Pricing

Three prices matter, and each has one job:

Nothing trades at the oracle venue's price or at the mark; trades happen at a maker's price.

The oracle venue's surfaces: straight lines#

The venue reads each listed strike and expiry's bid and ask as they are. Between listed points it draws straight lines — along strike between neighbouring strikes, along time between neighbouring expiries. Towards zero time a line runs down to intrinsic; beyond the longest expiry the last segment is extended, up to 1.25 × the longest listed expiry. Everything stays inside the bounds no price can break (never below intrinsic, never cheaper for a longer life). Each point passes a confidence check; a point that fails it is skipped, so one broken quote at the oracle venue does not move your price, your slippage or your margin.

Makers#

• TLP (and the AUTO makers under it): the venue runs their quoting program; it answers at the oracle venue's bid and ask exactly, so their revenue is the oracle spread.
• Custom makers run their own quoting program on their own model and answer each request with a firm, signed quote.

A maker's spread rides the extrinsic only: ask = intrinsic + extrinsic × (1 + h), bid = intrinsic + extrinsic × (1 − h).

The price limit#

Only quotes inside the price limit can fill. With h = half the oracle venue's spread at that strike and duration:

• an ask counts if oracle bid ≤ ask ≤ oracle ask + h;
• a bid counts if oracle bid − h ≤ bid ≤ oracle ask.

A maker may quote tighter than the oracle venue, or up to h wider. One absurd quote cannot fill.

Who fills your order#

The single best maker for your whole size: the venue sends your request to the makers' programs and takes the lowest firm ask for a buy, the highest firm bid for a sell, among admitted makers with room for all of it (ties: more room, then the lower account number). It fills the whole order — or the whole piece, if your order is split (Piece size, default $1,000 of premium) — at its own price. If nobody can take it all, the venue refuses by name and says the largest size that fits.

Crossed quotes between makers are not blocked: there is no crossing breaker. The price limit keeps any cross small.

Slippage#

Slippage = how far your fill is from the oracle venue's price on your side (its ask when you buy, its bid when you sell). It includes any gap between our makers and the oracle venue. Your Max slippage caps it, on screen and on chain.

The mark#

A bought option is marked at the oracle venue's bid; a sold option at its ask. Our makers' quotes do not enter the mark, so no maker can move your margin. Note the honest gap: when you close, you get the best maker's price, which can be a little worse than the mark. An option price is never called a mark.

Read a price#

The quote route is a plain read, no key: asset, side, wing, strike (k as a ratio to spot, or strikeUSD), size in coin and duration in months. Add wallet= for your requirement after the trade.

curl -s "https://protect.temporal.exchange/api/venue/chain/quote?asset=BTC&side=buy&wing=call&k=1.05&qty=0.01&months=3"

The reply carries the price per unit, the premium, the fee and the oracle venue's side price it is measured from.

Where a model still appears#

Nothing traded is priced by our model. The venue keeps one model of how the asset moves (fitted to its own price history) only as a ruler for how big a maker's book is. Sold-option margin is a plain closed form.

Kept in lockstep with the code: a check fails if this page drifts.