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Introduction
Protection Products
Collateral Optimization (C-OP)
Guides
Purchase C-OP
Protection Liquidity
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Purchase C-OP
This page describes how to purchase C-OP.

Requirements

  1. 1.
    ​Metamask installed
  2. 2.
    USDC for purchasing C-OP
  3. 3.
    ETH for paying gas fees

Purchasing C-Op

We start with the launching page of UNION Protection, where users can purchase protection, add liquidity (sell protection), and claim protection. The app can be found at:
Protection | Union Finance
Click into Protection Buyer tile to access the Buyers’ Dashboard. The dashboard presents users with overview of overall protection market and a section of the users' own protection(s), if any.
From the dashboard, users can buy cover, manage covers, and get overall UNION protection stats.
Click on "Buy Cover" Button to access the Protection Marketplace. From here, click on the relevant C-OP Tile.
Once user selects the C-OP ETH, they get a quote for the amount, term, and strike of C-OP.
  1. 1.
    The amount represents the number of collateral tokens to optimize.
  2. 2.
    The term represents how long C-OP protection will be in force. At 11:59:59 UTC, the C-OP expires worthless if not claimed. Important: Even if C-OP is "in the money", it must be claimed in order for the buyer to receive the protection profit.
  3. 3.
    The strike is the price where the collateral will be optimized. The default price is the current spot price and buyers can adjust above or below the default price as befits their needs. Should the spot price of the collateral be higher than the strike price, then the C-OP can not be claimed. Should the spot price of the collateral be lower than the strike price, then the C-OP can be claimed for a profit (excluding transaction prices). All prices are read from Chainlink Oracles.
Click on Quote the receive a price quote. There are no charges associated with this action. The Total Cost shows amount to purchase C-OP based on your input parameters. You must have USDC and ETH in your wallet to purchase C-OP and pay for gas fees, respectively. If you do not have sufficient amount, the Buy Cover button will be disabled.
Click on "Buy Cover" takes you to the confirmation screen where you can adjust your slippage tolerances. Should price move larger than the amount specified in your slippage tolerance, the transaction will be reverted and you will not be charged USDC, though you will have to pay for some gas fees.
Click on "Buy Cover" to confirm purchase. If this is your first time purchasing C-OP, you will be prompted to approve two transactions in Metamask:
  1. 1.
    Approval to spend the USDC.
  2. 2.
    Purchase of C-OP.
These two approvals will always be sequential. You will be taken back to the "Buy Cover" dashboard where you will see your C-OP position in "My Covers". If you have purchased C-OP previously, you will only need to approve the purchase transaction.
You can also see your token in your address as an ERC-721 in Etherscan.
https://rinkeby.etherscan.io/address/0x7f7d11902e3ea27d9f72fec446d904e3970481b8#tokentxnsErc721
rinkeby.etherscan.io
​

Claiming C-OP

C-OP must be claimed even if you are in the money. They must be claimed by 11:59:59 UTC of the day of expiration.
Failure to claim your C-OP before expiration will result in the loss of any profit associated with the position.
To claim your C-OP go to the Buy Cover dashboard and click on the Claim button under "My Covers" for the C-OP protection you wish to claim.
In the claim window enter the amount of C-OP protection you want to claim. You can claim in part or in whole. You can click on "Max" to enter the total amount of protection left to claim.
If you partially claimed C-OP on this protection contract before, the Amount will show the amount outstanding or not yet claimed.
The Est. Payout shows the profit from your C-OP Protection and the formula is:
Est.Payout=Amount∗(Strike−Spot)Est. Payout = Amount * (Strike - Spot)
Est. Payout does not include any gas transaction fees. Click on "Claim" to receive your C-OP payout.
Claimed C-OPs will not longer be usable and will show under My Covers -> Claims section.
Protection Products - Previous
Collateral Optimization (C-OP)
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Protection Liquidity
Last modified 1yr ago
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Outline
Requirements
Purchasing C-Op
Claiming C-OP