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. |
| Invalidated | The market was invalidated and could not be settled. This may occur due to oracle failure, data unavailability, or other exceptional circumstances. All CC stakes are 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.