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Knox Finance Docs
  • Knox Finance
  • Overview
    • Options
    • Covered Calls
    • Risk Management
    • Vault System
    • Options Auction
    • Fee Structure
  • Liquidity Providers
    • Depositing Collateral
    • Withdrawing Collateral
    • Redeeming Claim Tokens
  • Option Buyers
    • Buying Options
    • Withdrawing Options
    • Exercising Options
  • Developers
    • System Architecture
    • Epoch Mechanics
    • Auction Lifecycle
    • Contract Deployments
  • Appendix
    • Delta Strike Formula
    • Option Pricing Formula
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  • Market vs Limit Orders
  • Filled Orders
  • Partially Filled Orders
  1. Option Buyers

Buying Options

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Last updated 2 years ago

You can place orders to buy options before or during the . Both market and limit orders are supported.

Knox Finance uses a Dutch auction system, so no matter what type of order you use, you will always pay the clearing price.

Market vs Limit Orders

With a market order, you only specify the number of options you wish to buy and the maximum cost you are willing to pay. The amount paid by the buyer will be determined by the quantity of options being purchased and the price established by the .

  • market order may only be placed during the auction (Friday 4pm - 4:30pm UTC).

With a limit order, you specify the number of options you wish to buy and the maximum price you are willing to pay per option. The amount paid by the buyer will be determined by the quantity of options being purchased, and price specified by the buyer.

  • limit order may be placed once the auction has been initialized (Thursday 8am - Friday 4:30pm UTC)

  • limit orders may be cancelled anytime before an auction has been finialized.

Filled Orders

Orders are only filled if the order price is greater than or equal to the clearing price and there is sufficient liquidity to fill the order (utilization < 100%). Assuming sufficient liquidity, your order is filled at the clearing price reached at the end of the auction.

The difference between the amount paid and the cost and/or any unfilled amount is refunded to the buyer .

Partially Filled Orders

An order may also be partially filled if there is not enough collateral to meet the amount specified. In this case the difference between remaining collateral and the amount will be used instead, any unspent funds will be refunded to the buyer .

options auction
linear price curve
when they withdraw from the contract
when they withdraw from the contract