What Is Advanced Parimutuel Options Betting (APO)?

Advanced Parimutuel Options is decentralized platform that is based on parimutuel betting for cryptocurrency derivatives. Pari-mutuel betting can be defined as a betting system whereby similar bets are put together into a pool and then the payoff odds are calculated while putting into consideration that the pool will be distributed among the winning bets.

One of the major problems facing the cryptocurrency market is the high premiums that sellers of options ask for and this can be attributed to the fact that hedging is not possible in this type of market. The absence of hedging opportunities means that the seller of the options cannot protect themselves against risks that arise in the very volatile crypto-market and thus the high premium will be for purposes of compensating for the risk.

Advanced Parimutuel Options tries to solve this problem by introducing a new concept known as reverse pari-mutuel, which is a new way of trading options on cryptocurrencies.

The reverse pari-mutuel works in three stages:

Auction

During this stage, the premiums and payments will be calculated based on the total number of bids submitted. The participants then choose the options that suit them the most and then input the strike price of the underlying asset in Bitcoin or Ethereum. They then choose the type of order and the required amount for purchasing of the option to the smart contract’s account.

Trade

A pool is formed after counting of the bids that were submitted during the auction. Participants are allowed to observe and monitor the value of the options that accrued once they complete the transaction.

Expiration

This is the final stage and it occurs once the contract is expired. The price of the underlying assets is locked in and the cut-off price is published. After this, payment is made to the participants whose options were profitable.

Advanced Parimutuel Options Betting Derivatives Benefits

Transparency:

The smart contract integrated into APO’s system ensures that there is transparency as participants can easily monitor the activities of the platform. The smart contract also ensures that winners are always paid in full.

Decentralization:

The platform is based on the Smart contract principle, which is decentralized and thus resulting in transactions being faster and an increase in the efficiency of the platform.

Fulfillment Of Obligations:

The platform fully eliminates the risk of undone obligations as the option premium is paid directly by the buyer to the pool and therefore sellers are not involved.

Dividends:

The platform only facilitates the trade and it charges a commission for it. The commission is then distributed to the token holders as dividends.

Insurance:

In order to provide a cushion to investors as well as miners against the falling market the platform doesn’t require any margin.

Flexibility:

Investors and miners are allowed build their own options which can range from binary to exotic, they are also allowed to use existing templates such as vanilla calls and puts.

Advanced Parimutuel Options APO Token ICO Details

The APO token will be ERC20 based and will be available on exchange platforms for secondary circulation. They can also be visible on the user’s wallets such as MyEtherWallet, MetaMask, or Mist.

The APO token sale is set to start on 04/25/18 and ends on 05/23/18. You can use Ethereum to purchase APO tokens.

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