Advanced Parimutuel Options

A decentralized platform for cryptocurrency derivatives based on parimutuel betting

Token Sale Paused

What is APO?

Existing Problems
  • Sellers are required
  • Centralized trading system
  • A spread between the price of buying and selling must exist
  • No guarantee of payment in a volatile market
  • Significant margin requirements or premiums
  • Standard and exotic options traded in different trading pits
  • It is impossible to create your own option
  • High commissions
  • High premiums for options
  • Minimal leverage
  • Small profit
Our Solution
  • Option sellers are not required - only buyers
  • Provides a decentralized trading system
  • There is no spread between the price of buying and selling
  • Guarantee of payments to all winning participants from a pool
  • No collateral or margin requirements
  • Combine a vanilla and exotic options, in one pool
  • Participants to create their own options
  • 50% less commissions
  • 15% less premiums of options
  • Huge leverage
  • Up 40% more profit

Currently the market does not offer instruments for insuring against the risk of extreme price fluctuations. Though there are futures and options available on centralized exchanges, there are more minuses than pluses. For example, high option premiums or margin requirements for futures in the range of 80-100%. The reason - inability to insure the risk of sellers which results in high cost of options for buyers.

We are proposing a new revolutionary solution for the cryptocurrency market where sellers are unnecessary - reverse parimutuel

Transparency

All trades are done through smart contracts which guarantee payout to all winners and provide a method to monitor the pool

Guarantee

The APO platform does not require participation of sellers of options - buyers pay the option premium directly into a pool, eliminating the risk of unfulfilled obligations

Decentralization

The system is built on the principle of a smart contract in a blockchain which contains all the particulars of a trade

Dividends

The platform does not participate in trading as an organizer, but does charge a commission for facilitating the trade, part of which will be distributed amongst the token holders

Insurance

In APO no margins are required - an ideal instrument for miners as well as investors to guard against a falling market

Flexibility

Every participant can create their own options from binary to exotic (Build your own option) or use existing templates (vanilla calls & puts)

Spreads

There are no spreads between bid and ask in the APO platform because there are no sellers that would raise the price to decrease risk

How it works

Auction

The date of the auction is appointed one week before expiration. The frequency and duration of the auction will be determined during Beta testing.

We intended to use the standard expiration dates for options:

  • 2 weeks
  • 1 month
  • 3 months

Based on this, the frequency of the auctions will depend on the nearest expiring contract, such as 1 week before the expiration of 2-week options, monthly options, or 3-month options.

The main purpose of the auction - calculation of premiums and payments based on submitted bids. Each participant constructs the desired option or chooses one from a template, and enters the strike price of the underlying asset (BTC or ETH). After that, the participant chooses the type of order - market or limit and transfers the amount required to buy the option to the account of the smart contract.

  1. Announcement of the date and time of the auction
  2. Start of the auction
  3. Collection of orders (limit and market)
  4. End of the auction
  5. Calculation of commission and payments for each trade

Trades

After the auction is over and all the submitted bids are counted, a pool is formed. After the completion of the transaction, each participant using their own account through a website or mobile application, can see the options that accrued (along with their parameters) and monitor their value until expiration.

  1. Filling market orders and filling/rejecting limit orders
  2. Calculation of commission and recording into the pool
  3. Recording of option buyers

Expiration

Expiration is the moment when the contract expires, and is the date of settlement. The option execution date is indicated in advance during the auction, for example, 12 am on January 12, 2018. At the time of expiration, the price of the underlying asset is locked in (the price of BTC or ETH index is taken from several major exchanges for determination). Based on that price, payments are made to option holders. After the execution, each participant can check the status of their account.

  1. Locking-in the price of the underlying (Bitcoin/USD or Ethereum/USD)
  2. Publishing cut-off price
  3. Payout to participants who’s options are profitable

Demo (MVP)

MVP works only on desktop website version.

ICO Details

Token Name
APO
Token Type
ERC20
ICO Starts
April 25th, 2018 at 10:00
ICO Ends
May 23rd, 2018 at 09:59
Soft Cap
5,500 ETH
Hard Cap
12,700 ETH
Token Rate
1 ETH = 15,000 APO
Min Transaction Amount
0.1 ETH
Bounty
Yes

Discount for contributors

Token Distribution

3rd quarter 2017

Theoretical development of the idea

1st quarter 2018

Development of a platform for attracting investments

2nd quarter 2018

First phase of ICO

3rd quarter 2018

Development of an auction platform

4rh quarter 2018

Beginning of Beta Testing

1st quarter 2019

Release of the system

2nd quarter 2019

Improvement and optimization

2nd quarter 2019

Development of a system for trading, in part, of options and sale of designer options

3rd quarter 2019

Beginning of Beta testing Option Marketplace

4th quarter 2019

Release of Option Marketplace

Team

Dmitry Taubman

Methodology and analysis

Has a master's degree from the Institute of Technology. Is a creator of a system for dynamic option pricing. He is engaged in the study of capital markets and became a co-author of a patent in the United States.

Dmitry Filyaev

Core platform development

Has a MEPhi master's degree, as well as many years of experience working with financial instruments. Specialist in server-side and mobile application development.

Steven Markov

Development of Blockchain Technology

Specialist in development of high-volume real-time financial systems, as well as, design of the user interface for applications, including web and mobile.

Genadij Gerstein

Platform Architecture

Has a master's degree in Computer Science and more than 19 years of experience in design and development of software for payment systems and banks.

Emmanuel Livshits

PhD in Computer Science

APO consultant in the field of development of derivative instruments for the crypto-currency market. He publishes scientific papers since 1964 in the field of combinatorics, automatics and graph theory, had a number of scientific projects in the field of discrete optimization, static modeling, etc. You can find out more about the list of published papers here.