# Open Interest Cap There are four different trade types possible on IVX * **Long call:** Trader buys a call option * **Short call:** Trader sells a call option * **Long put:** Trader buys a out option * **Short put:** Trader sells a put option Both Long Call and Short Put require volatile tokens to be reserved, while Long Put and Short Call require stablecoins to be reserved against them. To ensure that a combination of trades that offset IVLP exposure to traders' positions is always possible, we limit the exposure to open interest in each of these trade types. We make the following assumptions ahead of protocol launch: * The demand for Calls and Puts will fluctuate with changing market conditions and it is important to allow sufficient capacity for this open interest in these positions * Long option open interest are expected to be in significantly more in demand compared to short option open interest * Target assumption is that if total open interest is capped, liquidity pool exposure to traders P\&L is reduced and will be closely correlated to index price action {% hint style="info" %} Open Interest Cap parameters: * Buy Call Option Price Factor (reserve): 1 token * Buy Put Option Price Factor (reserve); 1 token worth of USD at moment of execution * Sell Call Option Price Factor(reserve); for all assets = 15 * Sell Put Option Price Factor(reserve); for all assets = 15 * Buy Call / Sell Put ratio; for all assets = 1 * Buy Put / Sell Call ratio; for all assets = 1 * Buy Call Token Price Factor; 1^e-17 * Buy Put Token Price Factor; 1^e-17 {% endhint %} --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://documentation.ivx.fi/integrations/open-interest-cap.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.