Passage gives users the ability to play volatility without having to know what direction price is moving. This is useful because crypto assets like ETH tend to have moments of extreme volatility followed by longer periods of sideways movement. These non-trending conditions make it hard to predict if price will move up or down within a 2-day window. Passage repackages what would be a difficult options strategy into a simple and fun market where traders can decide, volatility or no volatility? Further, Passage has an order book and the ability to "sell-back" a contract, which further increases the product's usefulness compared to rigid prediction markets.

Passages are not binary options. Passages are an all-new range-bound volatility derivative. While a binary option is all or nothing, a Passage accrues value OVER TIME and has a max payout of 200%. For both positions, "Stay In" or "Breakout," the break even is 1 day. For a "Stay In," the position starts at 0% of your investment and accrues until the first breakout, automatically settling. "Stay In" traders want to remain in the range for >1 day to profit. A "Breakout" trader wants to breakout of the range as quickly as possible, profiting if the position breaks out <1 day.

Passage has the following fee schedule:

Our current product (Passage) has preset terms (e.g. 2 days contract) but because each term begins only when matched with another order, there is no common expiry. Passages will auto-expire when the price first breaks out of the range or terminates at the end of the term. You have the option to “sell-back” a contract, but otherwise, there is no manual claim process for Passage.

BracketX offers ETH-denominated markets on Arbitrum. We will soon support markets on BSC. BracketX tracks assets like BTC, ETH, and BNB.