Expiry and Settlement

Expiry Time

• All options on ClickOptions expire at 08:00 UTC on their maturity date.

• Available expiries: Daily, Weekly, Monthly, Quarterly.

• Once expired, contracts are automatically settled and results recorded in Exercise History.

Settlement Price Calculation

The Settlement Price is based on the time-weighted average price (TWAP) of the proprietary Index Price during the last 30 minutes before expiry (07:30–08:00 UTC).

Formula:

$$SettlementPrice = \frac{\sum (IndexPrice_t \times Weight_t)}{\sum Weight_t}$$

Where:

• IndexPricetIndexPrice_tIndexPricet​ = Index Price at time t

• WeighttWeight_tWeightt​ = Assigned weight for observation t

This ensures the final settlement price is robust against short-term volatility and price manipulation.

ITM vs OTM Outcomes

• In-the-Money (ITM): The option has positive intrinsic value at expiry.

  • Call Option:

  $$IntrinsicValue = \max(IndexPrice_{settlement} - Strike, \; 0) \times ContractSize$$

  • Put Option:

  $$IntrinsicValue = \max(Strike - IndexPrice_{settlement}, \; 0) \times ContractSize$$
• Out-of-the-Money (OTM): The option expires worthless → no payout.

Exercise Fee

• Applied only to ITM options at expiry.

• Exercise rate: 0.01%

• Exemption: If the option was opened and expired on the same day, no exercise fee applies.

Formula:

$$\text{Exercise Fee} = \min\left( \text{Exercise Fee Rate} \times \text{Settlement Price} \times \text{Contract Size}, \ 10\% \times \text{Option Value} \right) \times \text{Position Size}$$

Example – BTC Call Expiry

• Strike: 100,000 USDT

• Settlement Price: 105,000 USDT

• Contract Size: 0.01 BTC

• Position size: 10 contracts

• Premium Paid: 150 USDT

• Exercise Fee Rate: 0.01%

Option value:

$$\text{Option Value} = 105{,}000 - 100{,}000 = 5{,}000\times 0.01 \times 10 = 500$$

Exercise fee:

$$\text{Exercise Fee} = \min\left( 0.01\% \times 105{,}000 \times 0.01, \ 10\% \times 500 \times 0.01 \right) \times 10$$

ExerciseFee = 0.11 USDT

Profit=500−150−0.11= 349.89  USDT