> 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/term-and-expiration.md).

# Term and Expiration

All Passage contracts have a "term" e.g. 2 days, etc. The terms will start at the time of purchase and do not have common expiry. Example: a 2-day Passage purchased at 2:35pm will expire at 2:35pm in exactly 2 days' worth of time.\
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Passages will automatically settle at the first breakout. **Buyers will be compensated for the fraction of time the asset's spot price remains in the price range until it terminates relative to the full term.**

At expiration, Passage will use Chainlink Automation to automatically settle the Passage contract. Chainlink Automation uses a decentralized network to monitor automation logic securely and cost-efficiently off-chain, and then initiate an on-chain transaction to execute the smart contract function when predefined conditions are met. To learn more, read about Chainlink Automation[ ](https://chain.link/automation)[**HERE.**](https://chain.link/automation)