Key Concepts

2 min read

The vocabulary you need to use Raven Market confidently.

Digital Option

A contract that pays a fixed amount if a price condition is met at expiry, and zero if it isn't. Also called a cash-or-nothing option. Payouts are denominated in the market's settlement currency — ONE for Bitcoin (CBTC) markets, CC for CC markets. Always refer to these as digital options.

CALL

An option that pays out if the underlying asset settles above the strike price at expiry. Buy a CALL when you believe the price will go up.

PUT

An option that pays out if the underlying asset settles below the strike price at expiry. Buy a PUT when you believe the price will go down.

Strike Price

The reference price that determines the outcome. Strikes are set as percentage offsets around the current market price of the underlying asset when a contract opens.

Cadence

The duration cycle of contracts. Raven offers Daily (settling at 12:00 GMT every day) and Weekly (settling at 12:00 GMT every Friday). The cadence toggle in the interface switches between the two.

Expiry

The fixed time at which the contract settles. At expiry, the Chainlink oracle delivers the final settlement price and all positions resolve automatically.

Stake

The amount you put in to buy a digital option, denominated in the market's settlement currency (ONE or CC). This is your maximum possible loss — you cannot lose more than your stake under any circumstances.

Fixed Payout

The exact amount you receive if your digital option expires in-the-money, in the market's settlement currency. Always displayed on the order ticket before you confirm. No surprises.

Payout Odds

The ratio of your stake to the fixed payout, shown as a number between 0 and 1 in the digital options chain. Odds of 0.53 means you pay 0.53 to win 1.00 (in the market's settlement currency) — a 53% implied probability. Odds update live as the pool reserve shifts with trading activity.

ITM / OTM

In-the-Money (ITM) — the option expires with a payout. Out-of-the-Money (OTM) — the option expires worthless and the stake is lost.

ATM (At-the-Money)

The strike set at or very near the current market price. ATM options have the most balanced odds and highest open interest.

Protocol Pool

The on-chain vault acting as counterparty to all trades. At launch, seeded and managed by the protocol directly — no user LP deposits required.

ONE

Alpend's settlement token on Canton Network. Used as the collateral and payout currency for Bitcoin (CBTC) digital options markets on Raven.

Canton Coin (CC)

Canton Network's native digital asset. Used as the collateral and payout currency for CC digital options markets on Raven.

CBTC

Wrapped Bitcoin on Canton Network. The underlying asset for Raven's Bitcoin digital options markets — settled in ONE.