Buy yesterday

In the buy direction, the Contract seller wants a conditional BTC purchase outcome. They provide USDC. It is converted to BTC at execution. The Contract buyer adds a positive BTC payment, and both sides settle in BTC.

“Contract seller” still names the issuer’s role, even though this person wants to buy BTC.

How much USDC does the seller provide?

The input uses yesterday’s reference, multiplied by the BTC reference size.

If yesterday’s reference is 80,000 USDC per BTC, a 1 BTC size needs 80,000 USDC before the specified rounding. A 0.25 BTC size needs 20,000 USDC.

The actual BTC received depends on the conversion price and execution costs.

Funding the contract

Suppose 80,000 USDC converts at 84,000 USDC per BTC. The educational calculation returns 0.95238095 BTC. If the buyer adds 0.01190476 BTC, the fill holds 0.96428571 BTC.

That is the full amount available to share. There is no second conversion at settlement.

At settlement

If tomorrow’s average is at or above yesterday’s reference, the seller receives all funded BTC. The buyer receives zero.

If tomorrow’s average is below yesterday’s reference, the buyer receives BTC according to the payout formula. The seller receives the rest. A large enough drop can give the buyer all funded BTC and leave the seller with zero.

BTC amounts stay in BTC

A fixed Contract price of 0.01190476 BTC stays that amount even if the displayed USDC value changes. A fixed BTC target also stays in BTC.

Do not read a changing USDC display as a change to the BTC amount you authorized. Compare targets and fixed prices.

When this direction is allowed

Buy contracts can fill above yesterday’s reference. They can also fill slightly below it, strictly within a 0.5% gap. At exactly 0.5% below the reference, only sell contracts are eligible.

A met target can still complete as a direct swap before this eligibility check.

See the buy example and BTC results.