How Does the Smart Contract Handle the "Premium" Payment for an Option? ▴ Learn

How Does the Smart Contract Handle the “Premium” Payment for an Option?

The option premium, which is the price paid by the buyer to the writer (seller), is transferred instantly and automatically via the smart contract upon the option's minting. The contract locks the premium in a secure manner and releases it to the option writer, while simultaneously minting the option token for the buyer, ensuring an atomic exchange of value.

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