Originally Posted by
Butterfly
so the terms will be as followed, roughly:
200 liability to 999, which is an asset for me to compensate the 1000 benchmark
since it's a liability, you can't donate it to charity directly yet. It will be your equity tranche to pay for the first 200 USD changes in your favor.
Ex 1: Spot is 1200 after 6 months, your liability is 200, your paper gain is 200, I owe you 0
Ex 2: Spot is 800 after 6 months, your liability is 200, your paper loss is 200, you owe me 400 USD
Ex 3: Spot is 1400 after 6 months, your liability is 200, your paper gain is 400, I owe you 200 USD
does it sound fair to you ?