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- Marketplace
- Index
My Account
Select...
Reimagine
Risk Transfer
Prerequisites
a wallet (ideally ZillPay, but Zillet works as well) to hold some ZIL (for gas fees) and to track and transfer the stablecoin XSGD (x-Singapore-Dollar: the “digital image” on the blockchain of the fiat currency SGD).
download and install the browser
extension for ZillPay, or use Zillet.
purchase ZIL and buy stablecoins XSGD through Xfers' StraitsX.
Select index
01go to Marketplace
choose according to your needs: looking for protection as a Buyer, or looking to earn yield by offering protection as a Seller.
all sources for index data are official, trusted - and the data is verified and secured
Create offer
02The Buyer (B)
Wants to buy protection against a certain event (based on the previously chosen index) over a certain time.
thinks about how much she is willing to pay for the protection, then checks the market to see what is on offer.
The Seller (S)
wants to earn some yield by selling protection against a certain event (based on the previously chosen index) over a certain time.
thinks about how much yield she is requiring to offer the protection, then checks the market to see what yields are currently on offer.
both can either accept an existing offer, or decide that nothing is available that meets their needs, and decide to put a new offer on the market.
Both B and S decide on a certain term and a strike level (as per the pre-defined standards)
and instead of accepting any offer currently available, they both create a new one that fits their needs:
B:
wants to buy protection against a certain event over a certain time and offer at most 8% relative Premium for this. The lowest Premium on offer is 10%, which is higher than what B wants to pay, so B puts a new offer in, offering 8%.
S:
wants to sell proection against a certain event over a certain time and wants to earn at least 9% for this. The highest Premium on offer is 8%, which is lower than what S wants to earn, so S puts a new offer in, asking for 9%.
Now the new order book shows the highest bid at 8%
and the lowest ask at 9%.
Match an offer
03Given the spread narrowed another B (B2) and another S (S2) come in.
B2:
sees the offer from S offering protection for 9% and considers 9% to be a good price to get the protection.
B2 grabs the offer from S
now the offer from S requiring 9% yield is no longer available on the market, but the offer from B to buy protection for 8% still is
S2:
sees the offer from B offering 8% and considers 8% to be a good yield for the index, term and strike because S2 thinks this event will happen with a much lower probability
S2 grabs the offer from B
now also the offer from B to buy protection for 8% is no longer available in the market
See your active portfolio
04Get important insights to track and monitor your P/L. See your open, live,
and closed deals. If required, define immediate follow-up actions,
and instantly execute upon it (coming soon).
Payout
05Immediate, automated and transparent payout according
to the defined terms of the contract, with no bureaucracy
