> For the complete documentation index, see [llms.txt](https://docs.bracket.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bracket.fi/legacy-products/volatility-trading.md).

# Volatility Trading

## How will Passage change in the Bracket LSTfi Platform?

Passage is our volatility trading product in production today on Arbitrum. This section describes Passage as it exist today, denominated in $ETH.  In Phase II, Bracket will be modified to accept $brktETH instead of $ETH, so staking rewards will be constantly accruing while users trade.

## What is Passage?

{% embed url="<https://bracketx-fi.s3.amazonaws.com/videos/WHAT_IS_PASSAGEV2.mp4>" %}

Passage is designed for traders looking to take on short-term volatility positions without a directional bias. Passages allow traders to set a range of asset price (e.g. BTC  $20,000 - 20,655)  and take the “Stay In” or “Breakout” side of the trade, returning based on the time until the first range breakout.

“Stay In” traders make a return the longer the asset (e.g. BTC) stays in the range, profiting if in the range longer than 1 day. “Breakout” traders make a return if the asset breaks out of the range more quickly, profiting if breakout occurs in less than 1 day. There is a maximum return of 2x (100% profit) over a 2-day contract and claims are made automatically at first breakout. \
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\&#xNAN;*The breakeven is 1 day, so if it breaks out in less than one day the breakout is more profitable, if it stays in more than one day, the stay in side is more profitable.*