Bull Bear Strike Token - abbreviated as BBS – are leveraged structured products. Each BBS tracks an underlying crypto asset’s one-for-one, and you can use a BBS to go both bullish and bearish. Your risk is capped, because each BBS trade has a built-in knock-out level and will terminate if this is hit.

**Naming Convention**

**Format:** [Underlying]-[Side]-[Knockout price]-[identifier]

**Example: **BTC-MOON-30000-M101

**Terminologies**

**1. Knockout Price (KO Price)**

If the underlying price of a BBS hits the knockout price, the BBS will be taken-over by the risk management system and the trading of the BBS will be terminated immediately.

**2. Strike Price**

It determines the residual value of the BBS. If the underlying price of the BBS did not hit the strike price within 6 hours after it is knocked-out, the BBS will have a residual value, which will be received by the trader.

**3. Last Trade Time**

The time when the BBS will be called if you hold a BBS until the maturity date.

**4. Conversion Ratio**

The ratio that represents the BBS exposure to the underlying asset. For instance, if the ratio is 100, you will have to hold 100 BBS to have a 1-1 exposure to the underlying asset.

**5. Leverage**

The leverage level of a BBS. It represents the increase and decrease of a BBS when the price of the underlying asset changes by 1%. The higher the leverage level, the higher the potential profit of a BBS, as well as the loss.

*Leverage = underlying price / (BBS price * conversion ratio)*

**6. Spot / KO Difference**

The difference between the underlying's price and the BBS's Knock-out (KO) price.

**7. Pricing of BBS**

The pricing of BBS consists of its intrinsic value and the issuing cost charged by the issuer.

**8. Intrinsic Value**

- Intrinsic value of a Moon BBS = (underlying's price - strike price) / conversion ratio
- Intrinsic value of a Dive BBS = (strike price - underlying's price) / conversion ratio

**9. Issuing Cost / Premium**

The cost for an issuer to create a BBS. It is built into the BBS price at launch.

For Moon Token -

Premium = (BBS price * conversion ratio + strike price - underlying price) / underlying price x 100%

For Dive Token -

Premium = (BBS price * conversion ratio - strike price + underlying price) / underlying price x 100%

**10. Observation Period**

Once a BBS is knocked-out, it will enter into an observation period (6 hours). During this period, the lowest or highest underlying price recorded will be used as the settlement price for calculating the residual value of the BBS.

**11. Residual Value**

After the BBS is knocked-out, the remaining value of the BBS is the residual value. If the knocked-out BBS does NOT hit the strike level within 6 hours (observation period), there will be a residual value for the BBS.

If the BBS hits the strike level within 6 hours (observation period), there will be NO residual value.

*Formula:*

*Moon BBS = (settlement price - strike price) / conversion ratio*

*Dive BBS = (strike price - settlement price) / conversion ratio*

**12. Settlement Price**

If a BBS is knocked-out, the settlement price is the lowest or highest underlying price recorded during the observation period.

If the BBS is held until maturity, the settlement price is the average underlying price recorded during the observation period.

**13. Settlement upon Maturity**

If a BBS is held until maturity, the trader will receive a settlement amount.

Moon BBS: settlement value = (settlement price - strike price) / conversion ratio

Dive BBS: settlement value = (strike price - settlement price) / conversion ratio

**14. Trading Fee**

Currently, BBS trading is fee-free.

**15. Settlement Fee**

If your BBS is knocked-out or held until maturity, a settlement fee of 0.05% for the BBS will be charged.

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