Placing a vBid

Placing a vBid

  1. Select the desired volatility for your bid.
    This is the volatility that will be used to compute the wETH prices you offer for each option. There are three ways to select a volatility. You can click on an active bid in the bar graph on the left side of the screen. You can also input a custom volatility by clicking the pencil button on the right side of the screen. After clicking the pencil button, input a number (no need to include the percentage) and click the 'check' or press 'enter' on your keyboard. Lastly, you can click on one of the predetermined amounts on the right side of the screen.
  1. Select the maximum number of bids to make at this volatility.
    Use the + and - buttons to modify the number of times your bid can be accepted. This is the maximum number of options that you could acquire with this bid.
  1. [OPTIONAL] Set Advanced Options Filters
    If you'd only like your vBids able to be filled by options with certain strike prices and/or expiration dates, you can click 'Options Filter'.
    1. Strike Price Multiple: Instead of making vBids that are valid on all options in a collection, you can limit them to a maximum strike price. For example, if you only want exposure to 20% OTM options or less, you can set the Strike Price Multiple to 0.2x. When your vBid is accepted, the strike price of the purchased options will be 20% (or less) above the floor at that time.
    2. Duration: You can now set a minimum and maximum time to expiration for the options that your vBid will fill. This is useful for traders who may only want options with further out expiration dates. For example, if you only want to purchase options that expire further in the future (2 months or more), you can set the minimum duration to 60 days (~2 months). All options that your vBid fills will expire in 60 days or more!
  1. Set a Spending Limit and Approve wETH
    If you haven't placed a vBid before, you must set a spending limit. This is the maximum amount of wETH that the vBids pool can spend on your behalf. Click the 'Spending Limit' icon and input a wETH amount. Alternatively, you can click on your ETH balance in the top right corner. Once there, click 'vBids WETH Allowance' and input an amount of WETH by clicking the pencil icon. After inputting an amount and clicking enter or the 'check' icon, your wallet will open again. Metamask users can click 'use Default' or can reinput the amount of WETH they inputted on the previous screen.
We recommend that you do not set an unlimited spending limit here.


We recommend not approving an unlimited amount of WETH

If your cumulative bid amount is greater than the number of WETH approved, an 'Inactive' icon will appear. Your bids will not be filled until you approve more WETH.

  1. Make Volatility Offer
    After your wETH is approved, press 'Make Volatility Offer'. The protocol will preview the maximum current amount that this bid could cost you (i.e. the most expensive current option this bid could buy times the number of options). To ensure your bid can be filled, make sure your wETH balance and spending limits are high enough; however, you can buy fewer or less expensive options with this bid as long as you currently have enough wETH for those.