Derivatives

Given Multitude's focus on onchain synthetics, derivatives represent a natural progression in our product offerings. We firmly believe that blockchain technology not only complements derivatives but substantially enhances their functionality and efficiency, and we are excited to provide greater elaboration on how we envisage their seamless implementation post-launch. Our platform will focus attention on the two most-commonly traded types of derivatives: options and futures.

Options contracts give the holder the right, but not the obligation, to buy (call option) or sell (put option) a specified number of shares at a predetermined price within a certain time frame.

Futures are standardized contracts that obligate the buyer to purchase or the seller to sell an underlying asset at a predetermined price on a future date. A Perfect Match Derivatives, being contracts deriving value from underlying assets, are well-suited for Multitude's synthetic on-chain platform. Our custody provider need not purchase the underlying shares until the contract's expiration or option exercise. Furthermore, this is only applicable to physically settled futures, whereas cash-settled futures require no asset purchase, streamlining the process even further. Multitude's derivatives platform will capitalize on blockchain technology to offer significant improvements over traditional methods. Smart contracts can automate various aspects of the process, ensuring fast, secure, and trustless settlement of transactions, at the same time as price oracles ensure our platform always mirrors real-world asset prices and is protected from market manipulation.

The Multitude team is confident derivatives will help provide a holistic and advanced trading experience for our community, while constantly staying at the forefront of technological innovation and industry standards.