Rounding and limits
Units
| Quantity | Precision |
|---|---|
| USDC amounts | 7 decimal places (0.0000001 USDC) |
| Rates (today's rate, strike, limit, settlement) | 6 decimal places |
| Fair rate, offer rate, fee rates | Millionths of the notional or amount (0.000001) |
| Markups and distances | Hundredths of a percent (basis points) |
Rounding
Every division rounds down to the smallest unit. In practice:
- you are never charged more than the formula gives;
- a payout is never more than the formula gives;
- when a reserve, premium or payout is split between underwriters, any leftover smallest units are assigned to the backers in order, so the parts always add up exactly to the whole.
Limits
| Limit | Value |
|---|---|
| Minimum notional, deposit and pool seed | 10 USDC |
| Tenor | 1 to 365 days |
| Tenors per pool | 16 |
| Markup | 90% to 500% of the fair price |
| Underwriters per pool | 50 |
| Strike | Payables: from today's rate up to (not including) 2×. Receivables: from today's rate down to (not including) 0.5×. |
| Closest strike a pool may set | 0% to 50% |
| Limit | Between 0.5× and 2× today's rate |
| Limited cover: limit distance | Up to 100% of the strike |
| Open maximum payout | Up to 100% of today's rate |
| Quote validity | 120 seconds, used once |
| Settlement rate | Must be between 0.5× and 2× the rate at purchase |
| Max payout ÷ premium | Between 1.5 and 100 |