How to use Synth Puts: Quick Guide
When you create a Synthetic Put Option, you are creating a financial safety net. It’s a strategy to protect you from a drop in prices when you think the market is going down.
Last updated
When you create a Synthetic Put Option, you are creating a financial safety net. It’s a strategy to protect you from a drop in prices when you think the market is going down.
Last updated
With Umoja, you can lock in your gains by placing a Synth Put Option.
Watch our founder Robby Greenfield as he gives us a walkthrough of Umoja´s Synthetic Put Options. Learn from him how to use Synths and in what scenario this strategy can be useful for you.
Visit https://umoja.xyz/synth and follow these steps:
Step 1: Click “Synth Put” to select this option at the top of the form.
Step 2: Select a token from the list and enter the amount that you want to protect from market loss.
Step 3: Choose a date or the duration you want your protection to last until. The date you select on the calendar is when your market loss coverage will end, or in other words when your Synth will expire (specifically at 11:59:59PM UTC 0 on the date you select).
Step 4: Choose your strike price, meaning the price you want your protection to start at. Take a look at the current price of the token for your reference.
Step 5: After you populate all the fields from the form, this notification will appear: "Collateral should be > 5% of the notional amount you protect to maintain Synth Put". You can click on "Learn more" from there to access additional information on collateral maintenance.
Step 6: You could click on "Details" to see all the details of the Synth you are creating and a breakdown of the Total down payment amount. Click on the "Connect your wallet" or "Place Synth" button to proceed.
Step 7: A Pop-up window will appear showing all the details of the Synth you are creating. After reviewing the information, click on "Confirm Synth" to pay for this transaction. Once your crypto wallet approves the transaction, you will be redirected to the Synth details page in your Dashboard.
