πStatus system
Description of insurance policy states
When the insurance contract is successfully margined, the corresponding initial status is βValidβ. Depending on the P-Market volatility during the term or at the time of expiration, the contract will have the following termination states:
Status | Description |
Claimed |
|
Refunded |
|
Liquidated |
|
Canceled |
|
Invalid |
|
Explanation of reasons for closing the insurance contract
P-Market hits P-Claim | When the asset price hits the P-Claim during the contract period |
Expire Contract | When the contract expires, the asset price does not hit the P-Claim nor the P-Expire |
P-Market hits P-Expire | When the asset price hits the P-Expire level during the contract period |
Users cancel contract before expiration | The user cancels the contract when all conditions are met |
Example: Given the fear of risk when the BTC asset price decreases (52156.9) after you have purchased a BTC derivative with a increasing price, the user chooses to receive BEAR insurance support (as shown in the figure):
The user needs to deposit 23 USDT to buy a Standard insurance plan (5-2,000 USDT) with a Bear expectation for the BTC/USDT asset pair, at a P-Open price of 52,156.9 with a validity period of 12 hours. In this case, the default P-Claim is 46,644.09, P-Expire is 60,053.9, and P-Refund is 51,856.9.
This means that within 12 hours:
When the BTC price drops to 46,644.09, hitting P-Claim, the system will pay 48,91 USDT back to the user's wallet.
When the BTC price is between P-Open 52,156.9 and P-Refund 51,856.9, the contract will be liquidated.
When the BTC price is between P-Refund 51,856.9 and P-Claim: 46,644.09, the contract will be refunded.
When the BTC price is between P-Open 52,156.9and P-Expire 60,053.9, the contract will be liquidated.
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