Configure parameters
Every pool parameter changes what hedgers can buy and the risk your capital carries.
| Parameter | Range | Raising it | Lowering it |
|---|---|---|---|
| Offer per tenor | 90% to 500% of the fair price | More premium per contract; fewer buyers, who may go to cheaper pools | More sales; less premium per unit of risk |
| Closest strike allowed | 0% to 50% of today's rate | Only cover further from today's rate: fewer payouts, smaller premiums | Cover nearer today's rate: more payouts, larger premiums |
| Limited: smallest limit distance | From 0% of the strike | Every contract covers at least a wider band | Allows narrow, cheap cover |
| Limited: largest limit distance | Up to 100% of the strike; 0 means no limit | Larger contracts possible, more capital per contract | Limits the reserve per unit of notional |
| Open: maximum payout | 0.01% to 100% of today's rate | Each open contract can pay more and reserves more | Smaller reserves per contract |
| Outside underwriters | On or off | More capacity; your share of premiums shrinks | Only your capital backs the pool |
How the fair price is set
BlockFinaX's pricing engine calculates the fair price of each contract from the pair's volatility, its history of sudden moves and its long-term trend. Your offer multiplies it. See Pricing model.
The engine refuses to price contracts that would be far too cheap or too expensive for what they pay, whatever your offer.