Academy

Opium Turbo

Turbos

Turbo is a product with a short expiry that gives investors highly leveraged exposure to the underlying asset. Investors buy Turbo for the fixed price, and if the underlying asset goes above the specified strike price, they’ll have an upside, earning a high return within a short period, usually a day or a week. Turbos offer a chance of a high return, which comes together with a risk to lose limited funds in a short time.

Opium Turbos:

  • Weekly Turbo AAVE
  • Daily Turbo ETH

Purchase a short-expiry Turbo on AAVE/ETH. If the price of AAVE/ETH is above the strike price by the end of the turbo period, the buyer receives the full price difference between the current price and the strike price.

Example:

ETH price is 2,200 USD today and you buy (let’s say for 66 USD) a daily Turbo ETH that has a strike price of 2,300 USD. Your Turbo will perform with ~10-30x leverage on the difference above the strike price of 2,300 USD. Let’s say that ETH by the end of the day is 2,400 USD which is 100 USD above the strike price; this means your Turbo will be burned and pay you 100 USD. If ETH is 2,600 USD or 300 USD above the strike price, your payout will be 300 USD, and so on.

However, if ETH is underperforming that day, let’s say it is worth 2,200 USD, not reaching a strike price, your Turbo will expire without a payout. The silver lining is that you can’t lose more than the cost of Turbo: even if ETH crashes to 1,500 USD, your total loss will be the same — 66 USD you paid for Turbo.

Daily Turbo WETH

Daily Turbo WETH is a product with a short expiry that gives investors highly leveraged exposure to ETH. Investors buy Turbo for the fixed price, and if ETH goes above the specified strike price, they’ll have an upside, earning a high return within a day. Turbos offer a chance of a high return, which comes together with a risk to lose funds used to buy Turbo.

If the price of ETH is above the strike price by the end of the day, the Turbo buyer receives the full price difference between the current price and the strike price.

Weekly Turbo AAVE

Weekly Turbo AAVE is a product with a short expiry that gives investors highly leveraged exposure to the Aave governance token. Investors buy Turbo for the fixed price, and if the Aave governance token goes above the specified strike price, they’ll have an upside, earning a high return within a week. Turbos offer a chance of a high return, which comes together with a risk to lose funds used to buy Turbo.

If the price of the AAVE token is above the strike price by the end of the week, the Turbo buyer receives the full price difference between the current price and the strike price.