PRO V4 Rules

Dynamic Spread and Fair Pricing

Dynamic Spread In our continuous quest for excellence and robust platform integrity, PRDT is to introduce a new feature to our Price Prediction offerings: the Dynamic Spread. This feature is designed to augment the financial robustness of our decentralized system. The concept of Dynamic Spread is integral to the precision and fairness of binary options trading. On the PRDT platform, when users engage in simple Up/Down orders, the Dynamic Spread is incorporated into the strike price. This spread adjusts dynamically, reflecting the specific conditions of each trading pair and catering to the distinct characteristics of both Up and Down options. Here's what this means for our users: • For "Up" Options: The opening price will be slightly higher than the current market price, accounting for the potential upward movement. • For "Down" Options: The opening price will be set slightly below the current market price, factoring in the potential downward trend. Our implementation of Dynamic Spread serves multiple objectives: • Protecting the Volatility Surface: By incorporating a spread that adjusts with market conditions, we aim to safeguard the platform against spot oracle manipulation risk. • Enhancing Market Integrity: This feature ensures that prices reflect true market conditions, even for assets with lower liquidity, thereby enabling us to list pairs that were previously nonviable. • Maintaining Fair Pricing: Dynamic Spread allows for fair and transparent pricing for all market participants, irrespective of the asset's liquidity profile. PRDT remains committed to providing the most accurate asset prices. We achieve this by utilizing Pyth price feeds, ensuring that our crypto markets are updated with real-time data, maintaining the precision our users rely on. PRDT incorporates the Garman Klass volatility method into the dynamic spread calculation PRDT utilizes this advanced estimator, which factors in the intraday price variability, specifically for the strike price of an asset. This sophisticated approach provides a robust framework for adjusting spreads with high precision, reflecting real market movements and volatility. For an in-depth understanding of the Garman Klass volatility method, interested parties can refer to the comprehensive explanation provided by Breaking Down Finance​​.