# Introducing Dopex — an all-round efficient options protocol

###### Options are essentially contracts that allow its holder to buy (Call) or sell (Put) the underlying asset at a certain price (strike price) to the person that sold the options within a specific amount (expiry) of time. Options are tricky and efficient options that benefit the purchasers and writers alike are even trickier. Dopex is a Decentralized OPtions EXchange platform that aims to solve the nuances and intricacies that come with option writing and purchasing by offering:
• Fair option pricing
• Maximum liquidity
• Capital efficiency for writers
• Cheaper options for purchasers
• Incentives for all protocol participants
• Rebates for option writers in case of losses via rDPX
• Minimal fees and maximum speed via L2

# What makes Dopex dope?

• Option pools
###### Through the use of option pools, Dopex maximizes liquidity and shares the risk of option writing between all liquidity providers, while not having to deal with any of the complexities that come with option writing manually.
• Option pricing model
###### Dopex uses the Black-Scholes equation to determine option prices. However, unlike other protocols, Dopex ensures that options for all strikes are priced correctly. This is possible through Dopex delegates — who are representatives with staked DPX that are elected to regularly quote multipliers that affect option prices to replicate real supply and demand as well as fair pricing. This provides fair option prices to both buyers and sellers. Initially, Dopex delegates are 5 of the largest derivative trading firms in the crypto space.
• Rebates for option writers in case of losses via rDPX
###### In case an option pool incurs a net loss during an epoch. The Dopex protocols’ rebate token, rDPX, is issued. Rebates are calculated based on the percentage loss incurred by option writers in USD. And a percentage of rDPX relative to the losses incurred is minted and distributed to option pool participants. This ensures superior returns in comparison to writing naked options.
• Minimal fees and maximum speed via L2

# Protocol tokens

## RDPX — Rebate token

###### rDPX while having no supply cap — has mechanisms in place to avoid it from being valueless while also providing intrinsic value to the token.
• rDPX would be a fee requirement for future app layer additions to Dopex such as vaults.
• Dopex would support rDPX as collateral to borrow funds from Margin to leverage option positions.
• rDPX would be used as collateral to mint synthetic assets, commodities, etc. which could further be used to create options for synthetic non-crypto assets.
• Fee accrual can be boosted via staking rDPX.

# Meet the investors

###### Some of Dopex’ early investors include:
• Ledger Prime
• Pattern Research
• SCC Investments