Pricing and Fees

Passage controls the structure of the offers in terms of:

• The term in seconds from the time of purchase (e.g. 2 days of time from the second of purchase until expiration)

• The multiple being offered, e.g. 2x (100% max profit)

• The assets allowed as we only allow assets that have high-quality on-chain oracles

The protocol calculates payoffs based on the time in the channel as a fraction of the total term and multiplies it by the premium paid and leverage ratio to deliver the payout. Fees: Passage generates revenue by charging fees on the total invested into each side of the "stay in" or "breakout" side:

Contract purchased tiered based on trading volume:

Order Size	Fees
Less than $50	3.00%
$50 to <$100	2.50%
$100 to <$250	2.00%
$250 to <$1000	1.75%
$1,000 to <$5,000	1.50%
$5,000 to <$10,000	1.25%
$10,000 or more	1.00%