> For the complete documentation index, see [llms.txt](https://documentation.ivx.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://documentation.ivx.fi/0dtes-market-dynamics.md).

# 0dtes Market Dynamics

### Market Operation

The IVX market acts as the counterparty for all users engaging with the IVX protocol. When a user seeks to purchase an option at a specific strike price, the AMM automatically accepts the trade, thereby exposing itself to a corresponding shot option contract of the same asset on that same strike price. If a user wishes to close the purchased option, the AMM's exposure as a seller will be offset, leading the AMM to exercise the option following the American options methodology.

Every day at 8:00 AM UTC, the IVX market generates option contracts for supported assets with incorporated volatility sources, initiating the trading session and enabling traders to write or purchase option positions that expire at 8:00 AM UTC the following day. 

Throughout the 24 hours trading period, (excluding 30 minutes before expiry when trading will be ceased), traders can enter or exit from any position based on a pre-generated list of strike price specific to each asset.

### Strike price list

IVX Strike price list will be align with the same strike price list as Deribit, aggregating three strike prices per asset closer to ATM: \[OTM , ATM , ITM]

Strike prices will roll out automatically as live price moves below OTM strike or moves above ITM strike, otherwise, the list of strike prices will remain unchanged. 

<figure><img src="/files/GILsFL3BC8rsT10vpKBZ" alt=""><figcaption></figcaption></figure>

### Option pricing

IVX market follows the Black-Scholes pricing methodology while fetching implied volatility for strike prices through specified oracle

* $BTC market and $Deribit market : 15min mark IV TWAP fetched from Deribit orderbook, in collaboration with Stork Network
* $HYPE : 15min scaled TWAP RVOL fetched from $HYPE price action, in collaboration with Chainsight

{% hint style="info" %}

* Min wETH position = 0.1 Contract
* Max wETH position = 200 Contract

- Min wBTC position = 0.01 Contract

- Max wBTC position = 7.5 Contract

- Min HYPE position = 1 Contract

- Max HYPE position = 30,000 Contract

- minPremiumPriceRate(factor \* token price): 0.0001 on all assets
  {% endhint %}