strikes reset to current conditions. Cycle repeats.