Zomma Terms

Unrealized PnL

UPnL= buyers' unrealized PnL + writers' unrealized PnL UPnL reflects as the sum of unrealized PnL from both options buyers & writers.

Margin Balance

Margin Balance = Balance + Net (option premiums received - option premiums paid) Margin Balance reflects the sum of balance and net option premiums received & paid.

Equity

Equity = Margin Balance + Buyers' and Writers' real-time theoretical values of positions Equity reflects the sum of margin balance and real-time theoretical total values of positions acquired by both buyers & writers.

Available Balance

Available= Margin Balance- Initial Margin Available reflects the difference of margin balance and initial margin.

Initial Margin

Initial Margin = Real-time maximal risks exposure (10%) + Abs( Writers' total real-time theoretical values of positions )

Initial Margin reflects the amount of funds option writer should maintain in the account to proceed with options selling.

Real-time maximal risks exposure

Real-time maximal risks exposure = writers' position size * spot price

Utilization

Utilization = 1- ( Available / Equity )

Utilization calculates the amount of funds used in a specific pool.

Health Factor

HF= Equity / ( Initial margin + Buyers' & Writers' Real-time theoretical total values of positions )

HF reflects the status of healthiness of an individual account, calculates the division value of equity over the sum of initial margin and real-time theoretical total values of positions acquired by both buyers & writers.

Shares

Share reflects the proportion of funds in a liquidity pool owns by the liquidity providers upon liquidity addition.

Space publishingGitBook Documentation

Good to know! We're still documenting this version of GitBook. Some documentation links might be out of date for now!